Global Financial System Under Threat: Experts Warn of Destructive Attacks
The world is facing a growing threat to its financial system from cyber attacks, with experts warning that immediate action is needed to prevent the system from becoming increasingly vulnerable to disruption.
Collective Action Problem
The main issue is a collective action problem: how best to organize the system’s protection across stakeholders and leverage resources effectively and efficiently. The current fragmentation among initiatives stems from the unique aspects and evolving nature of cyber risk, with different communities operating in silos and tackling the issue through their respective mandates.
Disconnect Between Finance and National Security
The disconnect between financial authorities and national security agencies is particularly pronounced. Financial authorities face unique risks from cyber threats, yet their relationships with national security agencies remain tenuous. This responsibility gap fuels risks and highlights the need for greater collaboration and coordination.
Comprehensive Strategy
A comprehensive strategy has been outlined to address the growing threat:
- Build Cybersecurity Workforce: Elevate unemployment due to the pandemic provides an opportunity to train and hire talented people to strengthen the cybersecurity workforce.
- Expand Financial Sector’s Cybersecurity Capacity: Focus on providing assistance where it is needed, including building international mechanisms to build cybersecurity capacity for the financial sector.
- Safeguard Gains in Financial Inclusion: Maintain progress in financial inclusion by strengthening connections between financial inclusion and cybersecurity.
International Norms
The report also emphasizes the need for reinforced international norms to protect the integrity of the financial system. Governments should make clear how they will apply international law to cyberspace, and strengthen norms to prevent destructive attacks.
Call to Action
The time has come for the international community to come together to address this urgent and important challenge. The comprehensive strategy outlined in the report provides a blueprint for turning words into action.
Expert Insights
- “The global financial system is under threat from destructive cyber attacks. We need immediate action to build cybersecurity capacity and reinforce international norms to protect the integrity of the financial system.” - TIM MAURER, director of the Cyber Policy Initiative at Carnegie Institute of International Peace
In an era where technological advancements are rapidly changing the landscape, it is crucial for governments, financial authorities, and industry players to come together to address this critical challenge. The future of global finance depends on it.