Fighting economic crime in the Financial Services Sector (PWC)

Cybercrime is a growing threat in a world where most individuals and organisations rely upon the Internet and connected technologies, opening themselves up to the risk of attack from global criminals from anywhere in the world. Against a background of rising incidents of data losses and theft, pharming, phishing, computer viruses and hacking, this PWC survey scrutinised the significance and impact of this type of economic crime and the way in which it affects organisations worldwide.

Whilst cybercrime isn’t that new for the FS sector, it is a particularly prevalent issue for FS respondents in comparison to other industry sectors and one that puts its customers, brand and reputation at significant risk. Regulators are increasingly viewing cybercrime as a key area of focus. FS organisations are expected to have appropriate systems and controls in place to fight the growing threat of cybercrime. For example, in the UK the Financial Services Authority (“FSA”) has included “Data Security” within its top economic crime risks for some time. 

Impact of Cybercrime on Business (international)

Sponsored by Check Point Software Technologies this independently developed study by the Ponemon Institute shows that  Cyber criminals today are increasingly leveraging malware, bots and other forms of sophisticated threats to attack organizations for various reasons, including financial gain, business disruption or political agendas. In many cases, cybercriminals often target multiple sites and organizations to increase the likelihood of an attack’s initial success and viral spread.

With new variants of malware being generated on a daily basis, many companies struggle to fight these threats separately and the majority of attacks are often left undetected or unreported.

Cost of Cyber Crime Study (2011)

This is the third Cost of Cyber Crime study from the Ponemon Institute, sponsored by HP Enterprise Security. This years study has a distinctly international flavour with nearly 200 organizations across various industry sectors being represented. Cyber attacks generally refer to criminal activity conducted via the Internet.

The attacks featured include stealing an organization’s intellectual property, confiscating online bank accounts, creating and distributing viruses on other computers, posting confidential business information on the Internet and disrupting a country’s critical national infrastructure. Consistent with the previous two studies, the loss or misuse of information is the most significant consequence of a cyber attack. Based on these findings, organizations need to be more vigilant in protecting their most sensitive and confidential information.

The cost of Electronic recovery

Since the Sony PlayStation hack the media has been awash with headlines about big businesses being hacked, institutions facing daily attacks and personal information being compromised. Yet these well publicised attacks are just the tip of the iceberg, little is heard in the UK of breaches suffered by professional organisations, small businesses and public bodies. In a recent report by Detica published jointly with the UK Cabinet office “cyber crime” was estimated to cost UK businesses around £27 billion every year.

In this White Paper the Oval Group looks at how insurance can play its part in managing the effects of a data breach.

Cybercrime - its consequences & how to protect yourself

Price Waterhouse Cooper’s (PWC) 2011 report into security breaches noted that 93% of large organisations and 76% of small business have had a security breach in 2011, this is up from 35% of companies overall in 2008.* PWC advised in their report that the average cost to a small business is £15,000 – £20,000 and between £110,000 – £250,000 for a large organisation.

In this White Paper the Oval Group shares its view on the cybercrime challenges facing organizations and how an integrated approach to security management can lever significant insurance protection.