Decision makers at banks ‘in the dark’ about data breaches

Decision makers at banks are in the dark when it comes to data breaches at their organization, according to KPMG’s 2016 Banking Outlook Survey.

It revealed that this is especially the case when it comes to the second tier of senior management.

For example, while 12% of CEOs were unaware as to whether their networks had been compromised in the past two years, the number was markedly higher among their immediate colleagues.

The survey found that 47% of banking executive vice presidents and managing directors could not confidently state whether their respective institutions had experienced a data breach.

Among senior vice presidents and directors, the number was higher. Approximately 72% admitted to not knowing whether such an incident had occurred.

“Banks are under an onslaught of attacks from bad actors, so the fact that 12% of banking CEOs reported that they don’t know if they’ve been compromised is troublesome,” commented Charlie Jacco, financial services cyber leader at KPMG.

“Cyber is a business bottom-line issue: a true CEO issue.”

The survey highlighted the top concerns that CEOs have with data breaches. Possible financial loss is the biggest cause of unease, followed by reputational damage and litigation.

Jitendra Sharma, KPMG’s Advisory Line of Business leader for Financial Services, said that banks are particularly vulnerable to cyberattacks because of “the amount of funds flowing through the institutions”.

“Since banks are under increased security pressures, it’s more important than ever that they employ a strong, top-down internal strategy to better protect themselves against bad actors,” he concluded.

Author , We Live Security

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