Cyber Attacks on Global Financial System Increase, Highlighting Urgent Need for International Cooperation

The global financial system is facing an unprecedented threat from cyber attacks, with the number of purely disruptive and destructive attacks increasing rapidly. These attacks not only compromise sensitive financial information but also provide perpetrators with knowledge of the system’s networks and operations, enabling them to launch even more devastating attacks in the future or sell this information on the dark web.

The Risks

• Purely disruptive and destructive cyber attacks are on the rise
• Attackers gain access to sensitive financial information and operational knowledge
• This information can be used to launch further attacks or sold on the dark web
• Lack of coordination among governments, financial authorities, and industry players exacerbates the problem

The Urgent Need for International Cooperation

A new report by the Carnegie Institute for International Peace highlights the urgent need for international cooperation to address this challenge. The report recommends a comprehensive strategy that includes:

Increasing Cybersecurity Capacity

• Financial services firms should invest in initiatives to build a talent pipeline
• High school, apprenticeship, and university programs can help build cybersecurity capacity
• International organizations such as the IMF and other G20 governments and central banks should create an international mechanism to build cybersecurity capacity for the financial sector

Strengthening Cybersecurity Workforce

• Building a strong cybersecurity workforce is crucial to addressing cyber attacks
• Governments and industry players must work together to develop this workforce

Safeguarding Financial Inclusion

• Maintaining progress in financial inclusion requires strengthening connections between financial inclusion and cybersecurity
• This is particularly urgent in Africa, where many countries are experiencing a significant transformation of their financial sectors

International Cooperation

The report recommends that governments make clear how they will apply international law to cyberspace and strengthen norms to protect the integrity of the financial system. This could involve:

Sanctions, Arrests, and Asset Seizures

• Governments should take action against perpetrators of cyber attacks
• Sanctions, arrests, and asset seizures can help deter future attacks

Conclusion

“The time has come for the international community to come together to address this urgent and important challenge,” said Tim Maurer, director of the Cyber Policy Initiative at Carnegie Institute for International Peace. “A well-thought-out strategy provides a blueprint for turning words into action.”

The report’s recommendations are based on research conducted by the IMF and other international organizations, which highlights the need for a coordinated approach to address the growing threat of cyber attacks on the global financial system.

About the Author

Tim Maurer is the director of the Cyber Policy Initiative and a senior fellow in the Carnegie Institute for International Peace’s Technology and International Affairs Program.