German financial watchdog warns of ‘very big’ risk of cyberattacks

© Reuters. FILE PHOTO: The logo of Germany’s Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside an office building of the BaFin in Bonn, Germany, April 15, 2019. REUTERS/Wolfgang Rattay

FRANKFURT (Reuters) – Germany’s financial regulator BaFin on Tuesday warned of a “very big and very present” risk of cyberattacks in the wake of Russia’s invasion of Ukraine.

BaFin has long warned about cyber risks, but the statements mark a harsher tone.

“The war has made cyberattacks on the German financial sector more probable,” BaFin President Mark Branson said.

Branson, speaking at an annual press conference during his first year in office, said that direct effects of the war and its resulting sanctions are manageable but that second- and third-round effects could create problems.

He warned that a sudden and hefty increase in interest rates could present difficulties for banks.