UAE Central Bank conducts cyber attack simulation to test the sector’s preparedness

Cyber attacks on financial institutions surged 238% between February and April last year

Cyber security is a major concern for Arabian Gulf countries and a growing consideration in their budgets. Reuters

The Central Bank of the UAE and the UAE Banks Federation conducted a cyber attack simulation exercise to check how well equipped the country's banking sector is to counter potential cyber threats.

During the drill, the participating banks were exposed to real-time cyber attack scenarios to assess and apply crisis management strategies, the regulator said in a statement on Sunday.

The exercise was part of the CBUAE’s mandate to ensure the stability and resilience of the UAE’s financial system through the implementation of sophisticated processes and techniques, the central bank added.

The techniques aim to combat the threat of advanced cyber attacks and protect the banking system, the CBUAE said.

Cyber attacks on financial institutions surged 238 per cent globally from the beginning of February to the end of April last year, as more consumers switched to online banking at the peak of coronavirus-induced lockdowns, according to Massachusetts-based cyber security firm VMware Carbon Black.

A 2019 report by Accenture revealed that the average annualised cost of cyber crime for financial organisations worldwide increased to $18.5 million - the highest of all industries included in the study. It was almost 40 per cent higher than the average cost of $13m per firm across other industries.

The central bank has urged lenders to bolster their defences against cyber attacks as they continue to transform digitally.

The CBUAE said it will also develop cross-sector collaborations to enhance the resilience and protect the national financial system from threats.