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January 25, 2016
FICO Survey: 100 percent of respondents say data breaches in other industries will harm financial institutions this year
SINGAPORE — 25 January, 2016 —
For more information: http://www.fico.com/en/fraud-security/cyber-security
In a survey of 36 fraud executives from 18 leading APAC banks at the 2015 FICO Fraud Forum, 100 percent of 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, and that FSI card portfolios are more vulnerable when customer data is collected by so many entities. 38 percent of respondents ranked large retailers as being at the greatest risk for a data breach in 2016, with another 35 percent of respondents choosing telecommunications companies.
By contrast small business (25 percent) and healthcare (22 percent) were voted as the industries least likely to be at risk of a data breach in 2016. Hospitality and travel, along with insurance, were ranked as medium risks for data breaches in the year ahead.
Raed Taji, Head of Global Fraud Consulting for FICO in Asia Pacific, said “Rapid internet and mobile penetration have seen many industries grow their online capabilities to include payments, online applications and account management services, yet many organizations only have basic security in place. These businesses are soft targets compared to the banks because they lack the resources or historical security focus needed to protect critical systems and customer data.”
The rapid growth of mobile-first consumers in APAC is also seen as a key factor as the volume of mobile threats increases. 72 percent of survey respondents predicted a significant rise in threats from mobile commerce and mobile-first consumers in 2016, with another 22 percent expecting a modest increase.
The last year alone has seen an average 22 percent increase in shopping on mobile phones across 13 APAC markets, according to a 2015 study from Visa. Indonesia, China and Taiwan reported the highest rates of growth for 2015 at 36 percent, 34 percent and 28 percent, respectively.
APAC fraud executives were also asked which factors might inhibit their own organization's ability to stop a data breach. 24 percent nominated low security awareness amongst employees as the number-one factor, with another 21 percent saying a lack of budget was to blame. 40 percent ranked too many siloed operations as their number-two issue.
Raed Taji, Head of Global Fraud Consulting for FICO in Asia Pacific, said, “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. 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.”
Dan McConaghy, president for FICO in Asia Pacific, said, “Cybercrime is no longer a problem for the IT or fraud department alone. It is a boardroom issue and its spread to industries outside banking means a wholesale review to avoid an increased risk of financial damage or loss of reputation. Stopping breaches and fraudsters will require analytics-based solutions, especially as mobile ecommerce grows across Asia Pacific and changes who the criminals target.”
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