You are here: Home » Finance » News » Banks
Business Standard

Each cyber threat to online banking costs a bank nearly $1.75 mn: Kaspersky

Banks also need to ensure to provide customers with secured access to mobile & online services

Press Trust of India  |  New Delhi 

Online banking
The actual cost of a cybersecurity incident to a financial institution can be as much as $926,000

An incident involving a bank's online services could cost the organisation $1,754,000 (about Rs 11.31 crore), a report by firm has found. A study by the security firm showed that 61 per cent of cybersecurity incidents affecting online came with additional costs for the institution targeted - including data loss, the loss of brand/and confidential information becoming leaked among others. institutions are also worried about the growing menace of cyber attacks. The top concerns for financial services included attacks on digital/online services (45 per cent) and (POS) systems (40 per cent), phishing/social engineering of customers (35 per cent), along with attacks on core transactional/back-office systems (35 per cent) and on ATMs (26 per cent). Apart from their own complex systems that need to be protected, there is also pressure on these to provide customers with secured access to mobile and online services. The actual cost of a incident to a financial institution can be as much as 926,000.

While business customers of these institutions could see averages losses of $10,312, consumers who have fallen victim typically see losses of about $1,446. "...(need) to consider the cost implications of threats and put appropriate measures in place to protect themselves and their customers from incidents involving online - particularly from DDoS (denial of service) attacks, which can threaten online services," it added. Kirill Ilganaev, Head of DDoS Protection at Lab, said if a bank's online services come under attack, it is very difficult for customers to trust that with their money. "... So it's easy to see why an attack could be so crippling. If are to protect themselves effectively from the price tag of an online cyber security incident, they first need to become more prepared for the dangers DDoS attacks pose to their online services," he added.

First Published: Sun, June 25 2017. 16:53 IST
RECOMMENDED FOR YOU