20 September 2007

Banks to increase security spending

Karl Flinders, Computer Weekly

Security is now a key issue in the boardrooms of the world's largest banks according to the latest research from Deloitte.

The survey, which included a quarter of the top global banks, said 98% of banks are increasing investments in security owing to increased board-level focus.

Mike Maddison, UK head of security and privacy services at Deloitte, said that if you look at the level of interest in the boardroom it is an indication of how important security is.

He said high-level security breaches as well as regulations from the Financial Services Authority and Information Commissioners Office are behind this increased focus.

"Information is a core asset to a bank so it is very positive that they are starting to take these steps," he said.

The biggest concerns among banks are security threats from within. "The overwhelming majority of financial services organisations (91%) are concerned about the risks arising internally," said the report.

"Although errors and omissions by employees are identified as a major factor contributing to ongoing security failures, almost a quarter (22%) of respondents provided no employee security training over the past year and only one-third of respondents (30%) say their staff is well skilled with adequate competencies to respond to security needs."

This article first appeared on the web-site of Computer Weekly, at http://www.computerweekly.com/Articles/2007/09/20/226912/banks-to-increase-security-spending.htm. © Reed Business Information 2007.

HSBC develops new security authentication system (6 September 2007)

Lloyds TSB turns fraud-detection software on staff (8 June 2007)

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