Firms to spend more on cyber security

April 21st, 2017 by admin Leave a reply »

As per the recent Duff & Phelps survey, eighty-six percent of financial services firms are planning to spend more time and resources on cyber security in this year. In 2016, only 60 percent said they planned to spend more. Also, thirty-one percent mentioned that the cyber security is the top priority.

“Cyber security is at the top of the agenda for financial services firms today,” Jason Elmer, managing director for compliance and regulatory consulting at Duff & Phelps, said in a statement. “In the wake of high-profile cyber attacks, many are anticipating clearer and more punitive cyber security regulation to be implemented.”

“Firms are proactively looking to strengthen cyber defenses as a result, and this is an opportunity for regulators to collaborate with financial institutions to form new rules,” Elmer added. “What’s also clear is that commercial pressures from investors concerned about the security of their sensitive data will accelerate any attempt to improve cyber security measures.”

There is a high cost involved in the case of a breach. Kaspersky Lab conducted a survey of financial institutions. It mentioned that cost of even a single cyber security incident to a financial institution in the U.S. can rise up to $1,165,000.

Other findings of survey include-

Fifty-three percent believe that their top concerns are phishing/social engineering attacks on customers

Thirty-three believe that attack can happen on local/branch office

Thirty-one percent believe that digital banking services can be the target

“Given the substantial monetary losses from cyber attacks, it is not surprising that financial organizations are looking to increase spending on security,” Kaspersky Lab vice president for enterprise business Veniamin Levtsov said in a statement.

“We believe successful security strategies for financial organizations lie in a more balanced approach to allocating resources — not just spending on compliance, but also investing more in protection from advanced targeted attacks, paying more attention to personal security awareness and getting better insights on the industry-specific threats,” Levtsov added.

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