23 August 2017
visit www.avoka.com

Banks report surge in security attacks

13 June 2006  |  9182 views  |  0 call centre Customer assitant

More than three quarters of financial firms experienced external IT attacks in the past year, while almost half (49%) experienced internal breaches, according to a global survey by consultancy Deloitte.

Deloitte's '2006 Global Security Survey' of the world's top 100 global financial institutions found that 78% of banks experienced a security breach from outside the organisation in the past 12 months, up from 26% in 2005, while 49% had experienced at least one internal security breach, up from 35% in 2005.

Almost three-quarters (72%) of financial institutions that experienced a security breach indicated the estimated amount of damage, including direct and indirect costs, was in the range of $1 million.

The research found that more than half (51%) of external attacks were due to phishing and pharming, followed by spyware/malwere (48%). Insider fraud (28%) and theft of customer data (18%) were cited by respondents among the most common internal breaches.

Mike Maddison, director of security and privacy services at Deloitte says the extent and nature of these security breaches imply that professional hackers and organised crime have taken over a domain once ruled by 'script kiddies' and one-off hackers.

"The types of attack, the execution and exploitation require significant resources and coordination," he says.

However the research found evidence of the financial sector taking steps to fend-off the increasing threats as this year fighting identity theft and account fraud (58%), along with identity management (41%), made their way into the top five security initiatives for 2006, says Deloitte.

Furthermore, the vast majority of respondents - 95% - also said their IT security budgets had grown over the past year, with logical access control products topping the list of security budget spending (76% of respondents).

But the research did find that while 96% of respondents were concerned about employee misconduct involving IT systems, only a third (34%) have provided their staff with some form of information security and privacy training over the past year.

Maddison says financial institutions are shifting priorities and starting to take necessary measures to mitigate the various security risks and challenges.

"However, whilst it is only natural to shift focus to the most high profile or new and emerging threats, it is apparent that organisations must continue to maintain a balanced, and strategic approach to their security operations and initiatives," he says.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Diebold terminates IT outsourcing deal

Diebold terminates IT outsourcing deal

17 May 2006  |  6541 views  |  0 comments
Financial firms to ramp up offshoring

Financial firms to ramp up offshoring

16 November 2005  |  6119 views  |  0 comments
Banks told to beware enemy within

Banks told to beware enemy within

22 June 2005  |  4970 views  |  0 comments
Financial firms failing to manage IT security - Deloitte

Financial firms failing to manage IT security - Deloitte

19 May 2004  |  5837 views  |  0 comments
External threat to bank IT security

External threat to bank IT security

16 May 2003  |  7596 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comdownload the paper nowvisit www.niceactimize.com

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
17820 views comments | 41 tweets | 78 linkedin
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
13180 views comments | 28 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11813 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11037 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10915 views comments | 10 tweets | 8 linkedin

Featured job

Find your next job