The financial services industry consistently finds itself at the top of the most targeted lists for hackers, making it again into the top 3 industries affected in this year's Verizon Data Breach Investigation Report. Notably, "breaches with a financial motive dominate everything else." These institutions have always been a massive target for hackers due to abundance of sensitive data they have on hand, which is growing significantly on a daily basis. With more data to steal comes more attempts to steal it. And though reports found an 8% increase in detected security incidents last year, as well as a 24% jump in financial losses associated ($3.4M), information security budgets show little growth.
The good news is that security standards and regulations have been enforced, such as PCI DSS, to ensure nothing falls through the cracks. The bad news is that is it on the financial institution to determine, validate and enforce these compliance regulations, and stricter guidelines are being proposed more and more frequently. The financial industry simply is not prepared. Another major challenge these financial institutions are facing is they aren’t implementing the most efficient or appropriate processes or technologies for their particular business operations, nor are they adequately addressing threats from third parties or employees with access to the data.