The Banking Executive Magazine - March 2022 Issue

ISSUE 159 MARCH 2022 the BANKING EXECUTIVE 1 Editorial COMBATING CYBERCRIME The financial sector is an appealing target for cybercriminals given that they can access the core systems of financial institutions remotely. Moreover the Financial Crisis related to the COVID pandemic several waves has increased potential emerging financial crimes; working remotely from home has also created unforeseen situations of Cybersecurity weaknesses. As barriers between countries are falling in today’s interconnected world, banks have been quick at tapping into the enormous opportunities offered by cross-border banking. Accompanied with numerous challenges and gaps where everything is connected and consequently everyone is vulnerable. Payment systems are increasingly relying on sophisticated IT platforms, therefore increasing the risks of cybercrimes when these platforms are not duly compliant to security softwares. These risks do pose a serious threat to the very foundation of financial institutions exposing it to various vulnerabilities and Cybercrime activities such as hacking, theft of identities and accounts, fraudulent manipulations of wire transfers, phishing attacks threatening the Financials Institution’s IT platforms and disrupting built-in systems as well as Crucial Data Intrusion. Certainly cyber risk is a growing threat that has serious implications on supervision, consumer protection and financial stability. Prevention from cyber-attacks has become a constant challenge for both the bankers and the regulatory authorities. Cyber resilience should go beyond just technology, it should also involve governance, the Cybercrime risk assessment policies and procedural framework as well as business processes. Regulatory and supervisory authorities worldwide have taken measures to address cyber risks. But as the digital sector is continuously evolving, thus, regulations should be regularly revised and adequately updated. Dr. Joseph Torbey, Chairman - World Union of Arab Bankers