A recent report by Kaspersky Lab revealed that cyber security incidents that affected online banking services amounted to over $1.7 million on the average. It didn’t include the costs of recovery, which was almost $850,000. Many companies spend a lot on basic data protection such as web content filtering software and anti-virus programs, but banks are also more likely to spend more after a breach than other industries. For example, the cost of recovery from a DDoS attack is more than $1.1 million for banks – a huge difference from the $952,000 spent by non-financial institutions. Why are banks vulnerable to these attacks? This is what researchers found:
1. Sophisticated Attacks
The financial sector invests copious amounts of money for cyber security. JP Morgan Chase increased their spending by twofold in 2016 following a cyberattack three years before. By 2015, IT security already cost the company around $500 million. In other words, banks, including their online services, are designed to be secure. Attacks against them, therefore, are both targeted and sophisticated. These criminals are usually hackers with deep knowledge, experience, and expertise in the field.
2. Big Data
Although the end goal is usually financial gain, cyberattacks occur mainly to access the available information stored by financial institutions. There are no official numbers, but one can imagine how massive the data are, which include personal and credit information. Criminals can use these types of stolen information to blackmail the company to pay millions of dollars or access personal accounts to steal money.
3. Access Points
Cyber criminals also have various access points. They can infiltrate the online banking framework or mobile apps. They can also do email phishing, which targets bank customers. Once these customers input their information on the fake page, hackers can now enter their respective accounts. Inside jobs can also be likely. A bank employee, for example, may download a malware that can spread across the network. Banks these days continue to put money on advanced technologies and complex strategies, but it’s equally important to focus on the basics. Using a content filter, for example, can help reduce the chances of anyone downloading apps or ads infected with malware. Cyber crimes are not only costly, but they also damage the bank’s credibility, which is much harder to repair. Before it gets to that point, these financial institutions must cover all their bases.