According to the audit and advisory services firm, Deloitte, a recent survey of chief information security officers (CISOs) at financial institutions found that fortifying cybersecurity across new digital initiatives such as mobile, cloud and data analytics is the top priority their companies will face in the next two years.
The financial services sector has long been a target of cyberattacks, primarily for the value of the information available. In fact, a study by the cybersecurity company Forcepoint (a subsidiary of Raytheon, previously known as Websense) determined that financial institutions are hit by security incidents 300 times more frequently than businesses in other industries.
The cost of these security breaches can be enormous. Globally, U.S. companies experience the highest average cost at $7.9 million, but the average cost of a breach involving 1 million records is nearly $40 million, and can reach $350 million if the breach involves 50 million records. This, according to an analysis by the Ponemon Institute.
However, it’s not only large financial institutions that are at risk, but the smaller banks with less than $500 million in revenue as well. As digital security expert and founder of CyberScout, Adam Levin, has commented, “Don’t think for a moment that your organization isn’t that interesting to a hacker because no company is too small, too unimportant or too irrelevant to be a target.”
In an era of increasing mobility driven by customer preferences, many traditional banks are moving consumer-facing and engagement systems to the cloud. Though public cloud infrastructure offers financial institutions reduced CapEx and the ability to reallocate resources toward innovation, it remains an external service that can place sensitive data at risk. The most common cloud-specific security concerns include data breaches, hijacked accounts, malware and distributed denial-of-service (DDoS) attacks. For this reason, some organizations have built hybrid cloud solutions or completely removed their data from the cloud. This enables them to assume total control over security, reducing risks and making it much more difficult for those with malicious agendas to access sensitive content.
In fact, a study by 451 Research found that 20 percent of cloud users have moved at least one or more of their workloads from the public cloud to a private cloud. In the aggregate, companies that were embarking on this so-called cloud repatriation strategy planned to do so with 40 percent of their current public cloud workloads.
As a leading provider of hybrid IT data center services for carrier, content and enterprise customers, 365 Data Centers just formed a partnership with Tel-Networks, adding cyber security solutions to its comprehensive portfolio of colocation, cloud, network and managed services. This allows 365 Data Centers to provide its customers with best-of-breed, cutting-edge cyber security technology from a proven provider that works with some of the largest enterprise customers in the world. A fully managed cyber security solution, it can be implemented and deployed at one or more of 365’s 10 facilities in the United States.