According to a 2016 survey, the cost of a single cyber breach on a financial institution was estimated to be around one million dollars.
Sadly, the financial sector which is sensitive client and institutional data, is seen as a prime-target for cyber attacks. Cybercriminals, today, focus on developing new and undetectable exploits which artfully evade security barriers in such organizations.
The WannaCry Attack in April showed everyone is vulnerable; no business, no household, no industry is immune. Singapore is no different. It experienced around 500+ infected systems during those three days of horror. Singaporean Financial Services Instutions (FSI) are taking the attack pretty seriously.
Let’s see what compelled Singaporean FSIs to dramatically increase spending on cybersecurity!
What is motivating the investment in FSI Cyber Security?
Cyber security issues are not unusual. They have been a massive challenge for companies all over the globe, for decades. And the accelerating pace of technology has led to more sophisticated and targeted attacks.
Internet of Things (IoT)
The Internet of Things (IoT) is maturing at an unchecked rate. By 2010 it’s anticipated that 24 million new IoT devices will be installed. Many industries are relying on this innovation to modernize and restructure their businesses, driving great effeciencies and larger profits. However, this also means more computers and technology, and an increased risk of cyber attacks.
It’s hard to deny cloud technologies effectiveness in making a businesses more available and more cost efficient. Hence the significant surge in cloud adoption over the past few years. The cloud offers scalability, flexibility, and reliability option along with metered pay per use options. Organisations love clouds as it is cheap, fast and easy to use, a three-in-one improvement package. A compelling proposition, but what about security?
Financial institutions need stronger cyber security options, a framework that promotes awareness and provides visibility across all infrastructure assets. Offering a single line of defence and response, a system that can be effectively managed and maintained as a single platform; fully automated (with embedded real-time alerts) ; and security options that offer seamless integration and intelligence sharing across home and other third-party networks. We need to maintain visibility across the data, know about who’s using it and whether the data is safe or not.
Strong cyber security costs a lot of money, but looking at the ‘big picture’ this expenditure is crucial.
Singaporean FSIs Take on Cyber Security
According to sources, around 83 percent of the financial institutions in Singapore are planning to increase their cyber security expenditure. The survey showed that around 90 percent of them are actually looking to increase staffing to improve online security.
By controlling network access they can provide a more robust, safer data access and information sharing. Traffic is expected to be more segmented in the future. So to restrict reduce the risk of malicious logins and breaches, FSIs are most definitely looking for more effective “active directory like” single-sign-on solutions that could maintain business efficiency without compromising their cyber security integrity.
In the times ahead, Singaporean FSIs are expected to get firmer on the cyber security. They are planning to keep investing to protect their clients and the businesses.
This is not unique to Singapore. A recent survey shows that by 2020, organizations are expected to spend around 101.6 billion dollars on cybersecurity software.
A necessary evil, to protect against the cyber breach threats and to save a companys reputation!