Ever since the global pandemic highlighted the weaknesses of paper-based international trade systems, huge efforts have been made to embrace digitisation of documents and digitalisation of systems. Now, international efforts are focussed on producing standards through MLETR, the Model Law on Electronic Transferable Records.
Whilst countries are at different stages in their digital trade journeys, international efforts are being made, including ratification through the pledging to transition to paperless, more secure digital trade. However, the move to digital may also expose international trade to cyberthreats, along with new challenges regarding denial of access, confidentiality breaches, data theft, contract manipulation and a breakdown of trust.
Major Cybersecurity Threats
The most common cyberthreats in international trade include:
Form-Jacking
Where JavaScript is used to steal information such as payment information
Supply Chain Hacks
Exploiting 3rd party services to attack a final target.
Ransomware
Encrypting valuable data and demanding money to provide access.
Global Cooperation on Cybersecurity
Over 50 countries have now adopted standard cybersecurity policies and regulation, mainly around payments, but which also cover international trade. Many of these policies call for increased international cooperation, promoting standardized policies, to ensure consistency between jurisdictions. Such cooperation will be crucial to developing robust mechanisms to defend against the growing number of cyberthreats.
How International Trade Policies Can Improve Cybersecurity
Data Access and Information Sharing
The power of AI and data analytics are key elements in the armoury of companies to detect and prevent cyberattacks. However, for such mechanisms to be effective they need to access information islands, where data is held in multiple locations, formats, languages, all with differing access levels. Normalising data, finding commonality, and promoting data sharing with trusted parties will help strengthen the system for all.
Standards for Cybersecurity & Compliance Certification
Organizations such as ISO and ICC are already developing a number of standards with guidelines as “dictated approaches” and more “frameworks for managing risk”, thus making them widely applicable. Trade policies that incorporate these standards can ensure robust protections, with access to experts in case or dispute. Compliance certification for these standards can further help consumers, businesses and government agencies have more trust in the system, while also ensuring that standards are correctly implemented.
A Risk-Based Approach
The Organisation for Economic Co-operation and Development (OECD) is also taking a lead for its 38 members in encouraging the adoption of a risk-based approach to cybersecurity. Taking a similar approach to international trade policy too, will help to create a system where risks can be reduced to an acceptable level without impeding the flow of trade.
The Dark Side
Rather than opening data access, and working with such initiatives as Free Trade Agreements, there has been a steady increase in nationalistic, isolationist and protectionist policies from some countries, culminating in an increase in restricted trade, citing national security.
This is potentially a major risk factor as the world progresses towards a more open digitally enabled international trade system. Countries should encourage working together to mutually ensure that trade partners enjoy sufficient, cost-effective and efficient access to each other’s markets.
Supporting Cybersecurity in International Trade
At Euro Exim Bank, our next-gen technologies and skilled individuals manage the security of our extensive trade infrastructure. Blockchain technology is also a focus area for us as it is one of the safest digital technologies for international trade and banking services. Thus, we can confidently assure our global portfolio of customers that every trade finance product or service from Euro Exim Bank enjoys best-in-class cybersecurity and data protection from end-to-end.
