Oman’s pivotal financial sector, while having been spared any damaging cyber-attacks in recent years, continues to be a potential target for cyber-criminals, particularly as the country embraces fintech and electronic payment systems in support of its digital transformation, the Central Bank of Oman (CBO) has warned.
The cyber-risk advisory came in the apex bank’s Financial Stability Report 2023 issued here last week. It cited in this regard a staggering 46 per cent spike in cyber-attacks targeting financial institutions globally in 2022 (versus figures for 2021). The surge, it noted, underscores the worldwide banking and financial industry’s dominant appeal as a target for international cyber gangs, given the potential for huge rewards if the attacks are successful.
“This renewed surge in cyber-attacks, especially targeting financial institutions, could negatively impact customer trust in digital financial services and the financial sector as a whole,” the Central Bank said in its report.
“Oman has also not experienced any significant disruptions from cyber risks in recent times. However, like any other jurisdiction, the Omani financial sector is vulnerable to such risks. Therefore, cyber-security remains a top strategic priority for CBO,” it stressed.
The renewed warning comes amid an exponential increase in the usage of electronic payment channels and fintech apps for a growing variety of banking, retail and e-commerce related transactions. This growth builds on a trend that first gained major traction during the Covid-19 pandemic.
To help meet the soaring demand for e-payment solutions, the Central Bank announced recently in June the launch of a new Real Time Gross Settlement System (RTGS), which enables the processing and settlement of high-value payments exchanged between market participants seamlessly and around-the-clock.
Reflecting the robust growth in the uptake of e-payment options, the volume of transactions processed by the CBO’s Payment and Settlement Systems (PSS) climbed a steep 37.6 per cent to 275.1 million transactions in 2022, up from 199.9 million in 2021. Likewise, the aggregate value of these transactions jumped 15.6 per cent to RO 206.6 billion in 2022, up from RO 178.8 billion a year earlier.
Retail payments made via digital channels also ballooned 37.8 per cent to 274.4 million in 2022, up from 199.2 million in 2021. The corresponding aggregate value of these transactions increased 13.1 per cent to RO 27.3 billion in 2022, driven by a sharp rise in the use of e-payment services, the CBO noted.
In concluding, the Central Bank pledged to stay vigilant in in the face of the risks from cyber-attacks even it weighs the roll-out of new digital products, notably Central Bank Digital Currencies (CBDCs). A task force has been commissioned to study the introduction of CBDCs, while separate groups are focused on other digital innovations, it said.
“This proactive approach allows the CBO to equip itself with the expertise required to navigate the evolving landscape of digital finance and stay prepared to take appropriate action when necessary,” it added.
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