Financial Security and Fraud: Should You Be Worried?
Author(s): Stephen McCarney, Posted on July 9th, 2014
Security threats against enterprises have grown exponentially in size, scope, and complexity. The financial sector, in particular, has been among the leading targets for data breaches and cybercrimes in recent years. The 2014 Unisys Security Index reveals that 59 percent of American consumers are “extremely” or “very” concerned about having their card data stolen (a 7 percent increase since 2013), and 57 percent are majorly concerned about identity theft. The study also indicates that more than half (60 percent) of the Americans are likely to switch banks or retailers if their card credentials were compromised. From data theft and bankcard fraud to “denial of service” attacks, it is evident that today’s security is proving to be ineffective against advanced persistent attacks.
In addition to increased security demands from customers, financial organizations are under tremendous pressure to increase revenues and aggressively manage expenses while staying ahead of the competition and complying with the changing regulations. Moreover, with customers demanding remote deposit services and using mobile devices for various types of transactions, banks have no choice but to offer these services to remain competitive. This increases the demand on financial firms to fortify systems that are designed to make banking transactions secure and simpler. How can financial services organizations combat current and emerging threats? How can they be more customer-centric? How can they secure mobile transactions and protect customer information and identity?
Looking Beyond Traditional Security
Financial institutions need to up the ante by securing banking transactions, safeguarding identities, and protecting sensitive information, irrespective of the devices used or location of the customer. Let’s examine how:
- In addition to biometric authentication incorporated into mobile devices, banks can go one step ahead and use advanced data cloaking and encryption techniques that render devices, data, servers, and end users undetectable on the network
- Data isolation can ensure that critical customer details and information is only available to certain pre-defined communities who have the right authentication
- Financial institutions and banks can leverage big data technologies that analyze massive amounts of data to predict, identify, and prevent fraud
- Identity fraud can be mitigated by using tools that can monitor log-in attempts in real-time and add additional layers of authentication
Staying One-Step Ahead
Financial institutions generally have good security. But with fraudsters and cybercriminals becoming more sophisticated in their attacks, it’s imperative for banks and financial services providers to be smarter than their adversaries. Understandably, it’s not always possible to predict fraudulent activity. Financial firms can, however, proactively strengthen their security systems against data breaches and malware attacks by using advanced, innovative technologies.
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Visit the Unisys Security Index web site to view the complete findings from this year’s report.