Cyberattacks have more than doubled since the pandemic, leaving a trail of destruction in their wake. While companies have historically suffered relatively modest direct losses from cyberattacks, some have experienced a much heavier toll.

One notable example is the US credit reporting agency Equifax, which paid more than $1 billion in penalties after a major data breach in 2017 that affected about 150 million consumers. The breach, which occurred over the course of several months, exposed sensitive personal data, including social security numbers, dates of birth, and addresses.

The consequences of the breach were severe, with many consumers experiencing financial difficulties as a result of identity theft. The breach also led to a Congressional investigation and a number of class-action lawsuits against the company.

The Equifax breach is just one example of the potential consequences of a large-scale cyberattack. As companies increasingly rely on digital technologies to operate their businesses, the risk of cyberattacks grows. Cybercriminals are becoming increasingly sophisticated in their tactics, using advanced techniques such as phishing, malware, and ransomware to infiltrate company systems.

According to recent data, the number of cyberattacks has more than doubled since the pandemic, with many attacks targeting companies in the financial sector. This has led to concerns about the potential impact on financial stability, as companies struggle to protect themselves from increasingly sophisticated cyber threats.

So, what can companies do to protect themselves from cyberattacks? Experts recommend a number of steps, including implementing robust cybersecurity measures, such as firewalls and encryption, as well as educating employees about the risks of cyberattacks and the importance of strong passwords and good cybersecurity hygiene.

Companies should also have incident response plans in place in the event of a breach, including procedures for notifying affected consumers and providing support and resources to those affected.

Ultimately, protecting against cyberattacks requires a proactive approach, with companies staying one step ahead of cybercriminals by staying informed about the latest threats and taking steps to mitigate their risks. By taking these steps, companies can help protect themselves and their customers from the growing threat of cyberattacks.

The increase in cyberattacks has also led to increased scrutiny of companies who handle personal data and have major implications for financial stability because when billions of people across the world save and invest their money in these corporations, it reflects the confidence they have in these institutions to safeguard their money and protect them from different types of risks, both physical and financial, and digital.

While many corporations think of cyber threats as purely existential, a number of factors suggest otherwise. For example, big-box hackers often use the same tactics and malware for high-stakes cybercrime targets as they use against top-secret government entities. Also, the increasing interconnectedness of hackers has driven a surge in the number of cyber attacks over the past several years and this interconnectedness is sometimes linked to some kind of supply chain which ensures the spread of Cyber warfare techniques.

Financial institutions are considered one of the primary targets of cyberattacks, given the high-value money that resides within the databases of financial institutions such as banks, exchanges, and stock brokerages. As we witnessed in the Equifax breach, banks that believe they do not have sensitive assets that attackers would necessarily target may still be vulnerable to attack because attackers mostly seek the sensitive assets like Social Security numbers or personal tax returns of their clients which can be further used to commit high-stakes financial crimes such as loan sharking, online money laundering, or other crimes and so this makes the argument in favor that each dollar is risked in one way or another and any neglect on the part of the respective financial institution in handling their affairs ultimately ends in the vulnerability of user information.