INADEQUATE FINANCIAL SECURITY
A Survey Conducted by Kaspersky Lab Shows Worrying Security Trends that are Still Prevalent in Financial Organizations
Kaspersky Lab, in cooperation with B2B International, conducted a survey that found approximately half of banks and payment systems prefer mitigating cyber incidents and treating them as they happen rather than taking steps to prevent them.
In the survey, less than half or 48 percent of financial organizations said they would take measures to protect their clients from online fraud, aiming at mitigating the consequences rather than preventing incidents entirely.
Furthermore, 29 percent of companies surveyed believe it is cheaper and more effective to address cases of fraud as they occur, rather than to attempt to prevent them.
What is concerning was that only 41 percent of organizations would take necessary measure to prevent cyberfraud incidents from reoccurring once it happens, while 36 percent of companies would conduct an analysis of the vulnerability exploited in the attack, and 38 percent would compensate the losses. The most popular policy among companies is to try to find out who was behind the attack, which is a practice of two thirds (66 percent) of financial organizations.
“Relying solely on mitigating the negative consequences of fraud is similar to trying to treat the symptoms of an illness rather than its root cause. The symptoms will recur, and the illness will progress. In this respect, Kaspersky Lab recommends that you do not forget how important prevention is. Many of the world’s leading banks have acknowledged this and have implemented ‘root cause fraud prevention’, but alarmingly many still rely on ‘reactive fraud detection’. Each year, cybercriminals invent more and more sophisticated methods of attack, and if the banks do not have preventive measures in place, it enables further growth in the numbers of financial cybercrime and increased losses,” said Ross Hogan, Global Head of the Fraud Prevention Division at Kaspersky Lab.