Bank of England and IMF heads warn of cyber threat to trust — The Guardian

Bank of England Governor Andrew Bailey and International Monetary Fund Managing Director Kristalina Georgieva, during the IMF and World Bank meetings in Bangkok, Thailand, warned that the rise in cyberattacks could weaken trust in the financial system. The Guardian reports.

Trust in technology and money

At a panel dedicated to online fraud, Bailey said that the key issue in the discussion about artificial intelligence is trust in technology and human control over it. He stressed the importance of technology for the modern financial system and noted that society cannot function without trust in money.

Georgieva, in turn, said that the scale of cyber fraud could force people to abandon the services of the formal financial system. According to her, this threat is particularly acute for people on the periphery of the financial system: a loss of trust may deprive them of the confidence to use financial services.

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The role of technology platforms

Bailey also noted that fraud is increasingly taking place through social media and apps, rather than only through traditional financial channels. He called on major technology companies to join efforts to counter this problem and to recognize their responsibility in solving it.

The Bank of England governor believes that the technologies used by cybercriminals should also be used to protect the financial system. On the eve of the event, the IMF named the likelihood of a major cyberattack as one of the factors increasing threats to global financial stability. Among other risks, the fund mentioned high borrowing costs and a possible fall in the value of shares in artificial intelligence-related companies.

The event also unveiled a new set of international principles for preventing cyber fraud in financial institutions called the Bangkok blueprint.