Are Cyber Attacks Damaging Client Trust to the Breaking Point?
Data breaches are becoming more common in the financial services industry, increasing 151 percent between 2007 and 2008. These breaches are also becoming more costly. Given the vast amount of information and the sensitivity of the information maintained by financial services companies, there is an additional burden on these institutions to protect the data with which they are entrusted. At the same time, new laws and regulations continue to emerge with the aim of strengthening consumer and business protections. In order to maintain customer trust, old approaches and responses to cyber risks will need to be fundamentally reexamined. Companies should develop a proactive approach that addresses cyber protection and fraud prevention simultaneously. The approach taken should move companies toward an ability to understand the potential threats to their environment, to continuously prepare for and respond to these threats, and to remediate breach risks. As threats change, so too should compan
