Just 1 in 5 Financial Institutions Confident they can Detect a Data Breach

Yet, Consumers Implicitly Trust Them According to a CapGemini Report

According to the CapGemini report, while banks and financial institutions enjoy an extraordinary 83% positive level of trust in the cybersecurity of their systems, just 1 in 5 banking executives surveyed are “highly confident in their ability to detect a breach, let alone defend against it.”

For comparison, e-commerce firms enjoy just a 28% positive level of trust while telecom companies and retailers score a paltry 13%.

The full CapGemini Report Can be downloaded here

Trust is a HUGE Factor In Consumer Choice

According to the report authors, trust in an institution’s ability to protect private data and provide a secure environment is a significant factor for 65% of consumers when choosing which bank to do business with.

And yet, while approximately 25% of all financial institutions have reported being a victim of some level of hack only 3% of consumers believe that their own financial institution has ever been breached. It would seem that indeed there is a “trust halo” being enjoyed by banks that the numbers suggest they do not deserve.

If this halo were to become tarnished banks could be in trouble. According to the report 74% of consumers would switch their bank or insurer if they became aware of a breach.

GPDR Regulations Will Likely Drive Transparency

The GPDR regulations set to be introduced next year should drive more transparency and quicker reporting of breaches and this may result in some tarnished halos.

“When GDPR is introduced and all breaches are likely to be made public soon after they occur, many people will be in for a surprise,” said Zhiwei Jiang, Global Head of Financial Services, Insights & Data at Capgemini. “The introduction of GDPR legislation next year is a prime opportunity for business transformation for banks and insurers to become the digital fortresses consumers believe them to be.”

Konsultek Knows Security

From financial institutions to university and healthcare organizations, Konsultek builds customized security solutions that protect networks and the data they house. If you are interested in learning exactly how your network may be vulnerable just give us a call and we’ll discuss how we can find your vulnerabilities before they are found by cybercriminals and hackers.

 

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