Lloyds warns cyber-attack would cost Australian economy $16 billion

Out of 301 global cities, Sydney is the 12^th most vulnerable for cyber-attacks, placing US$4.86 billion (A$6.33 billion) of economic growth at risk. The ranking is based on Lloyds and Cambridge University’s newly released City Risk Index 2015-2025.

Five other Australian cities are in the index, based on risk ranking. Sydney was followed by Melbourne, Brisbane, Perth, Adelaide and Canberra. The index measures potential GDP risk in 301 global cities from manmade and natural threats.

Across the 301 cities, the index estimates total GDP at risk because of a cyber-attack is at US$4.56 trillion (A$5.93 trillion). Cities that topped the index are Taipei, Tokyo, Seoul, New York, Hong Kong, Shanghai ad London.

The index says because of the increase in global interconnection and a world dependent on technology, besides cyber-attacks, there are other remaining threats in the form of human pandemic, plant epidemic and solar storm. However, a market crash threat would represent a quarter of potential losses among the 301 cities.

Inga Beale, global chief executive of Lloyds, says the constant threat of cyber-attacks is critical for businesses of all sizes. “It's not just for banks to worry about — it impacts retailers, travel and hospitality firms, education and healthcare providers, and any business with proprietary information worth protecting,” she explains.

Australia has felt the threat following a recent cyber-attack on some government websites. According to the Australian Cyber Security Centre (ACSC), 1,095 cyber security incidents were considered serious enough to trigger an operational response.

However, ZDNet points out that while Australia released its Cyber Security Strategy in April, it only made a bureaucratic structure that could lead to increased cooperation. In contrast, Britain, which released its National Cyber Security Strategy 2016-21 on Tuesday, is better.

The British strategy includes commitment to developing the domestic cyber security industry, the education and training sector, and potential for export as well as higher focus on international cooperation. The strategy “jumps straight into outlining well-argued technical architecture to defend the nation’s networks.”

The tech website says Australia’s weaker strategy is embarrassing since its ACSC is almost two years, while Britain’s National Cyber Security Centre is just one month old.