Banks in the Gulf Cooperation Council (GCC) are managing their exposure to potential cyber-attacks “effectively” by investing in digital security, according to an S&P Glabal ratings report.
S&P Global Ratings is a financial research and analysis firm based in the United States that publishes financial research and analysis on stocks, bonds, and commodities.
Over the last decade, only a few minor cyberattacks have been reported by GCC banks. Banks began working online rather than offline during the pandemic, but there was little disruption “thanks to years of investment in infrastructure and systems.”
According to figures from the end of 2021, the region’s top 19 banks will experience a 7.5 % drop in net income and a 0.6 % drop in equity, according to cyber security specialist Guidewire.
The banks’ average operational risk capital charge was 3.6 percent of total equity at the same time.
According to Guidewire, the data suggests that GCC banks have enough operational risk capital to cover cyber risk losses.
Ransomware, ongoing risks from remote work, rising cloud-based cyber-attacks, social engineering, and supply chain attacks will be the top cyber security threats for banks in 2022, according to cyber security experts.
Cyber-attacks have increased significantly in recent months, according to rating agency statistics, with a World Economic Forum report calling 2021 a “unprecedented year for cyber-crime in terms of volume and severity.”
According to a study conducted by the research firm Cybersecurity Ventures, cyber-criminal activities are expected to cause $6 trillion in global damage by 2021.
According to the California-based firm, cyber crime costs are expected to rise by nearly 15% per year over the next three years, reaching $10.5 trillion annually by 2025, up from $3 trillion in 2015.
The New York Federal Reserve discovered that financial firms are targeted by cybercriminals 300 times more than other industries, demonstrating how appealing this sector is to cybercriminals.
According to analysts, the main reasons to be cautious about cybersecurity trends are: Because of the rise in cashless transactions, more financial transactions are now digital than ever before.
According to Guidewire’s findings, the cyber risk profile of GCC banks is comparable to that of developed markets rather than emerging markets.