Prioritise strengthening banks' cyber security

Concerns are mounting over the ability of Bangladesh Bank and other financial institutions to counter escalating cyber risks. The World Bank and the International Monetary Fund have warned that the financial sectors of South Asian countries-including Bangladesh, India, China, Sri Lanka, and Pakistan-are becoming increasingly vulnerable to cyber threats.

With the rise of technology use in the financial sector, cyber risks have also surged. In recent years, the rapid growth in technology usage within Bangladesh's banking activities has not been matched by cyber security. A study by the Bangladesh Institute of Bank Management (BIBM) reveals that 90 per cent of banks in the country lack comprehensive IT governance. Specifically, 8.0 per cent of banks have taken no steps towards IT governance, 60 per cent lack clear targets, and only 22 per cent have partially implemented governance measures.

The report points to insufficient investment and a shortage of skilled personnel as the primary reasons for the banking sector's insufficient IT infrastructure and security. Shortcomings in IT security are attributed to outdated software, a lack of skilled personnel, inadequate infrastructure, absence of long-term goals, poor planning, and underfunding in IT sector.

BIBM's study also showed that 28 per cent of banks in the country are unprepared to address cyber risks. The 2016 Bangladesh Bank heist, in which hackers stole $80 million of reserves from its account at the Federal Reserve Bank of New York, highlighted these vulnerabilities.

Cyber attacks pose a severe threat to the global economy, causing $450 billion in annual losses and increasing 200-fold over the past five years. Despite Bangladesh's past financial losses due to cyber attacks, another disaster may strike. It is hoped that all financial institutions in the country will take necessary steps to obviate cyber attacks and safeguard the sector's integrity.

Shibly Sadik

Student of North South University

BBA Department

E-mail: [email protected]