The International Monetary Fund (IMF) found that 56% of central banks or regulators do not have a national cyber strategy for the financial sector.
The Washington-based organization made the statement after studying 51 countries and summarizing its findings in a report titled “Growing Cyber Threats Urgently Force Financial Institutions to Step Up Security Measures.”
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According to the report, 42% of these financial institutions have no dedicated regulation on cybersecurity or technology risk management, and 68% do not have a dedicated risk function within their supervisory department.
“64 percent do not mandate testing or implementation of cybersecurity measures or provide further guidance; 54 percent have no dedicated cyber incident reporting systems and 48 percent have no cybercrime regulations,” it explains.
The IMF stressed that cyber attackers are relentlessly targeting the financial sector. The institution said, “Due to the close financial and technological interconnections within the financial sector, attacks could spread rapidly across the system, leading to widespread disruptions and loss of confidence. Cybersecurity is therefore a significant threat to financial stability.”
In its April 2024 Global Financial Stability Report, the IMF revealed that $12 billion has been lost to cyber attacks over the past 20 years.
The Nigerian Interbank Payments System recently revealed that financial institutions lost about 17.67 billion naira to fraud in 2023.
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While the number of fraud cases fell 6% to 95,620, actual losses due to fraud increased 23% in 2023 compared to 2022, according to the NIBSS.
“The fund's recommendations include the development of robust national cyber strategies, the implementation of cybersecurity-specific regulations, and the establishment of dedicated risk units within supervisory authorities,” the IMF added in its recommendations to central banks.
