Malaysia bank disruptions coincide with surge in cyberattacks, says expert

KUALA LUMPUR: Malaysia's banking sector faced disruptions coinciding with a spike in cyberattacks, according to cybersecurity expert Siraj Jalil. Real-time threat maps revealed increased cyberattack activity against the country's infrastructure, including telecommunications and banking systems. Prior incidents in Japan, Paraguay, and France demonstrated the severe impact cyberattacks can have on banking institutions.

In Japan, simultaneous attacks on 128 banks led to significant system disruptions. Siraj noted the swift response from the Malaysian banking sector, with systems restored to normal quickly. The National Cyber Security Agency raised Malaysia's cybersecurity threat level from low to moderate, emphasizing the need for better preparedness.

The impact of an attack depends on the institution's readiness, including workforce capability, hardware, and security systems. Despite the possibility of data breaches or more severe disruptions, banking institutions must comply with cybersecurity standards under Bank Negara Malaysia's Risk Management in Technology Policy Document and the Cyber Security Act.

Cybersecurity expert Datuk Dr Amirudin Abdul Wahab cautioned that the true extent of the intrusions remains unclear, urging further digital forensic investigations to determine if core banking systems, customer databases, and financial transaction infrastructure have been compromised.