Guardian: Bank of England and IMF bosses issue stark warning on cyber threat to trust

• The IMF highlighted that cyber fraud could drive people to opt out of formal banking, especially those on the financial fringes.
• A new set of international principles for avoiding cyber fraud in financial institutions, the Bangkok blueprint, was launched at the panel.

At the IMF and World Bank meetings in Bangkok, Bank of England governor Andrew Bailey and IMF managing director Kristalina Georgieva warned that increasing cyber-attacks and online fraud could erode public trust in the financial system. Bailey emphasized the role of technology in finance and the need for human control to maintain trust.

Georgieva noted that the scale and cost of cyber fraud could push people, especially those on the margins, to abandon formal banking for cash alternatives. The panel also launched the Bangkok blueprint, a new set of international principles aimed at helping financial institutions avoid cyber fraud.

• Review the Bangkok blueprint's international principles for cyber fraud prevention and assess current controls against them.
• Evaluate exposure to fraud risks transmitted via social media platforms and apps, as highlighted by Andrew Bailey.
• Monitor the IMF's global financial stability threat level, which now includes the risk of a big cyber-attack.

This story underscores the growing threat that cyber-attacks and online fraud pose to the integrity of the financial system. As highlighted by both the Bank of England and the IMF, a loss of trust could drive individuals—especially those already wary of formal banking—out of the regulated sector, increasing the risk of illicit finance. Compliance officers must adapt to evolving fraud typologies, including those leveraging social media, and align with new international standards like the Bangkok blueprint to maintain trust and resilience.