RBA, spy agencies fear Australia's financial system is deeply exposed to cyber shocks
The central bank's deputy governor and an official from the Australian Signals Directorate have both warned that geopolitical tensions are exacerbating the risks to financial system stability.
The Reserve Bank of Australia (RBA), the Department of Home Affairs, a national spy agency, and National Australia Bank have all warned that the country’s payment system looks increasingly vulnerable to cyberattacks during a period of significant geopolitical upheaval.
Speaking on Tuesday, RBA assistant governor Brad Jones said Australia’s Council of Financial Regulators (CFR) – which also includes ASIC, APRA and Treasury – had become increasingly concerned about the risk of the national payments system could be knocked out.
“The potential for external shocks to threaten the provision of critical financial services is rising, and the risk of coordination failure is larger for adverse geopolitical scenarios,” Jones told the Australian Payment Networks Summit in Sydney.
“The RBA and the Australian Prudential Regulation Authority are working with banks, Australian Payments Plus and AusPayNet to enhance existing contingency capabilities so that payment services can continue to operate, even if in a reduced form, in the event of a significant shock like a major institution ‘going dark’ for some time.”
