Fraud Attack

Cybercrimes Cost Financial Service Firms $18M, On Average

Financial services firms, above any other industry, rack up the most in damages following a cyberattack, a new report from Accenture and Ponemon Institute found.

Business Wire said the rate of data breaches targeted at financial services companies has tripled over the past five years. In a report dubbed “Cost of Cyber Crime Study,” Accenture and Ponemon Institute found the average costs of a cybercrime perpetrated on a financial services company has increased by more than 40 percent during the past three years to $18.28 million (as of the end of last year). Three years ago, the cost stood at $12.97 million on average.

The report also noted that while financial services companies feel the most pain in terms of costs from cyberattacks, they’re doing the most to try to prevent them by investing in sophisticated security technology. Companies spend the most on cyber defenses with advanced solutions, such as security intelligence systems, automation and machine learning technologies, the report found. According to Accenture and Ponemon Institute, the number of data breaches per company jumped from 20 back in 2012 to 125 in 2017, which is slightly lower than the global average of 130 across all industries.

“While the cost of cybercrime for financial services companies continues to rise, our research found that these companies have considerably more balanced and appropriate spending levels on key security technologies to combat sophisticated attacks than do those in other industries,” said Chris Thompson, a senior managing director at Accenture, in a press release highlighting the results of the research. “This is particularly true with regard to the use of automation, artificial intelligence and machine learning technologies, which could be critical to future cybersecurity efforts.”

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