Lloyd’s Reports Potential Global Consequences of Payments System Cyber Attack

Insurance marketplace Lloyd’s of London reported that in the event of a large-scale cyberattack on the systemic payment system, the global economy may face a consequence in the form of damage for $3.5 trillion.

Lloyd’s Reports Potential Global Consequences of Payments System Cyber Attack

This organization has published a systemic risk scenario that simulates the result of a hypothetical but realistic attack on a large financial services payment platform in the digital space. In this case, the loss of money will not be the only consequence. A cyberattack will also cause a global disruption in the work of international business.

In the potential scenario of global financial crime in the digital dimension, the countries that will suffer the most damage are the United States, China, and Japan. In the event of a large-scale cyberattack, the United States will face a loss of $1.1 trillion. China is losing $470 billion under a hypothetical scenario. In the case of Japan, the amount of probable damage is $200 billion.

The recovery time after a cyberattack for each country is an individual issue, the solution of which depends on the structure of the economic system of the state, the level of impact of the incident, and sustainability.

The risk of such a scenario is repeatedly mentioned in the Bank of England’s review of systemic threats for the second half of this year. In a survey conducted by this financial institution, 80% of respondents paid attention to this risk, which is the largest indicator in the history of such studies.

Against the background of the perception of cyber attacks by businesses and governments as one of the main threats, the insurance market is growing, the volume of gross premiums of which in 2022 was estimated at just over $9 billion, and by 2025, according to forecasts, could reach $25 billion.

As we have reported earlier, Amazon, Microsoft and India Authorities to Fight Fraud.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.