Story image

Capgemini says banks & insurers must deal in 'currency of trust' for data security

13 Feb 17

Banks and financial insurers may still be seen as trustworthy by customers but the story from inside the industry is very different, a new study from Capgemini has shown.

The company conducted a global survey of 180 senior data privacy/security professionals and 7600 customers, which found that only 29% of institutions offer strong data privacy practices and a sound security strategy.

What’s more, 21% of respondents were ‘highly confident’ that they could detect a cybersecurity breach. From these alarmingly low statistics, Capgemini is now asking whether retail banks and insurers are safe when it comes to customer data.

On the other side of the counter, 83% of consumers trust their banks and insurers’ data protection capabilities. One in four institutions have reported hackings, but only 3% of consumers believe their own provider has been breached.

The report says that 49% of institutions take between three months to one year to patch vulnerabilities. The more time it takes to patch vulnerabilities, the higher the risk of critical systems being compromised. This is because around half of all exploitation attempts by attackers occur within 10 to 100 days,” it adds.

Capgemini believes that organisations now have3 a clear incentive to improve their cybersecurity defences – all the more so when prohibitive fines and penalties that come with data breaches.

The majority of insurers are taking a passive approach to cybersecurity, as 43% could identify a board that actively participates in cybersecurity matters with an articulated cybersecurity vision and strategy. Conversely, 71% of banks could identify a board.

However, banks are also under the spotlight for their data protection habits: 78% retain data after a customer has left the relationship – 62% hold on to this data for as much as 10 years.

In addition, only 21% updated the data consent clause in the privacy policy during a policy refresh.

In India, 78% of consumers would switch banks in the event of a data breach, which means security is more important than ever.

Giving customers more control; communicating issues clearly and sooner; providing more value for data exchanges and educating customers about security issues are crucial to maintaining a healthy relationship.

Capgemini recommends that organisations:

  • Align data practices with customer expectations
  • Find innovative ways to provide non-intrusive security to customers
  • Build required capabilities to monitor risks in real time
  • Revisit the data governance model

“Building your reputation for data privacy and robust security is definitely challenging. But, those who strike the right chord with consumers will enjoy a competitive advantage over their peers and come out triumphant in the trust game,” the report concludes.

Ramping up security with next-gen firewalls
The classic firewall lacked the ability to distinguish between different kinds of web traffic.
Gartner names LogRhythm leader in SIEM solutions
Security teams increasingly need end-to-end SIEM solutions with native options for host- and network-level monitoring.
Cylance makes APIs available in endpoint detection offering
Extensive APIs enable security teams to more efficiently view, enrich, and contextualise real-time intelligence collected at the endpoint to keep systems secure.
SolarWinds adds SDN monitoring support to network management portfolio
SolarWinds announced a broad refresh to its network management portfolio, as well as key enhancements to the Orion Platform. 
JASK prepares for global rollout of their AI-powered ASOC platform
The JASK ASOC platform automates alert investigations, supposedly freeing the SOC analyst to do what machines can’t. 
Pitfalls to avoid when configuring cloud firewalls
Flexibility and granularity of security controls is good but can still represent a risk for new cloud adopters that don’t recognise some of the configuration pitfalls.
Securing hotel technology to protect customer information
Network security risks increase exponentially as hotels look to incorporate newer technologies to support a range of IoT devices, including smart door locks.
Why total visibility is the key to zero trust
Over time, the basic zero trust model has evolved and matured into what Forrester calls the Zero Trust eXtended (ZTX) Ecosystem.