Money isn’t your most important asset – Trust is
Financial Institutions are prime targets for Magecart and other cyber attacks. One reason is the fact that they go through massive digital transformation and handle a high volume of transactions, assets and sensitive data. Today more than ever before, more people handle their financial transactions online. These same people expect their trusted financial advisors and their online experience to be secure, private, and consistent each and every time.
A Financial Institution’s business model is based on trust. There is nothing more critical to Financial Institutions than the security of their sensitive customer data, not only because it’s expected by their customers but also because they operate in a highly regulated industry. Attackers can destroy relationships, violate trust and introduce doubt with amazing speed and precision.
The cost of cyberattacks is highest in the financial industry, reaching $18.3 million annually, per company. Successful attacks on banks and financial institutions are the most costly of all, not only because of the financial losses but also because these breaches erode user trust.
Average Annualized Cost by Industry Sector
There are many different types of attacks aimed at Financial Institutions websites:
- Payment card skimming
- Form field manipulation
- Web injection
- Content defacement
- Malware and ransomware distribution
- Watering hole attacks
Formjacking is The New #1 Threat
Formjacking and Magecart attacks can be very wide-ranged and affect millions of people at once, or they can be highly targeted and affect a very specific group of people. This is also one of the reasons why they are so difficult to detect.
The major implications of such attacks include:
People’s personal data is just that – personal. When a financial institution fails to protect it from loss, damage or theft it is more than an inconvenience. That’s why laws and regulations are very clear – when you are entrusted with personal data you must look after it. Every website in the financial landscape is required to meet certain standards in order to be considered “in compliance,” and fines can be levied against a business or its owner if they fail to comply.
If breached, a business has a whole host of other problems that will impact its bottom line. This usually involves hiring additional personnel to investigate the breach, stop it, and prevent it from happening in the future. It may have to pay for a forensic investigation, data recovery services, credit monitoring for impacted parties, and more.
Financial Institutions invest a lot of resources in expanding their customer base, and even more in retaining existing customers. This is because they know that these customers can easily leave: a data breach is an easy way to convince customers to go elsewhere, where their credit card information, address, or other sensitive data will be secure. Surveys reveal that 64% of consumers confess to be unlikely to do business again with a company from which their personal data was stolen.
Customers put a lot of trust in the online financial services they transact with, providing them with personal data and sensitive payment information with every transaction. Earning customers’ trust is critical for maintaining a long-lasting relationship, and once lost, earning it back is a very difficult task.
Damage to brand reputation:
To protect the brand and ensure a safe browsing experience, financial institutions must establish and maintain a strong website security posture. Reputation is a fragile thing – it takes years to build, and moments to destroy. When a breach occurs, the target audience feels betrayed and angry. The initial cost can be seen in the form of lawsuits, but there is a far greater cost that can last years. Furthermore, this can negatively affect the business reputation of each person on the executive team and hinder their future endeavors. Stocks drop, the team is affected, and revenues plummet. Unlike a fine, which can be paid and forgotten, reputation cannot be fixed so easily.
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