Financial Cos Spend Most On Cyber Security: Study

by CXOtoday News Desk    Mar 16, 2017

bank spent

Banks and other financial institutions spends thrice the amount than non-financial sectors do on cyber-security. Financial institutions are under pressure to fortify security given the trends such as the increased take-up of mobile banking putting banks’ IT infrastructure defenses at growing risk of cyber-attack reveals a Kaspersky study.

According to the Financial Institutions Security Risks research from Kaspersky Lab and B2B International, security investment is a high priority for banks and financial institutions. Meanwhile the study showed that customers are playing an important role in highlighting security incidents, with a quarter of financial institutions saying that some of the threats they faced in 2016 were identified and reported to them by a customer.

The report highlights that almost two-thirds that is 64 percent of banks admit that they will invest in improving their IT security regardless of the return-on-investment, in order to meet the growing demands of government regulators, top management and even their customers.

Despite banks putting serious efforts and budgets into safeguarding their perimeters against known and unknown cyber-threats, protecting the breadth of IT infrastructure that now exists – from traditional to specialized, ATMs and Point-of-Sale terminals – has proved difficult. The vast and ever-changing threat landscape, coupled with the challenge of improving the security habits of customers, has provided fraudsters with ever more points of vulnerability to exploit.

Emerging risks related to mobile banking are highlighted in the report with 42 percent of banks predicting that an overwhelming majority of their customers will use mobile banking within three years, but admit that users are too careless in their online behavior.

“Combatting the constantly changing threats targeting their own IT infrastructure and customer accounts is an everyday challenge for financial institutions. To put an effective response in place - that protects all points of vulnerability - requires the financial services industry to have several key components: build a highly integrated anti-targeted attacks protection, embrace multi-channel anti-fraud security and get actionable intelligence on evolving threats,” said, Veniamin Levtsov, Vice President, Enterprise Business at Kaspersky Lab.

Almost two-thirds of respondents see improving the security of apps and websites that their customers use as one of their main security priorities, closely followed by the implementation of more complex authentication and verification of log-in details (a key priority for 52 percent). 

The study further said that banks show comparatively low levels of concern about the threat of financial loss due to attacks on ATMs, despite being highly vulnerable to attacks of this nature. Only 19 percent of banks are concerned with attacks on ATM and cash withdrawal machines, despite the growing rate of malware targeting this part of a banks’ infrastructure.