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November 27, 2012

Growing cyber threat pushes financial companies to spend $17bn on security: report

Spending will be mainly on counter measures, transaction and data security, as well as on policies and procedures

By CBR Staff Writer

With the growing threat from cyber attacks, financial institutions will ramp up investment in critical security infrastructure in coming years, with worldwide spending predicted to reach $17.14bn by the end of 2017, according to a report by ABI Research.

According the report, spending will be mainly on counter measures, transaction, and data security, as well as on policies and procedures.

The report revealed that financial institutions have been targeted by cyber-criminals since they first entered into the digital landscape and that cyber attacks are carried out by well-organised criminal elements through targeted and sophisticated malware.

Cyber criminals use exploit kits, banking Trojans, and botnets and also resort to social engineering tactics for carrying out persistent and highly evolved attacks.

ABI analysts added that these tools are being used by nation states as cyber weapons to cripple enemy economies.

ABI Research cyber security senior analyst Michela Menting said banks and other financial institutions are always a step behind, despite deploying some of the most advanced cyber security solutions available on the market. "The lack of larger-scale cooperation and intelligence sharing in the financial sector is a huge disadvantage in combating cyber threats," Menting added.

"While cyber-criminals are actively sharing tools and information about vulnerabilities, banks are trying their best to cover up breaches and save their reputation," she said.

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The report further added that with digitisation of critical infrastructure other sectors like energy and healthcare could also face similar attacks.

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