Financial service organizations including banks, wealth advisors, insurance providers and others rely on data to power their business. As a result, they hold vast amounts of highly sensitive, personal information and today, all of it is of course digital. This treasure trove of data makes the financial services industry a highly valued target for cyber criminals and a quick check of headlines prove they have been busy taking what they want from many. From Capital One to Equifax and countless others in between, data breaches across the financial sector are massive both in scope and cost.
As this year’s Cost of a Data Breach Report by the Ponemon Institute again shows, the price tag for falling victim to hackers continues to climb. The global, cross-industry average cost is now $3.92 million – an increase of 12% over what it was just 5 years ago. Driving the rising costs for all U.S. organizations is the lost business that results from a breach including lost customers, system downtime and general business disruption.
Adding further insult to injury, the financial impact of a data breach can last for years, particularly for highly regulated industries like financial services. Long, complex governance processes in which legal fees and fines are dragged out for long periods of time are painfully common. As the regulatory environment continues to evolve, with new state data protection laws such as the California Consumer Privacy Act (CCPA) coming onto the scene for example, compliance challenges and associated fines for financial services and other industries will only grow.
How are cyber attackers getting in? There are several studies on this and for the financial services industry specifically right now, most point to phishing attacks as the primary culprit. Intended targets include both the institution’s employees and their customers.
Regardless of tactic however, there are a few steps you can take to improve your security posture.
The financial services industry doesn’t have the sole attention of cyber criminals – no industry is immune to attack anymore. But knowing your specific risks is the first step in providing better protection for your organization as well as your customers.
For more information on how Absolute helps financial organizations protect data and remain compliant, see our solution sheet.