Australia's Banking System on High Alert: Cybersecurity Risks Surge

The Australian Prudential Regulation Authority (APRA) warns of increased cyberattack risks to the country's banking system due to rising geopolitical tensions. APRA plans to intensify its cybersecurity measures, highlighting vulnerabilities in financial institutions. The use of artificial intelligence and recent cyberattack data further underline the growing threats.

Australia's banking system is under increased threat from cyberattacks, according to the Australian Prudential Regulation Authority (APRA). The regulator cited escalating geopolitical tensions as a major factor contributing to the heightened risk.

John Lonsdale, APRA chair, announced plans to boost the agency's collaboration with banks to mitigate these risks. The annual report revealed vulnerabilities in financial institutions' operational systems, exacerbated by potential technology outages and malicious attacks.

Additional concerns include the growing role of artificial intelligence in the banking sector and historical data showing widespread cyberattack effects on Australians. APRA's formation of its first geopolitical risk team in 2024 underscores the urgency of addressing these burgeoning threats.

(With inputs from agencies.)