One major cyber attack on a global bank could cripple entire system: IMF

A cyber attack on just one major financial institution could disrupt the entire global monetary system, the International Monetary Firm has warned.

New analysis from the IMF found that many national financial systems are "not ready" to manage a major cyber attack, and that international coordination between banks is "weak".

Authors Jennifer Elliot and Nigel Jenkinson theorised that one successful attack would have a cascade of negative implications, including homebuyers losing houses and investors demanding their money back.

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"Given strong financial and technological interconnections, a successful attack on a major financial institution, or on a core system or service used by many, could quickly spread through the entire financial system causing widespread disruption and loss of confidence," the authors wrote.

"Transactions could fail as liquidity is trapped, household and companies could lose access to deposits and payments.

"Under extreme scenarios, investors and depositors may demand their funds or try to cancel their accounts or other services and products they regularly use."

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A move away from bricks-and-mortar bank branches and into mobile banking apps has also exposed a weak spot for many financial institutions, who are now vulnerable to potentially millions of "hacking" opportunities.

"Hacking tools are now cheaper, simpler and more powerful, allowing lower-skilled hackers to do more damage at a fraction of the previous cost," Elliot and Jenkinson write.

"The expansion of mobile-based services (the only technological platform available for many people), increases the opportunities for hackers.

"Attackers target large and small institutions, rich and poor countries, and operate without borders."

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To combat widespread cyber attacks, the authors point to new research that suggests six major strategies, including sharing information across national borders and beefing up criminal offences for cyber attackers.

In 2019 alone, Australians lost over $634 million to scams in just 12 months.

It's estimated the cost of cybercrime to the Australian economy is as high as $29 billion every year.

The Australian Cyber Security Centre noted that in one 12 month period it recorded almost 60,000 cybercrime reports at an average of 164 per day or approximately one report every 10 minutes.