Cyber crime threat to financial services

Written by Bloomberg | Updated: Mar 28 2012, 05:44am hrs
Cyber crime is a growing threat globally and the second most commonly reported economic crime affecting financial-services firms, according to a survey by PricewaterhouseCoopers.

It accounted for 38% of criminal incidents for financial companies compared with 16% in other business sectors, the accounting firm said in a report published on Tuesday.

About half of the financial-services respondents said the potential risk of cyber attacks has risen over the past 12 months compared with 36% in other sectors. Cyber crime puts the financial sectors customers, brand and reputation at significant risk, Andrew Clark, forensic services partner at PricewaterhouseCoopers said in the statement. Regulators are increasingly viewing cyber crime as a key area of focus and financial institutions are expected to have appropriate systems and controls in place.

Cyber crime involves the use of computers or the internet and includes the theft of personal information, industrial espionage, reputational damage, financial theft and the disruption of services. About 29% of financial-firm respondents didnt receive cyber security training, PricewaterhouseCoopers said.

Asset misappropriation such as embezzlement and deception by employees remains the most popular way of committing fraud in an organisation, the survey found.