by Robert McGarvey
For years I have pondered a puzzle: why do financial institutions spend so much on cybersecurity and employ wonderfully smart and talented people – but the results are not as good as one would hope.
Frequently financial institutions simply are whipped by their criminal opponents.
Just look back on how DDOS – distributed denial of service – brought innumerable institutions to their knees a few years ago. It took months for credit unions to get it together to repel the attack.
Then look at ATM jackpotting. New account opening fraud. ATM skimming. The list could go on and on but you get the message: criminals often outwit credit unions and banks and that is despite the money spent and the talent employed.
Why don’t credit unions gain the upperhand?
Hear the related podcast with Authentic8 CEO Scott Petry here.
A new report, sponsored by cybersecurity firm Authentic8, involves a survey of 163 financial services professionals, and it tackles just that question: why do financial services firms so often fall victim to cyberattacks?
Here’s a hint at the reason: “Financial firms have some of the best-funded IT departments of any industry, that’s no secret,” said Scott Petry, CEO of Authentic8. “What’s perplexing to me, with data breaches and privacy violations at an all-time high, is how deep the divide still runs between IT, compliance and legal professionals in many firms.”
The report’s title spells out the problem: “Surprising Disconnect Over Compliance and Secure Web Use at Financial Firms.”