Global cyberattack damages are quite high, totaling $2.5 billion, according to the IMF

The potential of severe losses from cyber events is growing, and the International Monetary Fund (IMF) issued a warning that may make it difficult for businesses to get funding or even threaten their solvency.

Furthermore, events in the financial sector have the potential to undermine trust, interfere with essential services, or spread to other institutions, endangering the stability of the economy and financial system.

According to the IMF’s April Global Financial Stability Report, «Cyber Risk: A Growing Concern for Macro-Financial Stability,» the size of extreme losses from cyberattacks has more than quadrupled since 2017, to $2.5 billion, and indirect losses, like reputational damage or security upgrades, are significantly larger.

The international organization recalled that attacks on financial companies account for nearly one-fifth of all cyberattacks, with banks being the most vulnerable. Financial companies are particularly vulnerable to cyberattacks because of the large amounts of sensitive data and transactions they handle, making them frequent targets for criminals looking to steal money or disrupt economic activity.

The IMF pointed out that cyberattacks that interfere with vital services like payment networks could also have a negative effect on the state of the economy. Moreover, financial institutions are becoming more and more dependent on outside IT service providers, and this dependence could grow as artificial intelligence plays a bigger role.