On Tuesday, Germany’s financial regulator Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin) warned of a huge risk of cyber attacks following the recent invasion of Ukraine by Russia. According to the regulator these risks are already very present. For months now, the regulator has been giving warnings about the risk of cyber attacks but its recent statement not only reiterates what the regulator has been saying for months, but it also shows a sense of worry.
BaFin’s President, Mark Branson said that “The war has made cyberattacks on the German financial sector more probable.” While speaking at an annual press conference during his first year in office, the President spoke about the direct effects of the war and how its resulting sanctions are manageable, adding that second and third-round effects could create huge challenges. He warned that a sudden and hefty increase in interest rates could present difficulties for banks.
The ongoing Russia-Ukraine crisis has caused a series of challenges for businesses, companies, and governments. More than a handful of global companies have pulled out from Russia as a result of the war. Companies have reported challenges and losses as a result of the war. For example, global video streaming platform Netflix reported that it lost 200,000 in the first quarter of this year. Apart from the internal challenges such as password sharing by households that the company blamed for its woes, it also did mention halting its service in Russia as part of the reasons for its losses. Netflix said it’d have added about 50,000 subscribers in Russia alone if it didn’t pull out.
The European Union also issued sanctions on Russia. These sanctions may affect Russia the most, but other countries and businesses are also affected by these sanctions.
With cyber-attacks on Germany’s financial sector more probable, the government has to stand up to ensure that it doesn’t become a victim of the ongoing war between Russia and Ukraine.