Goldman Sachs Says Cyberattacks Could Hurt the Economy

Goldman Sachs Says Cyberattacks Could Hurt the Economy

( – As the Russian invasion of Ukraine continues, the United States and its Western allies have sunk a deep bite into the Russian economy through strong economic sanctions and cutting off Russia’s oil supply to fund the war. In early March, Russian President Vladimir Putin warned Western bloc countries not to become involved, and they would face consequences unlike any before if they did.

Most Russian experts say Putin doesn’t want a direct confrontation with the West. He doesn’t need military action to hurt the United States. Instead, cyberattacks could be his primary weapon. Research suggests Russia is responsible for two-thirds of the world’s state-sponsored cyberattacks. While there are no reported Russian attacks as of Thursday, March 9, the risk grows every day one could happen. Goldman Sachs says a cyberattack could hit the economy hard.

Goldman Chief Economist Jan Hatzius said the US dependence on digital technology increases the risk of a disruptive cyberattack that would be nearly impossible to defend against entirely. The International Monetary Fund said a significant attack on US banks could cost $100 billion annually. Federal Reserve Chairman Jerome Powell painted a bleaker picture when he stated a cyberattack on the US banking system could cause a market collapse on par with the 2008 recession.

While Goldman Sachs warns countries could inflict significant harm on one another through cyberwarfare, President Joe Biden said the US cyber defenses are ready to respond. Significant investments over the last decade have made the US less vulnerable than other countries.

So, are you concerned about a cyberattack on US banking, electric grid or municipal water systems?

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