Since the turn of the millennium, hacking incidents in various economic sectors have been on the rise. Today, the impact of these cyber crimes is being felt by the whole economic ecosystem, and it is feared that these hackers will catalyse the next global financial crisis.
In the recent past, the banking industry has been a major target for hackers. While at it, these cybercriminals access bank records and alter the customers’ bank balances. This has been supported by Mark Boleat, the head of policy for the City of London. He believes that these frequent attacks will soon have a major impact in the financial world and can render any bank useless.
The presence of an underground economy, which allows for this manipulation to occur, has also aided the hackers: There are numerous hackers who are ready to hack into a system for a fee. As such, major financial institutions, such as JP Morgan, have been hacked. On this occasion, hackers managed to access information of around 76 million households and 7 million small businesses. This, by a large extent, indicates the ability of modern day hackers to cripple a financial institution. A large attack, in consequence could start a downward spiral in the finance sector, thus leading to an international financial crisis.
What’s the way forward?
The solution against this is investing more money in cybersecurity and cybersecurity companies. When these companies have bolstered their capacity to offer efficient solutions, they can counter the hackers effectively. Also, experts point out that there is a need for a national dialogue on hacking, which will create more awareness for financial institutions and their customers.
Hacking can be the major trigger of the next financial crisis if the current trends are anything to go by. However, it can be effectively countered through multi-stakeholder partnerships and having a more dedicated investment in cybersecurity firms.