In light of the threat to global financial stability, the IMF recommends stepping up cybersecurity measures

According to the IMF, around one-fifth of events affect financial firms, indicating how highly exposed the financial industry is to cyber hazards.

Concerns have been voiced by the International Monetary Fund (IMF) on the growing risk of cyberattacks to the stability of the world financial system.

The international organization noted that during the previous 20 years, and particularly after the COVID-19 pandemic, the frequency of cyber-related incidents has increased significantly.

The multilateral lender noted in its April 2024 Global Financial Stability Report that, as of 2020, the total documented direct damages from cyber-attacks have come to about $28 billion (in real terms), with billions of records either stolen or corrupted.

However, it was noted that the overall direct and indirect costs of these accidents are probably far larger.

While the majority of direct recorded losses from cyberattacks are minimal, often under $0.5 million, the research notes that there is now a greater chance of extreme losses, perhaps reaching as high as $2.5 billion.

The COVID-19 pandemic has accelerated the growth of digital connectivity, which has led to an increased reliance on technology and financial innovation. The report also identified some contributing factors to the rise in cyber incidents, including geopolitical tensions as evidenced by the spike in cyberattacks following Russia’s invasion of Ukraine in February 2022.

Pointing out that about one-fifth of all occurrences involve financial firms, indicating that the financial sector is especially vulnerable to cyber dangers.