The connection between cybersecurity and poet Ralph Waldo Emerson is not directly evident, however he once said, “money often costs too much.”
This statement rings true across the financial services industry, as money is a key driver for cybercriminals acting with malicious intent. The always-on eye of Sauron on the financial services industry means there are greater implications to keep this industry safe as a top target – and to keep money where it belongs.
IT teams across these organizations have historically invested heavily in technology stacks to combat fraud and decrease the likelihood of an attack or breach, but attacks keep getting more sophisticated and frequent. This Sisyphean task of keeping up with modern-day breaches is complex, and protecting the money is costly, as Ralph’s quote woefully reminds us.
McAfee’s “Hidden Costs of Cybercrime” report supports this current state of the financial services industry, indicating that these organizations spend up to $3,000 per employee on cybersecurity. Another survey from the Financial Services Information Sharing and Analysis Center (FS-ISAC) found that, depending on company size, financial institutions spend between 6% and 14% of IT budgets for defense.
This spending shows no sign of stopping as organizations will always have the onus to protect data, employees, and their own bottom lines. As long as cybercriminals exist, the need for cybersecurity will be omnipresent. However, there is a major change the financial services industry can implement to manage threats faster with higher efficacy and become more proactive instead of reactive: Extended Detection and Response (XDR).