Israel tests banking system with nationwide cybersecurity drill

The exercise aimed to strengthen recovery processes and ensure continuity of banking services in the event of an incident.

By Pesach Benson, TPS

Israel’s Banking Supervision Department conducted a nationwide cyber exercise on Thursday, testing the country’s financial system against major cyberattacks.

All supervised banking entities participated, alongside the National Cyber Directorate and the Center for Financial Continuity at the Ministry of Finance.

The drill simulated escalating cyber incidents, including attacks on supply chains, third-party vendors, and scenarios involving the potential use of artificial intelligence by attackers.

Cyber defense managers, chief information officers, and chief risk managers took part in discussions to test coordination and decision-making under pressure.

“Conducting cyber exercises is one of many tools used by bank supervision to improve the banking system’s readiness to deal with cyber events,” said the Supervisor of Banks.

“It is not possible to comprehensively prevent the materialization of cyber risk, but we strive to ensure that all relevant parties will act quickly and effectively when an event occurs, in order to maintain the stability of the system and public confidence.”

Officials emphasized that no system can guarantee total prevention of cyberattacks.

The exercise aimed to strengthen recovery processes and ensure continuity of banking services in the event of an incident.

“The broad commitment and involvement in the exercise indicates a high level of cooperation and an existing infrastructure for the resilience of banking corporations and credit card companies in Israel,” the Supervisor added, noting that such drills should be conducted periodically.

Cybersecurity experts said exercises like this allow institutions to identify weaknesses, improve communication, and refine recovery procedures.

The drill comes amid growing concerns globally over the increasing sophistication and frequency of attacks on financial systems.