Data breach risks among main security concerns for financial firms, study shows

3 March 2010

Outsourcing to third party suppliers and data breach risks are among the main IT security concerns for firms working within the financial services industry, a new study has shown.

Research conducted by the Ponemon Institute on behalf of Compuware revealed that many respondents do not deploy sufficient IT security to ensure complete protection from potential threats to their data.

Many of the overlooked areas include identity compliance, data loss prevention (DLP) and intrusion detection, the study claimed.

Rose Rowe, vice-president of Mainframe Strategy at Compuware, said: “Safeguarding customer data is the best approach for financial services and other organisations to retain valuable customers, protect the company’s reputation, and avoid negative regulatory impacts.”

Larry Ponemon PhD, an analyst at the Ponemon Institute, added that organisations should work on “[plugging] the holes in their security policies”.

Further findings from the study showed that while 60 per cent of the organisations questioned employed a chief privacy officer, half of these staff members admitted they did not possess enough resources to do their job properly.

The study questioned chief security, information and executive officers from more than 80 multinational organisations working within the financial services industry in North America.

By Jim Ottewill

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