A new survey from CapGemini has found that consumers are frequently overconfident in their bank’s cyber security.
Only one in five banks and insurers are confident they could detect a cyber breach, according to a new report on the state of security in the banking sector. Research by Capgemini found that just 21 per cent of executives are highly confident that their organisations could detect a breach.
The findings come despite a high level of consumer trust in financial institutions, with 83 per cent trusting their banks’ and insurers’ levels of security.That is compared to 28 per cent for telecoms firms and 13 per cent for retailers.
“Consumers implicitly trust banks with their money and data, but this faith is rooted in a mistaken belief their provider can be 100 per cent secure,” said Mike Turner, cyber security chief operating officer at Capgemini. “While banks are evolving to combat the sophisticated threat cyber criminals pose, public understanding of the threats and challenges remains low.”
This point was illustrated by the fact that although one in four financial institutions admitted to being the victim of a hack, only three per cent of consumers thought their banks had been breached.
The researchers warned that the upcoming EU General Data Protection Regulation (GDPR), which comes into full force in May 2018 and imposes more breach reporting obligations on businesses, could be a game changer for the public’s perception of security.
“When [the] GDPR is introduced and all breaches are likely to be made public soon after they occur, many people will be in for a surprise,” said Zhiwei Jiang, global head of financial services, insights and data at Capgemini. “The introduction of GDPR legislation next year is a prime opportunity for business transformation for banks and insurers to become the digital fortresses customers believe them to be.”
This increased transparency could come as a shock to consumers, 65 per cent of whom view trust in data privacy and security as an extremely significant factor when choosing a bank.