World banks issued a warning. Better cash out in case of a breakdown

In the face of the increasing hazard of banking strategy failure and cyber attacks on financial institutions in Europe, more and more experts urge keeping any of the savings in the form of cash. specified a step, although simple, can supply financial safety in crisis situations. Should Poles prepare for specified scenarios?

The increasing threat of cyber attacks in Europe

According to the European Cybersecurity Agency (ENISA), in 2023 the number cyber attacks on banks and payment systems increased by 38% compared to the erstwhile year. kind attacks ransomware, which block access to banking systems and request ransom, have become a peculiarly common problem. In fresh years, Germany, France and Italy have experienced them.

In Poland, too, the number of cases where bank customers lose funds due to phishing attacks. The National Bank of Poland and the Financial Supervision Commission have repeatedly warned against threats, calling for caution in utilizing online banking services.

Cash at home – why does it matter?

In emergency situations specified as failure of payment systems, power outages or massive hacking attacks, cash may be the only way to make the essential transactions. According to experts, having financial reserves at home allows:

• Purchase of basic products, specified as food, water or medicines, even if payment terminals are not available.
• Payment of services in places where electronic infrastructure is temporarily unavailable.
• Quick access to emergency measures without the request to usage ATMs that may not work.

How much is worth in cash?

Recommendations on cash ownership vary from country to country, but experts propose that this amount should be adjusted to the regular needs of the family and covered expenses for about a week. In Poland the average weekly household expenditure is around PLN 800-1200, depending on the number of householders and lifestyle.

It is besides worth remembering that stored cash is spread out into different denominations – tiny amounts make it easier to make tiny transactions, e.g. in local stores.

Is cash the only solution?

Although keeping cash at home is 1 simple way to safe financial security, it is not the only way to defend against a malfunction of banking systems. Experts point to another methods that may increase financial security, as follows:

• Diversification of funds – part of the funds should be placed in different banks to minimise the hazard in case of problems in 1 institution.
• Use of accounts in abroad currency – this may be useful for local crises.
• Holding of valuable assets – specified as gold or silver, which can service as an alternate currency in crisis situations.

Risks associated with holding cash

Although having cash at home has many advantages, there are risks. The most crucial of these are:

1. Risk of theft – home funds are exposed to theft, especially if they are not adequately secured.
2. Inflation – the cash stored loses value as a consequence of price increases, which means that its purchasing power may decrease.
3. Inappropriate retention conditions – cash should be stored safely and in a safe, for example.

Poland in the context of financial security

Polish banks declare that they regularly invest in safety of payment systems and cybersecurity. In 2023 the National Bank of Poland allocated more than PLN 120 million to upgrade IT infrastructure and data safety training. Despite this, experts inform that the hazard of full cyber threats is impossible, so it is worth taking preventive measures.

Keeping cash at home is an component that can increase safety in times of uncertainty, but it is worth taking care of. Appropriate financial preparation, combined with education on cyber threats, will aid Poles better defend your finances and deal with crisis situations.