Simulated Cyber ​​Attack on the Global Financial Sector: The Hypothetical Banking Impact is Huge

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A simulated cyberattack in 10 countries orchestrated by “sophisticated” players in the global financial industry has brought banking systems to a standstill, havoc in markets and governments scrambling to clarify the impact.

Israel staged what its finance ministry called a “war game” that also included treasury officials from the United States, Austria, Italy, Germany, the Netherlands, Thailand, UAE, UK and representatives of the International Monetary Fund, World Bank and Bank for International Settlements, Reuters reported.

Cyberattack simulated by collective force: context and lessons

The 10-day exercise – officially called “Collective Force” because its aim was to highlight the need for international coordination and cooperation to counter cyber attackers – had been planned over the past year. This covered cyber-offensives in global foreign exchange and bond markets, liquidity, data integrity and transactions between importers and exporters, according to the report.

The exercise mimicked a variety of scenarios, with sensitive data being released on the dark web and widespread disinformation reports of chaos in global markets and a run on banks. “Banks are appealing for emergency liquidity assistance in a host of currencies to end the chaos as counterparties withdraw funds and limit access to liquidity, leaving banks in disarray and ruin” , said the narrator of the staged attacks, according to Reuters.

Participating Treasury officials considered a number of multilateral policies to respond to the crisis, including a coordinated holiday, debt repayment grace periods and other options.

“Today’s unique and groundbreaking exercise demonstrated the importance of coordinated global action by governments and central banks in the face of financial cyber threats,” Shira Greenberg, chief economist at Israel’s Ministry of Finance, told The Times. of Israel.

Simulated Cyberattacks: MSP Software Tabletop Exercises

Meanwhile, MSP software vendors have staged tabletop exercises — aka mock cyberattacks — within their own companies. Simulations typically involve key stakeholders – executives, board members, business unit heads, response professionals, etc. – which together manage the simulated attack and response.

An example: N-able CEO John Pagliuca in an interview with ChannelE2E described this tabletop exercise that software company MSP held in October 2021.

Additional information by Joe Panettieri.

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