Cyber Risk and Distrust of the Quality of Information
This study analyzes how cyber risk influences banks' information diversification, using 2011–2021 data from 2,249 U.S. banks. It finds that heightened cyber threats, especially in financial systems, drive banks to diversify information sources to counter data integrity concerns. Larger, nationally chartered banks—more reliant on single data streams—respond more aggressively, reflecting greater vulnerability to operational disruptions from cyber incidents. The results underscore information security's critical role in banking resilience, suggesting institutions adapt by broadening verification channels. Future research could assess if these strategies reduce systemic risks during crises.