COVID-19 is causing deep concern on different interconnected dimensions, such as functionality of national health systems, social and economic imbalances. To safeguard the stability of the ‘’Sistema Paese’’, attention must be paid beyond physical boundaries of the territory, such as the digital cathedral of the cyberspace and its derivatives. According to Europol and Interpol’s reports 1, social distancing may lead to a positive correlation of cyberattacks addressed to smart working, home banking and e-commerce operations. Final targets may correspond to health infrastructures (e.g. Spallanzani’s case), bank assets (e.g. Intesa San Paolo and Monte dei Paschi) and hence euro-financial
stability. As illustrated in the figures below2, the trend highlights the importance in undertaking a risk assessment related to the new challenges imposed by cybercrime.
‘’Malicious use of ICT could undermine security and confidence endangering financial stability’’ was the prescient forecast stated by G20’s Finance Ministers in 2017. Such an alarm bell was resumed at the beginning of the pandemic by the President of the European Central Bank Christine Lagarde stating that banks must prepare for a significant growth in cyber-attacks related to the coronavirus financial support package, worth half-a- trillion euros3. COVID-19 will delineate a clear increase in cyber-attacks.
The consternation was also noted by the report issued by the Central Bank of Italy and the Institute for Insurance Supervision (IVASS) , calling to strengthen the IT governance.
- 4. Funds’ distribution network to companies and citizens is at risk: 51% of Italian companies have suffered of multiple cyber -attacks in early 20205, and the trend may increase due to lockdown
COVID-19 is tremendously shaking global and national economies. Disruptions in financial intermediations may drastically increase the economic impact of the pandemic by striking immediate responses issued by Governments through massive credit guarantee s. Policymakers must be susceptible to such digital incidents: vulnerabilities intersecting the ‘’financial network’’ and ‘’cyber network’’.
Cyber criminals have found innovative measures to exploit vulnerabilities posed by the information and communication technology (ICT) like phishing, malspam, ransomware, remote desktop protocol targeting and distributed denial of service attacks 6 targeting both citizens and financial organizations (and employees ’ personal devices7). Cyber threats may cause risk in the financial sector leading to leakage of data bank, insecurity of data’s cia trial (confidentiality, integrity, availability) and miscarriage of infrastructure’s functionality such as transport and transactions.
In a similar health crisis scenario, intercepting failures in financial resources’ allocation within the cyber-space may prevent social turmoil. In fact, efficiency in payment transactions, loan-scheme programs and automatically in financial stability, is a fundamental side of human security. Policymaker s must keep in mind that such a financial instability accompanied by the recent economic insecurity, may cause to certain extent a rapid breakdown of trust towards politics and markets. Such a scenario may threaten both Italian and European stability, in conjunction with the rise of national populism . Thus, cyber hygiene and physical hygiene must be applied in conjunction, in order to prevent dramatic consequences.
F.Pagano
1 Centro Studi Internazionali – Report 14/4/2020
2 CLUSIT – Report 2020 on ICT Security in Italy
3 World Economic Forum Report on COVID-19
4 Note Covid-19 17 Aprile 2020 – GRUPPO DI COORDINAMENTO PER LA SICUREZZA CIBERNETICA BANCA D’ITALIA – IVASS
5 EY Global Information Security Surveys (GISS) 20206 Centre for Internet Security – Resource Guide for Cybersecurity During the COVID-19 Pandemic
7 KPMG Reports 2020