July 16, 2019
ThreatMetrix Study Finds 93 Percent of Financial Institutions Consider Online Fraud Prevention High Priority; Most Have Only Baseline IT Security Tools in Place
Posted January 16, 2013
Due to FFIEC Regulations, All Financial Service Organizations Will Implement More Robust Cybersecurity Systems by 2014
San Jose, CA – January 16, 2013 – ThreatMetrix™, the fastest-growing provider of integrated cybercrime prevention solutions, today announced results of the ThreatMetrix 2012 State of Cybercrime study, conducted by Info-Tech Research Group. The study surveyed U.S. business managers and IT executives within retail and financial services organizations on their level of cybersecurity planning and fraud prevention solutions.
ThreatMetrix found that 93 percent of financial institutions consider online fraud prevention a high priority. However, most included in the research only had baseline IT security tools in place, with the top five tools being internal firewall, gateway anti-virus/malware, gateway firewall, intrusion detection/prevention and security management systems. According to ThreatMetrix, this is not enough.
“Fraudsters go where the money is, making financial institutions a prime target for cybercriminals,” said Andreas Baumhof, chief technology officer, ThreatMetrix. “As more transactions move online, company and customer data at financial institutions are put at high risk of being compromised. Baseline cybersecurity is not effective enough to ward off fraudsters – financial institutions need an integrated device identification and malware protection solution in place to protect themselves and their customers.”
With the uptick in malware and Trojan attacks, financial institutions are increasing their cybersecurity strategies. The study shows that by 2014, all financial service organizations will implement IT security systems because of regulations put forward by the Federal Financial Institutions Examination Council (FFIEC).
In 2011, the FFIEC regulated financial institutions to implement a layered security approach, and identified two key techniques for financial institutions to maintain effective fraud controls – complex device identification and the ability to detect emerging malware threats.
Fraud prevention isn’t the only area financial institutions must be aware of. Few are likely to make significant changes following an attack or security breach. The study shows that only 22 percent of financial institutions have made significant changes to IT security systems and policies following an attack, and 23 percent indicated the organization continued operations as normal.
“Financial institutions should not take cyberattacks lightly,” continued Baumhof. “Just because they have already been attacked does not mean it won’t happen again. Once a weak link is exposed, fraudsters will come back for more. Therefore, financial services must always put stringent cybersecurity policies in place before fraudsters even have the opportunity to attack.”
For more information on this study, download the full report at http://info.threatmetrix.com/ThreatMetrix_Security_Online_Fraud_Prevention.html.
About Info-Tech Research Group
With a paid membership of over 28,000 members worldwide, Info-Tech Research Group is the global leader in providing tactical, practical information technology research and analysis. Info-Tech Research Group has a 14-year history of delivering quality research and is North America’s fastest-growing, full-service IT analyst firm. For more information, visit www.infotech.com or call 1-888-670-8889.
ThreatMetrix®, The Digital Identity Company®, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying more than 20 billion annual transactions supporting 30,000 websites and 4,000 customers globally through the ThreatMetrix Digital Identity Network®, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches. Key benefits include an improved customer experience, reduced friction, revenue gain and lower fraud and operational costs. The ThreatMetrix solution is deployed across a variety of industries, including financial services, e-commerce, payments and lending, media, government and insurance.
Walker Sands Communications