The Latest Cybersecurity In The Financial Services Industry Statistics Explained
70% of financial companies believe they will become the primary targets for cyber criminals.
The statistic that 70% of financial companies believe they will become the primary targets for cyber criminals highlights the widespread concern within the financial industry regarding cybersecurity threats. This statistic suggests that the majority of financial institutions recognize the high risk they face in terms of cyber attacks and data breaches. Such a perception likely stems from the valuable financial information and assets held by these companies, making them attractive targets for cyber criminals seeking to steal sensitive data or disrupt operations. As a result, it is crucial for financial companies to prioritize robust cybersecurity measures to protect themselves and their clients from potential cyber threats.
US banks are estimated to spend about $68.3 billion on cybersecurity between 2020 and 2025.
This statistic indicates that US banks are projected to allocate approximately $68.3 billion towards enhancing their cybersecurity infrastructure and capabilities over the period spanning from 2020 to 2025. This substantial investment reflects the growing recognition of the importance of cybersecurity in the financial sector to protect sensitive customer data, prevent cyber threats, and maintain the integrity of financial transactions. The increasing digitization of banking processes and the rise of cyber threats make it crucial for banks to allocate significant resources towards cybersecurity to safeguard against potential breaches and ensure the trust and security of their customers’ financial information.
46% of financial organizations experienced a security incident in 2019.
This statistic indicates that 46% of financial organizations encountered a security incident within the year 2019. This could encompass a broad range of incidents such as data breaches, cyber attacks, insider threats, or fraud cases. The high percentage suggests that security threats are prevalent within the financial sector, highlighting the importance of investing in robust cybersecurity measures to protect sensitive data and assets. It also underscores the need for continuous monitoring, timely detection, and effective response strategies to mitigate the risks associated with cyber threats in the financial industry.
64% of financial services companies experienced spear-phishing attacks in 2019.
The statistic “64% of financial services companies experienced spear-phishing attacks in 2019” means that nearly two-thirds of companies within the financial services sector reported being targeted by spear-phishing attacks during that year. Spear-phishing is a type of cyberattack where malicious actors send personalized and deceptive emails to individuals within an organization in an attempt to trick them into revealing sensitive information or clicking on malicious links. This high percentage suggests that the financial services industry is a prime target for cybercriminals using such tactics, highlighting the importance of robust cybersecurity measures and employee training to mitigate the risks associated with these types of attacks.
Data breach costs for financial services firms are the highest of any industry at $210 per capita.
The statistic that data breach costs for financial services firms are the highest of any industry at $210 per capita highlights the significant financial impact that data breaches have on this particular sector. The cost per capita indicates the average monetary loss incurred by individuals affected by a data breach within financial services firms. This high cost can be attributed to various factors such as the sensitive nature of financial data, the regulatory fines imposed on firms that fail to protect customer information, and the potential for reputational damage that can impact customer trust and loyalty. Therefore, financial services firms need to prioritize cybersecurity measures to mitigate the risk of data breaches and safeguard both their customers and their bottom line.
The average cost of a cybercrime for a financial services firm in 2019 was $18.5 million.
The statistic indicating that the average cost of a cybercrime for a financial services firm in 2019 was $18.5 million suggests that these firms are facing substantial financial losses as a result of cyber incidents. This figure includes various expenses such as incident response, investigation, remediation, loss of revenue, and potential legal costs. Cybercrimes against financial institutions can have far-reaching consequences, including reputational damage and loss of customer trust. The high cost underscores the critical importance for financial services firms to invest in robust cybersecurity measures to protect against cyber threats and mitigate potential financial losses.
88% of cybersecurity professionals believe regulation of the financial sector is inadequate.
The statistic suggests that a significant majority of cybersecurity professionals, specifically 88%, hold the belief that there are deficiencies in the existing regulations governing the financial sector. This indicates a common perception within the cybersecurity community that current regulatory frameworks fall short in adequately safeguarding financial institutions against cyber threats. Such a sentiment could stem from growing concerns over the increasing sophistication and frequency of cyberattacks targeting financial systems, highlighting the need for more robust and stringent regulations to better protect against cyber risks in the financial sector.
19% of all cybersecurity attacks target the financial services sector.
The statistic that 19% of all cybersecurity attacks target the financial services sector implies that nearly one-fifth of all cyber threats are directed at organizations within the financial industry. This sector includes banks, insurance companies, investment firms, and other financial entities that are especially attractive to hackers due to the potential for financial gain and access to sensitive personal and financial data. The high prevalence of cyber attacks in the financial services sector underscores the need for robust cybersecurity measures and risk management strategies to protect customer information, financial assets, and maintain the trust and integrity of the industry.
In 2019, financial firms took an average of 197 days to identify a breach.
The statistic states that in 2019, financial firms on average took 197 days to identify a breach within their systems. This implies that these firms were unaware of security breaches within their networks for an extended period, potentially leaving sensitive data and information vulnerable to unauthorized access or exploitation. A longer detection time can result in increased damage caused by the breach and make it more challenging to contain and remedy the situation. This highlights the importance of timely detection and response to security threats within the financial industry to protect both the firms and the individuals whose data they hold.
95% of CISOs perceive their organizations as susceptible to external digital threats.
The statistic ‘95% of Chief Information Security Officers (CISOs) perceive their organizations as susceptible to external digital threats’ indicates a high level of concern among leaders responsible for cybersecurity. This suggests that the vast majority of CISOs believe that their organizations are at risk of being targeted by cyber attacks, highlighting the evolving and complex nature of digital threats in today’s technology-driven world. The perception of susceptibility to external threats implies a recognition of the importance of effective cybersecurity measures in protecting against potential breaches and data compromises, underscoring the ongoing importance of proactive risk management strategies and investment in robust cybersecurity defenses to safeguard organizational assets and sensitive information.
52% of financial services businesses had undergone an assessment of third-party vulnerabilities.
The statistic “52% of financial services businesses had undergone an assessment of third-party vulnerabilities” indicates that slightly more than half of financial services businesses have evaluated the security risks associated with third parties they work with. By conducting such assessments, these businesses are proactively identifying potential vulnerabilities in their supply chains or partnerships that could pose a threat to their operations and data security. This statistic highlights a positive trend towards risk management and cybersecurity awareness within the financial services industry, suggesting a recognition of the importance of protecting sensitive financial information from external threats.
Almost 40% of financial organisations have no incident response plan.
The statistic “Almost 40% of financial organizations have no incident response plan” signifies that a substantial proportion of entities within the financial sector lack a structured and organized strategy to address cybersecurity incidents effectively. This is concerning as incident response plans are crucial for swiftly identifying, containing, and mitigating security breaches or data breaches, ultimately minimizing potential damages and ensuring business continuity. Without a comprehensive incident response plan in place, financial organizations may be more vulnerable to cyber threats and could face significant challenges in managing and recovering from security incidents. This statistic emphasizes the importance of prioritizing cybersecurity readiness and implementing proactive measures to enhance the resilience and security posture of financial institutions.
69% of customers in banking and financial services would switch providers due to breaches in cyber security.
This statistic suggests that a significant portion of customers in the banking and financial services industry are highly concerned about cyber security breaches to the extent that they would be willing to switch providers if such breaches were to occur. The high percentage of 69% indicates that a large majority of customers prioritize the security of their financial information and transactions. This finding underscores the importance for businesses in the industry to invest in robust cyber security measures to maintain the trust and loyalty of their customer base, as failing to do so could result in significant customer churn and potential reputation damage.
Cybersecurity in the financial sector represents 15% of the overall cybersecurity market.
The statistic that “Cybersecurity in the financial sector represents 15% of the overall cybersecurity market” indicates the proportion of cybersecurity activities and investments specifically dedicated to protecting the financial sector within the broader cybersecurity industry as a whole. This suggests that a significant portion, 15%, of resources, technologies, expertise, and spending in the cybersecurity market are targeted towards safeguarding financial institutions, such as banks, insurance companies, and investment firms, from cyber threats and malicious activities. Given the sensitive nature of financial data and the high stakes involved, it is understandable that a substantial portion of the cybersecurity market is allocated towards securing the financial sector against cyberattacks and data breaches.
More than 50% of financial services firms rank cybersecurity as their top operational risk.
The statistic indicates that a significant majority of financial services firms consider cybersecurity as their primary operational risk, with over 50% of firms placing it above other potential risks such as regulatory compliance, data breaches, or market volatility. This suggests that cybersecurity issues are perceived as a critical threat to the operational stability and security of financial institutions. The high ranking of cybersecurity as a top risk reflects the growing emphasis on protecting sensitive financial data, ensuring customer trust, and safeguarding against potential cyberattacks in the rapidly evolving digital landscape of the financial services industry. Addressing cybersecurity concerns and implementing robust risk management strategies are crucial for ensuring the resilience and integrity of financial firms in today’s highly interconnected and technology-dependent environment.
Only 42% of financial services firms have an executive explicitly responsible for cybersecurity.
This statistic indicates that a relatively low percentage (42%) of financial services firms have a designated executive who is explicitly responsible for overseeing and managing cybersecurity efforts within the organization. Having a dedicated executive in charge of cybersecurity is crucial in today’s digital age, where financial institutions are increasingly facing cyber threats and attacks. This finding suggests that there may be gaps in cybersecurity leadership and strategy within the financial services sector, which could potentially put these firms at higher risk of experiencing security breaches and data compromises. Strengthening cybersecurity governance by assigning clear responsibilities and accountability to an executive may help improve resilience and enhance protection against cyber risks for financial services organizations.
At least 60% of financial institutions state they can’t detect a cyber attack quickly.
The statistic indicates that a significant proportion of financial institutions lack the ability to promptly identify cyber attacks, with at least 60% reporting an inability to detect such threats quickly. This suggests a concerning vulnerability within the financial industry, as swift detection is crucial in mitigating the potential damage caused by cyber attacks. The inability to detect threats promptly can leave financial institutions susceptible to data breaches, financial losses, and reputational damage. Addressing this issue through improved cybersecurity measures, enhanced detection capabilities, and robust incident response protocols is imperative to enhance the resilience of financial institutions against cyber threats.
Mobile banking fraud losses reached $25 billion globally in 2020.
The statistic “Mobile banking fraud losses reached $25 billion globally in 2020” indicates the total economic impact of fraudulent activities specifically targeting mobile banking services worldwide within the year 2020. This figure encompasses financial losses incurred by individuals, financial institutions, and businesses due to unauthorized transactions, identity theft, phishing scams, or other forms of fraudulent activities conducted through mobile banking platforms. The substantial amount of $25 billion underscores the growing threat of mobile banking fraud in the digital age and emphasizes the importance of adopting robust security measures and fraud detection technologies to safeguard against such financial risks.
44% of consumers changed their financial service provider due to fear of identity theft or privacy concerns.
The statistic that 44% of consumers changed their financial service provider due to fear of identity theft or privacy concerns reveals a significant impact of security and privacy issues on consumer behavior. This indicates a widespread concern among individuals regarding the protection of their personal and financial information, driving them to take proactive measures such as switching providers to safeguard their data. Such a high percentage underscores the critical importance of security measures and privacy policies in the financial services industry, highlighting the need for companies to prioritize data protection to retain and attract customers in an increasingly digital age where information security is paramount.
References
0. – https://www.www.bcgperspectives.com
1. – https://www.www.ibm.com
2. – https://www.www.whitecase.com
3. – https://www.www.symantec.com
4. – https://www.www2.deloitte.com
5. – https://www.www.pwc.com
6. – https://www.home.kpmg.com
7. – https://www.cybersecurityventures.com
8. – https://www.www.forbes.com
9. – https://www.www.finextra.com
10. – https://www.www.juniperresearch.com
11. – https://www.www.gemalto.com
12. – https://www.www.accenture.com
