A well planned cyberattack in the US banking system. UU. It could have a devastating effect on the financial stability of the USA. UU., According to a new investigation of the Federal Reserve Bank of New York.
In a document called “pre-mortem analysis” that was published on Monday, bank analysts
Michael Junho Lee
He analyzed how banks would react to cyber attacks that impaired their ability to process payments between banks.
“If a cyberattack compromised the integrity of bank systems, the reconciliation and recovery process would be an unprecedented task,” the authors wrote. “This could have serious consequences on the stability of the broader financial system in the face of indirect effects for investors, creditors and other participants in the financial market.”
The document examined what would happen if there were an attack that affected the five largest banks involved in the payment system.
“A cyber attack on any of the most active US banks that impairs the ability of any of those banks to send payments would likely be amplified to affect the liquidity of many other banks in the system,” the authors wrote. “The extent of the amplification would be even greater if the banks respond strategically, which they are likely to do if there is uncertainty about the attack.”
The document notes that a cyber attack has much in common with the operation of an old school bank, where a bank cannot provide money to clients who want their funds, and panic ensues.
The authors said their findings were based on the study of data from Fedwire, the payment processing system widely used by the central bank. They wrote that “high value payment and settlement systems can be a natural candidate for a malicious attacker to attempt to inflict as much damage as possible on the financial system and the economy in general.”
They noted that, given the ebbs and flows of activity in the payment system, the timing of an attack could increase the damage. The newspaper said that if a cyber attack harmed the financial system broadly enough, “the potential impact on the activity of lost payments is dramatic, reaching more than 2.5 times the daily GDP.”
Concern about cyber attacks against the US government. The US, its allies or the companies responsible for the infrastructure, including the banking sector, has increased since the US attack that killed an Iranian military leader.
Write to Michael S. Derby at [email protected]
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