In a survey conducted by the Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, 56% of respondents rated cyber risk a top-five concern, while 22% indicated it was their biggest concern.
A recent quarterly Cybersecurity Market Report published by Cybersecurity Ventures projects that $1 trillion will be spent on cybersecurity between 2017 and 2021. According to Steve Morgan, founder and editor-in-chief of Cybersecurity Ventures, the increase in cybercrime, such as ransomware and malware, and the large number of digital devices being rapidly deployed by organizations and consumers, are making it difficult for IT analysts to accurately project spending.
“Many corporations are hesitant to announce breaches they’ve suffered — and the amounts of their increased security budgets — for fears of reputational damage and of antagonizing cybercriminals,” Morgan said. “By 2020, we expect IT analysts covering cybersecurity will be predicting five-year spending forecasts (to 2025) at well over $1 trillion.”
One industry in particular that hasn’t shied away from sharing its affinity for cybersecurity is financial services. In recent years, JPMorgan indicated it planned to increase its annual budget to battle cybersecurity from $250 million to $500 million, in order to enhance its defense capabilities.
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Bank of America CEO Brian Moynihan also said that the company is not capping itself when it comes to fighting cybercrime. It’s “the only place in the company that doesn’t have a budget constraint…you’ve got to be willing to do what it takes.”
In a recent newsletter, the Financial Services Information Sharing and Analysis Center (FS-ISAC) announced the creation of the Financial Systemic Analysis and Resilience Center (FSARC), whose mission is “to proactively identify, analyze, assess and coordinate activities to mitigate systemic risk to the U.S. financial system from current and emerging cyber security threats through focused operations and enhanced collaboration between participating firms, industry partners, and the U.S. Government, including the Department of Treasury, the Department of Homeland Security and the Federal Bureau of Investigation.”
FSARC’s founding members include Bank of America, BNY Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street, and Wells Fargo, as well as various government agencies.
The financial services industry as a whole will continue to increase its budget to help prevent and fight cybercrime.
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