Because of the data's lack of indication that the risk is about to go down, the IMF has called for increased cross-border cooperation to safeguard the stability of the world financial system.

Since the epidemic, the number of events has more than doubled, and the amount of extreme losses has more than tripled to $2.5 billion.

Indirect losses, such harm to one's reputation and security updates, are also "substantially higher," according to the report.

Because of the extent of the losses incurred by insurers, asset managers, and banks, the IMF thinks that cyberattacks pose an increasing risk to the stability of the financial system.

 

"Attacks on financial companies comprise nearly a fifth of the total, with banks being the most vulnerable," the study's authors, Fabio Natalucci, Mahvash Qureshi, and Felix Suntheim, stated.

"Although cyber incidents have so far not been systemic, events at major financial institutions can pose a serious threat to macro-financial stability through loss of confidence, disruption of critical services and due to technological and financial interconnectedness," according to the study's authors.

Additionally, according to the IMF, banks in developed economies are more vulnerable than those in developing nations.

For instance, JP Morgan, which is the biggest bank in the world in terms of assets, disclosed that it receives up to 45 billion cyberthreats every day and that it has to spend $15 billion annually on technology to protect against these attacks.

To handle the dangers presented by cyberattacks, the IMF is urging increased cross-border collaboration.

"Given the global nature and systemic implications of cyber attacks, cross-border coordination is crucial to mitigate cyber risks," the paper adds.