Financial firms to boost cybersecurity spending

Companies within the financial services sector are planning to bolster security spending in order to combat the threat posed by cybercrime activities over the next two years, according to PwC.

The consulting firm claimed that, following a series of high profile security breaches, financial organisations will take steps to protect themselves and this will require them to increase their budgets.

The PwC study surveyed 758 financial institutions including the world’s largest banks, insurers, money managers and other financial service companies. It found that there had been a 140% rise in the number of financial companies which had reported losses of more than $10 million as a result of cybercrime incidents.

The PwC report added that the financial services industry accounted for more than a third (34%) of all cybercrime breaches, in 2013.

Given the increased number of cyber attacks specifically aimed at financial firms, PwC said there has been a growing realisation that current investment levels are no longer sufficient.

Joe Nocera, a technology consulting partner at PwC, claimed that the average cybersecurity spending increase for the 758 firms which participated in the study would likely be in the region between 10% and 20% per annum for the next two years.