Of all the industries prone to data breaches — maybe better make that of all industries, period, since hacking and other incursions have become so prevalent — the financial industry stands out, and not for a good reason.
In fact, according to a report from eMoney Advisor, financial services firms are the most susceptible to the bad publicity that results from an exposure of what should have been private data. In fact, at 5.7%, the industry has the highest abnormal churn rate — a measure of lost customers — in the U.S. economy.
And even though cyberattacks make lots of headlines, that doesn’t mean that firms are prepared to ward them off. Says the report, they lack the resources, infrastructure or experience to keep them at bay.
The average financial firm breach costs nearly $7 million, while a recent report finds that in 2017, 25% of such firms were hit; in 2016, 20% of firms suffered a breach.
The purpose of data breaches can vary depending on the industry, with hackers of retail and government systems usually looking for data to sell online. Within the financial industry, hackers are typically looking to steal money or data directly from customers, eMoney says.