Banks and insurance firms facing flood of cyberattacks

28 May 2004 10:45

More than 80 percent of global financial institutions have had their systems compromised during the past year, according to a survey

Cyberattacks on IT systems of banks and insurance companies are on the rise worldwide, according to a survey released on Thursday.

Deloitte Touche Tohmatsu's study showed that nearly 83 percent of respondents said their systems had been compromised in the past year, compared with 39 percent in 2003. Nearly 40 percent of the respondents whose systems were attacked reported financial losses.

The study is based on interviews with senior security officers from 100 of the top global financial institutions.

In spite of increasing security attacks, not every company's security budget is growing. About 5 percent of those surveyed said their security budgets remained flat, while 10 percent had their budgets reduced from the previous year. The percentage of companies that have fully deployed antivirus measures declined to 87 from of 96 in the previous year. And one-third felt security technologies in their companies are not being used effectively.

"Financial institutions are fighting an ongoing battle to combat and mitigate ever-increasing security threats and attacks, and privacy violations, as well as comply with the increasingly stringent regulatory environment," Ted DeZabala, a principal of Enterprise Risk Services at Deloitte, said in a statement.

Story URL: http://news.zdnet.co.uk/security/0,1000000189,39156045,00.htm