Cyber attack on payment systems could cost $3.5 trillion loss to the world

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Have you ever contemplated the potential ramifications of a highly sophisticated cyberattack targeting global payment systems? Lloyds of London, a prominent provider of insurance services, has undertaken an analysis that suggests the world could face staggering losses of up to $3.5 trillion in the event of a global payment system outage resulting from a cyberattack.

In a collaborative effort with the Cambridge Centre for Risk Studies, Lloyd’s has further projected that the United States could bear the brunt of this financial blow, with an estimated loss of $1 trillion over a five-year period due to such disruptions. Additionally, China is anticipated to face a loss of $450 billion, while Japan may experience losses amounting to $260 billion over the same time frame in the event of a severe system breach.

So, how can these risks be mitigated effectively?

The most prudent approach to addressing this concern involves proactive network protection and fostering international cooperation by sharing critical information on cyberattacks and threats via a unified platform. Simultaneously, it is essential to maintain a vigilant stance towards nations posing a significant threat to online service providers and national infrastructure.

Acknowledging the gravity of the situation, the Cybersecurity and Infrastructure Security Agency (CISA) of the United States has taken a significant step by unveiling a joint guide for securing software. This initiative stems from collaborative efforts involving 17 U.S. and international partners who have pooled their expertise and guidance to enhance cybersecurity measures.

In line with these developments, Jen Easterly, the Chief of Cybersecurity in the United States, has issued a call to action for companies to address vulnerabilities in their technology. These vulnerabilities, if left unattended, could provide fertile ground for cyber-criminals to perpetrate scams and launch malicious attacks.

Addressing an audience at the Singapore International Cyber Week, Ms. Easterly expressed her aspirations for technology that prioritizes safety and security, benefiting both individuals and businesses. Achieving this goal hinges on minimizing vulnerabilities and ensuring timely fixes, thereby leaving cyber-criminals and adversaries with no room for exploitation.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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