The State Bank of Pakistan (SBP) is working to establish a specialized wing to curb the cyberattacks and online financial frauds in the financial sector, according to a special report issued by the SBP on “Financial Stability Review 2021”.
The division called Computer Emergency Response Team (FinCert) will be set up under the mandate of National Cyber Security Policy 2021 by the Ministry of Information Technology and Telecommunication.
It will supplement the flow of information in the robust and real-time environment among the stakeholders so that cyberattacks can be responded in an effective manner. The wing will also aid effective coordination between the industry members and the regulators.
The report noted that the industry should put its resources as whole into combating such attacks in case of a cyberattack on any one financial institution because any attack has implications for the rest of the system.
The banking watchdog has already issued instructions along with standardized formats to financial institutions to collect information on digital banking frauds or attempted frauds through call centers.
The collaboration at the international level is of immense importance in countering the risks arising from cyberattacks. These attacks are mostly of global in nature and collaboration among states, regulatory and supervisory authorities, law enforcement agencies, and institutions is vital for effectively managing and mitigating the risks arising from the attacks.
Banking Supervision Group
SBP has established a dedicated division in its Banking Supervision Group for continuous oversight and supervision of cybersecurity risks. The prime objective of SBP’s supervisory processes is to delineate supervisory activities for supervising the financial institutions according to their size, complexity, and riskiness. This risk focused approach, results in more rigorous oversight of FIs that pose enhanced risk to the financial system. The supervisory process for this purpose included both onsite and offsite assessments.
SBP is deploying its technology adoption policies in a phased manner. The purpose is to give sufficient time to FIs to develop and strengthen their cybersecurity systems before employing advanced technological systems in their business operations.
Cyberattacks Rampant in Post Covid-19 Times
The COVID-19 pandemic has caused a paradigm shift in customers’ preferences by exposing them to the benefits of digital finance products and services. Both financial institutions and policy makers are now increasingly realizing the potential of technology and digital finance, and they are endeavoring to explore their potential to achieve cost and operational efficiencies, enhance customer convenience, promote financial inclusion and facilitate documentation of the economy.
Source: Pro Pakistan