The Impacts of Cybercrime on the Financial Industry

Did you know that approximately every 39 seconds, someone is affected by a cyberattack? Of those attacks involving malware, approximately 25% target financial services. This is a huge threat to the financial industry and to peoples’ livelihoods. These financial effects of cybercrime also illustrate why it’s so important to have a quality insurance policy that can protect your clients from loss due to cybercrime. Here’s what your clients should know about the effects of cybercrime on the financial industry.

Worrisome Cybersecurity Trends

When it comes to protecting your client’ finances, there are a variety of worrisome cybersecurity trends they should know about. They include:

Higher overall costs.

The average cost of cybercrimes affecting the financial industries is nearly 30% higher than the average costs of cybercrimes for all other surveyed industries.

Global issues.

Cybercrime is not just a growing issue in the United States. It is increasing throughout the entire world. So, too, are the costs associated with cybercrime. Countries experiencing the largest increase in cybercrime costs include the United Kingdom with a cybercrime cost increase of 31%, Japan with cybercrime costs up 30%, and the United States with cybercrime costs up 29%. Australia follows closely behind with cybercrime costs up 26%.

Increase of Incidences.

Cybercrime is growing at an alarming rate, and approximately 96% of surveyed banks report experiencing them. Web-based attacks follow closely behind. These events are costly, with the average malware event costing $192,000 and the average malware event costing $202,000. The financial effects of cybercrime can be devastating for any financial institution.

Hacker Automation.

Some cybersecurity experts warn that hacker automation will become a big trend in the coming years. Hacker automation makes it easier for cybercriminals to run fast fraud campaigns, even if they don’t have advanced technical backgrounds.

The economic impact of cybercrime can’t be overstated. This is especially true for financial institutions that are not adequately protecting by a comprehensive insurance policy. It’s wise for banks and other financial institutions to carefully review their insurance policies and make sure they adequately protect against financial losses due to cybercrimes. It’s also essential for financial institutions to become very familiar with the most common types of cybercrimes and learn how to defend themselves against them. By identifying threats as early as possible, financial institutions have a better chance of preventing or thwarting such attempts.

About Amsuisse

Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.