Essay on "Analyzing the Cyber Security Phenomenon"

Essay 6 pages (2266 words) Sources: 6

[EXCERPT] . . . .

Dean, who equally has some accounting background, made more than 10-K records for Sony SNE 2.83%, Target TGT 0.84% and Home Depot HD 1.49%, after their new well-advertised security breaches. Looking out for breach-related expenditure in these firms' quarterly financial reports, Dean found out that the real expenses these firms reported were less than 1% of the annual revenues of each of the companies. After reimbursement from insurance and minus tax deductions, the losses become even less (Dean, 2015).

The Causes of Cyber-Attacks on Financial Institutions

According to Websense Security Lab's recent report, the total number of attacks experienced in financial institutions is about 4 times higher than what is obtainable at other companies in all other sectors. Additionally, a third of every initial-stage investigation attacks are targeted at financial institutions, as reported by the company. Modern-day cybercriminals still copy Willie Sutton's pattern of robbing banks because banks are where the money can always be found. According to Carl Leonard, a Websense principal security analyst, criminals don't just go after banks for the money. They also use banks as a means of reaching other targets. For instance, a hacked email account at a bank gives hackers the avenue to ride on the trust they enjoy from its loyal customers to contact their retail and business customers (Korolov, 2015).

On a global scale, the financial services sector is now the primary target of most cyber-attacks. One other issue of grave concern to these financial services institutions is the great damage the cybercrimes can do to a company's good reputation, together with customer churn, two of which can make very significant impact, and possibly have an upsetting impact on revenue. Man-in-the-Browser attacks remain one of the deadliest forms of malware for online financial and banking services. A Man-in-the-Browser attack takes place when an Internet browser is affected by a malicious code. The code amends the actions carried out by the user of the affected computer and, in few cases, can initiate some actions without the user's permission. Whenever a user logs into their bank account through an infected Internet browser, this can initiate illegal transactions that can lead to online theft (Reply, 2016). While all organizations face the problem of cyber-attacks, financial institutions face the major risks, as they do not just hold funds, but also hold some private data on both the commercial entities and the consumers. In the last couple of years, cyber thieves have utilized online banking and payment platforms to make transfer of funds directly from bank accounts of financial institutions to their own private accounts, and sometimes seize the control of ATM machines and manipulate the machines to dispense cash at certain times when a recipient is standing handy. Kaspersky lab, the Moscow-based security company, claims that one well-orchestrated cyber-attack against financial institutions initiated late in 2013 may have led to up to $I billion losses (Kaspersky Lab, 2015) and, according to the Identity Theft Resource Centre, the number may be higher than this, when the number of unreported data breaches are considered (Paul Hastings, 2015).

References

Cordle, I. P. (2014, August 7). TotalBank responds to computer security breach, Miami Herald. Retrieved from http://www.miamiherald.com/news/business/article1978822.html

Crossman, P. (2015, March 5). Is Apple Pay a Fraud Magnet? Only If Banks Drop the Ball. Retrieved from American Banker: http://www.americanbanker.com/news/bank-technology/is-apple-pay-a-fraud-magnet-only-if-banks-drop-the-ball-107312

Dean, B. (2015, March 4). Why companies have little incentive to invest in cybersecurity. Retrieved February 18, 2016, from http://theconversation.com/why-companies-have-little-incentive-to-invest-in-cybersecurity-37570

Fraud Alert. (2012). Cyber Criminals Targeting Financial Institution Employee Credentials to Conduct Wire Transfer Fraud.

Glazer, E. (2014). J.P. Morgan's Cyber Attack: How the Bank Responded. WSJ. Retrieved from http://blogs.wsj.com/moneybeat/2014/10/03/j-p-morgans-cyber-attack-how-the-bank-responded/

Kaspersky Lab. (2015, February). Carbanak Apt The Great Bank Robbery 3. Retrieved from http://25zbkz3k00wn2tp5092n6di7b5k.wpengine.netdna-cdn.com/files/2015/02/Carbanak_APT_eng.pdf

Korolov, M. (2015, June 23). The average number of attacks against financial services institutions is four times higher than other industries. Retrieved Febuary 18, 2016, from CXO Media, Inc.: http://www.csoonline.com/article/2938767/advanced-persistent-threats/report-banks-get-attacked-four-times-more-than-other-industries.html

Paul Hastings. (2015, April 28). Caught in the Crossfire: The Rising Threat of Cyberattacks on Financial Institutions and the Heightened Expectations of Financial Regulators. Retrieved February 18, 2016, from Paul Hastings: http://www.paulhastings.com/publications-items/details/?id=790ae469-2334-6428-811c-ff00004cbded

Pettersson, M. (2012). Banks likely to remain top cybercrime targets. Mountain View, CA: Symantec Corporation.

Reply. (2016, Febuary 4). Underground Security Intelligence for Financial Institutions. Retrieved Febuary 18, 2016, from Reply S.p.A.: http://www.reply.eu/en/content/underground-security-intelligence-for-financial-institutions

U.S. Financial Sector has raised its Cyber Threat Level from Elevated to High. (2012, September 21). Retrieved from Cyber Warzone: http://cyberwarzone.com/us-financial-sector-hasraised-its-cyber-threat-level-elevated-high READ MORE

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