Cybercrime isn’t going away anytime soon. The rate of cyber attacks on businesses worldwide continues to grow year after year, and banks and other financial services companies are quickly becoming the prime target. But, while the big money managers may be getting hit the hardest, they are also the ones investing the most in new technologies designed to safeguard against cyber threats—which means merchants can learn a lot from observing where today’s banks, insurance companies, and investment services firms are putting their cybersecurity dollars.
According to a report by global professional services company Accenture, the average cost of cybercrime for banks and other financial services firms has risen by almost 10% last year alone—now averaging more than $18 million annually. The industry experiences about 125 security breaches every year, which is almost as much as the global average for all industries (130 per year), and denial of services and social engineering attacks, including phishing scams, are among the most costly cyber attacks experienced.
How are financial services firms responding to the threat of cybercrime? Because information loss is one of the most expensive consequences of cyber attacks for banks and other organizations, it comes as no surprise to learn they spend the majority of their cybersecurity dollars on detection technology. However, data suggest those dollars could be spent more efficiently. According to the report, AI-based automation/machine learning security measures, along with advanced analytics, ranked best for cost savings.
However, only 26% of financial services firms have deployed AI-based security and only 31% are using advanced analytics. There is a growing need among banks and other money managers to develop a better cybersecurity strategy—one that includes investing in new technologies as well as doing a better job of balancing spending to improve cybersecurity effectiveness. It is also important that businesses continuously test for vulnerabilities and identify areas for improvement instead of simply relying on their current technology to protect them.
Merchants, no matter how small, can learn from the big guys. No doubt you have the same concerns as the financial giants when it comes to safeguarding sensitive information and preventing costly cyber attacks. Maybe even more, since your resources to deal with a major security threat are far less abundant. That’s where we come in.
Contact us today and let us show you how we can help your company mitigate risk and take a stand against cybercrime.