Banks say they’re at risk from data breaches at retailers, telcos

• All banks expect data breaches in other industries to harm them this year
• 72% see significant rise in number of threats from mobile commerce

 
IN a survey of 36 fraud executives from 18 leading Asia Pacific banks at the 2015 Fico Fraud Forum, all the respondents indicated that data breaches in other industries will harm financial institutions in 2016.
 
Banks in the region are keenly aware of the threat posed by the increasingly connected business landscape, Fico said in a statement.
 
Banks are also aware that FSI (financial service institute) card portfolios are more vulnerable when customer data is collected by so many entities – 38% of respondents ranked large retailers as being at the greatest risk for a data breach in 2016, with another 35% choosing telecommunications companies.
 
By contrast small business (25%) and healthcare (22%) were voted as the industries least likely to be at risk of a data breach in 2016, Fico said.
 
Hospitality and travel, along with insurance, were ranked as medium risks for data breaches in the year ahead.
 
72% of respondents see a significant rise in the volume of threats from mobile commerce and mobile-first consumers in Asia Pacific, with another 22% expecting a modest increase.
 
“Rapid Internet and mobile penetration have seen many industries grow their online capabilities to include payments, online applications and account management services, yet many organisations only have basic security in place,” said Raed Taji (pic), head of Global Fraud Consulting for Fico in Asia Pacific.
 
“These businesses are soft targets compared with the banks because they lack the resources or historical security focus needed to protect critical systems and customer data,” he added.
 
The last year alone has seen an average 22% increase in shopping on mobile phones across 13 Asia Pacific markets, according to a 2015 study from Visa, Fico said.
 
Indonesia, China and Taiwan reported the highest rates of growth for 2015 at 36%, 34% and 28%, respectively.
 
Asia Pacific fraud executives were also asked which factors might inhibit their own organisation's ability to stop a data breach – 24% nominated low security awareness amongst employees as the No 1 factor, with another 21% saying a lack of budget was to blame, while 40% ranked too many siloed operations as their No 2 issue.
 
“These results show that better processes, education and management are just as important as having the right technology to keep up with the ever evolving cybersecurity and fraud landscape,” said Taji.
 
“To avoid becoming a hacking statistic, companies should focus on good security habits, like educating their staff, using strong security solutions, and examining how they are collecting, using and storing valuable data,” he added.
 
For more information, click here.
 
Related Stories:
 
Big data analytics key to addressing fraud at the root
 
Is enterprise fraud management just a fad?
 
Asia’s mobile-first boom changing fraud patterns: Fico
 
 
For more technology news and the latest updates, follow us on Twitter, LinkedIn or Like us on Facebook.