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Global Financial Stability Report 2024


Why is it in the news?

  • Rising Cyber Threats pose serious concerns for Macro-Financial Stability, warns International Monetary Fund (IMF).
  • The number of cyberattacks has nearly doubled since the COVID-19 pandemic, with financial firms accounting for nearly one-fifth of the total, particularly banks.

Causes of Rising Cyber Incidents in the Financial Sector

  • Increased digital financial services provide a target-rich environment for hackers.
  • Insider threats, where authorized users misuse their privileges for monetary gain, are a significant concern.
  • A cybersecurity skills gap leaves financial firms vulnerable to cyber threats.
  • Geopolitical tensions, such as the surge in cyber-attacks following Russia’s invasion of Ukraine, contribute to the threat landscape.

Impact of Cyber Attacks on Macro-financial Stability

  • Data breaches erode confidence in the viability of targeted institutions, leading to high deposit outflows.
  • Cyber-attacks on payment networks can disrupt trading and online banking, undermining a country’s financial stability.
  • Cyber-attacks propagate rapidly within financial systems through linkages, affecting market stability.

Policy Recommendations

  • Strengthen reporting of cyber incidents by financial firms to supervisory agencies.
  • Financial firms should develop and test response and recovery procedures to remain operational in the face of cyber incidents.
World Cybercrime Index

路聽 聽 Developed jointly by the University of Oxford and UNSW Canberra.

路聽 聽 India ranks 10th in cybercrime, with frauds involving advance fee payments being the most common type.

路聽 聽Russia tops the list, followed by Ukraine and China.

 

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