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

Topics
Net Banking

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 banking services could cost the organisation $1,754,000 (about Rs 11.31 crore), a report by cyber security firm Kaspersky has found.

A study by the security firm showed that 61 per cent of cybersecurity incidents affecting online banking came with additional costs for the institution targeted - including data loss, the loss of brand/company reputation and confidential information becoming leaked among others.

Banking institutions are also worried about the growing menace of cyber attacks. The top concerns for financial services included attacks on digital/online banking services (45 per cent) and point-of-sale (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 financial institutions to provide customers with secured access to mobile and online banking services.

The actual cost of a cyber security 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.

"...Financial institutions (need) to consider the cost implications of cyber security threats and put appropriate measures in place to protect themselves and their customers from incidents involving online banking - particularly from DDoS (denial of service) attacks, which can threaten online banking services," it added.

Kirill Ilganaev, Head of Kaspersky DDoS Protection at Kaspersky Lab, said if a bank's online services come under attack, it is very difficult for customers to trust that bank 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 banking cyber security incident, they first need to become more prepared for the dangers DDoS attacks pose to their online banking services," he added.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

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