2017 set a new record for the number of data breaches in a single year, with a 44.7% increase over 2016; financial institutions including banks, credit unions and credit card companies were among the most impacted. For example, a recent study discovered that 56% of financial institutions saw an uptick in the number of Distributed Denial of Service (DDoS) attacks waged against them in 2017. Additionally, last year cybercriminals used a spearphishing campaign dubbed “Carbanak” to steal approximately $1.3 billion from 100 banks in 30 countries. In light of these alarming trends, financial institutions must implement the right solutions to protect their systems and their customers from threats including identity theft and fraud. Please find the full white paper available for download here.
Paige Schaffer, President and COO of Generali Global Assistance’s Identity and Digital Protection Services Global Unit, commented on today’s news, “For years, the financial services sector has been a primary target for cyberattacks largely due to the tremendous value of the information that these organizations hold as well as personal funds impacted. In fact, financial institutions are reportedly hit by security incidents a staggering 300 times more frequently than businesses in other industries. These figures underscore the importance of financial organizations staying aware of wide-ranging cyber threat vectors and potential impact of those threats, so they can implement best practices that keep their information secure and reduce potential damages if they do suffer a cyberattack.”
Data breaches can cause lasting harm for any type of business, but the costs for financial institutions are often exponentially greater. While the average cost to U.S. businesses per record lost or stolen in a breach was $225 across all industries in 2017, the cost per record for businesses in the financial industry was $336. This cost difference is particularly significant considering the average data breach cost for U.S. businesses in 2017 rose 5%, to a staggering $7 million. Customer churn is a significant contributor to this increased cost for the financial sector. A 2016 survey revealed that 12.3% of respondents left their credit unions and 28% left their banks as a result of unauthorized activity on their accounts. Financial institutions must consider not only how they can decrease their risk of a cyberattack, but also how they will mitigate fallout with their customer base if they do fall victim. Offering customers identity theft prevention and resolution resources prior to a breach, such as those provided by Generali Global Assistance’s industry-leading identity protection platform, has proven a successful tool for reducing post-breach customer churn.
Ms. Schaffer concluded, “Loss of trust and damaged reputations following a data breach can be particularly severe for financial organizations given the sensitivity of the customer information to which they have access. With the threat landscape constantly evolving in this industry, financial institutions can never be too prepared to proactively address new, emerging cyber risks, and the potential impact they can have on their institutions and customers.”
To learn more about Generali Global Assistance’s identity protection offering, please visit http://us.generaliglobalassistance.com/solutions/identity-protection.
About Generali Global Assistance
Generali Global Assistance has been a leading provider of identity and digital protection solutions, travel insurance, and other assistance services for more than 25 years. The Company offers a full suite of innovative, vertically-integrated identity protection solutions, beneficiary companion services, travel insurance, and emergency services. Generali Global Assistance is proudly owned by Europ Assistance Holding, a division of the multinational Generali Group, which for over 185 years has created a presence in 60 countries with over 76,000 employees. Our success has been built on the foundation of trust that clients have placed in our ability to provide assistance in the most difficult of circumstances.
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Jay A. Morakis
M Group Strategic Communications (for Generali Global Assistance)
GGA Marketing Contact
VP, Global Marketing, Identity and Digital Protection Services Global Unit
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SOURCE Generali Global Assistance