Cybercrime as a Key Operational Risk of the Payment and Settlement Infrastructure of the Global Financial System and Approaches to Its Regulation in the Eurasian Economic Union

Victor Ya. Pishchik () and Peter V. Alekseev ()
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Victor Ya. Pishchik: Financial University under the Government of the Russian Federation, Moscow 125993, Russian Federation
Peter V. Alekseev: Financial University under the Government of the Russian Federation, Moscow 125993, Russian Federation

Finansovyj žhurnal — Financial Journal, 2021, issue 3, 54-66

Abstract: One of the key areas in the formation of a single financial market within the Eurasian Economic Union (hereinafter, EAEU or Union) is the development of a single payment space (SPS) of the Union. In the context of growth and transformation of the risks of the payment and settlement infrastructure (PSI) of the global financial system (GFS) (sanctions, systemic, operational and other risks), the problem of effectively neutralizing their impact on the PSI of the EAEU countries is highly topical. The article clarifies the conceptual apparatus associated with the transformation of risks for the PSI of the GFS, and carries out their systematization. Sources of operational risk of the GFS’s PSI, including the threat of an increase in cybercrime, are analyzed. The authors assert that the main type of operational risk for the PSI of the GFS in the future will evidently be cyberattacks using trojans, ransomware viruses and phishing, as well as blocking user access to Internet sites using DDoS attacks. Nowadays, the number of DDoS attacks in Russia has been growing for several years in a row, and this growth may intensify in 2021 due to a number of factors set out in the article. It is indicated that, in Russia and other EAEU countries, growth in cybercrime is one of the main threats to the stable functioning of the national PSI as well as credit and financial systems in general. In this regard, the article substantiates the need to develop regional cooperation on cybersecurity issues within the EAEU using the experience of the European Union, where this issue is paid very serious attention. Besides, it is advisable to build up international cooperation between the countries of the world within the UN in order to enhance the cybersecurity of the GFS’s PSI and ensure the successful development of the SPS in the EAEU.

Keywords: Eurasian Economic Union; single payment space; payment and settlement infrastructure; global financial system; risk transformation; cybercrime; cybersecurity (search for similar items in EconPapers)
JEL-codes: F36 G15 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:fru:finjrn:210304:p:54-66

DOI: 10.31107/2075-1990-2021-3-54-66

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