FRANKFURT, July 7 (Reuters) – The European Central Bank on Tuesday gave euro zone banks four months to draw up plans to counter AI-enabled cyber threats that could undermine confidence in the financial system and disrupt payments.
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“These developments have potentially profound implications for the confidentiality, integrity and resilience of banks’ information and communication technology (ICT) systems,” the ECB said in a letter to bank chief executives.
The euro zone’s top banking supervisor also urged lenders to modernise ageing technology, improve cyber hygiene and strengthen crisis-management, recovery and information-sharing arrangements.
Banks have until October 31 to submit their plans. To free up resources, the ECB has postponed a separate IT survey and may adjust inspections and other supervisory work.
In a warning published alongside the ECB’s letter, the European Systemic Risk Board said large-scale cyber disruptions could erode trust in financial institutions and even trigger runs on companies or countries perceived as less secure.
“The ESRB considers these developments to be a source of systemic risks to the financial system,” said the ESRB, a European Union body that issues recommendations to other authorities.
To illustrate the risks, the ESRB outlined scenarios ranging from a gradual loss of confidence in smaller banks to state-backed espionage and coordinated attacks on payments, clearing and settlement systems, potentially amplified by misinformation campaigns.
It said incidents could spread quickly through common technology providers and shared software used across the financial sector.
Reporting by Francesco Canepa. Editing by Mark Potter
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