MoneyGram International has announced that it is actively working to restore its systems following a detected cybersecurity incident that has disrupted its operations. The financial services company confirmed the MoneyGram cyberattack and stated that it is collaborating closely with external cybersecurity experts and law enforcement to minimize the impact.
In a statement on social media platform X (formerly known as Twitter), MoneyGram assured customers that progress is being made in bringing key transactional systems back online. “Our dedicated team is actively working around the clock on resuming normal business operations,” the company stated. “Once all systems are fully operational, transactions currently pending will be available to customers. We apologize for any inconvenience and will continue to share relevant updates as available.”
The MoneyGram cyberattack followed a series of social media posts from MoneyGram. Just three days prior, on September 21, the company acknowledged a network outage that was affecting connectivity across several of its systems. “We recognize the importance and urgency of this matter to our customers,” MoneyGram stated, highlighting their commitment to understanding the nature and scope of the ongoing issue.
By September 23, MoneyGram had identified the incident as a cybersecurity breach affecting various systems. The company noted, “Upon detection, we immediately launched an investigation and took protective steps to address it, including proactively taking systems offline which impacted network connectivity.” This rapid response in case of MoneyGram cyberattack highlights the company’s awareness of the critical nature of the situation, especially considering the risks associated with the recent MoneyGram cyberattack.
The Threat of Cyberattacks on the Financial Sector
Cybersecurity incidents are not uncommon in the financial sector. For instance, previous attacks have caused significant disruptions, as seen with the ransomware attack on C-Edge Technologies, which resulted in the shutdown of payment services for over 300 small banks in India. Such incidents highlight the vulnerabilities faced by financial institutions, which are often prime targets for cybercriminals due to the sensitive data and large sums of money they handle.
According to research from the International Monetary Fund (IMF), the frequency of cyberattacks has more than doubled since the onset of the pandemic. While historical direct losses from these incidents have often been modest, the overall financial toll can be severe. Notably, Equifax, a U.S. credit reporting agency, paid over $1 billion in penalties following a massive data breach in 2017 that affected approximately 150 million individuals.
The potential risks associated with cyber incidents are growing. The IMF reports that extreme losses from cyberattacks have quadrupled since 2017, reaching approximately $2.5 billion. Indirect costs, such as reputational damage and the need for enhanced security measures, can far exceed the direct financial losses, emphasizing the high stakes involved in managing cybersecurity effectively.
The financial sector is particularly vulnerable to cyber risks, with attacks on financial institutions accounting for nearly 20% of all incidents. This category includes banks, which are often the most targeted due to the sensitive nature of their operations. A successful cyberattack could erode public confidence in the financial system, disrupt essential services, and lead to significant spillover effects affecting other institutions.
A severe incident, for example, could trigger market sell-offs or even runs on banks. Although no major “cyber runs” have been reported so far, there have been modest deposit outflows at smaller U.S. banks following cyberattacks, indicating a growing unease among customers.
Given the escalating cyber risks posed by ongoing digitalization and geopolitical tensions, financial firms must enhance their cybersecurity policies and governance frameworks. However, many organizations, particularly in emerging markets, lack robust cybersecurity strategies. An IMF survey revealed that only half of the countries surveyed had established national, financial sector-focused cybersecurity frameworks or regulations.