Executives are more willing to pay for cybersecurity today than three years ago.

A recent study on identity theft concluded that every dollar banks lose to fraud costs them triple to correct. Bank executives, in charge of preventing identity theft, are sick of losing money.

Eighty-eight percent of those executives are willing to invest in cybersecurity, compared to 85 percent in 2015, according to staffing firm Robert Half Technology.

“Hackers are getting smarter and cyberattacks are growing in sophistication, so companies can’t rely solely on their employee’s knowledge of security best practices,” says Jeff Weber, executive director of Robert Half Technology. “Having a strong IT security team in place can provide an even greater defense against attacks, but these professionals can be hard to find in today’s job market.”

Have the tides turned in the cybersecurity war?

Just recently, Debt.com reported that big business doesn’t take identity theft seriously. It’s possible that more companies are starting to pay attention to the increasing financial threat identity theft is to their business. It certainly costs banks plenty to correct.

Banks, credit unions and investment firms pay $2.67, on average to correct damages from fraud. Some larger financial service companies lose $3.04 for every dollar in fraud charges. This is especially true for those providing online services. Companies who offer fewer online services pay $2.35 for every dollar in fraud charges.

Customers are becoming more interested in using online and mobile banking. And the more banks provide these digital services for their customers, the more their cybersecurity efforts will need to increase, according to Lexis Nexis Risk Solutions.

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“As digital channels become more prevalent, particularly with consumer demand for mobile banking, fraud is a significant drain on financial services companies’ revenues — more than just the value of the fraud itself,” says Paul Bjerke, VP of fraud and identity management strategy for LexisNexis Risk Solutions. “These companies need to track and combat fraud effectively to reduce the cost on their business and protect their customers in the new digital age.”

Will identity theft ever end?

The more we hear about identity theft, the more crimes seem to occur. The better companies and consumers get at combatting identity theft, the savvier thieves get. Last year there were 1.3 million new identity theft victims, and cyber thieves managed to steal a total of $16.8 billion, according to financial advice company Javelin Strategy & Research.

“Attacks are just getting more complex,” says Al Pascual, research director and head of fraud & security, Javelin Strategy & Research. “Fraudsters are growing more sophisticated in response to industry’s efforts to implement better security.”

Companies have increased the use of multifactor authentication processes by 25 percent over the past three years. That’s where employees have to login with a username and password, then are often required to prove their identity by answering a subsequent phone call, or through an application on their smartphone. Companies have increased the rate of IT security personnel by 13 percent since 2015, too.

Robert Half’s executive director proposes for companies to also increase pay while scouting competent IT workers, who truly understand the cybersecurity world.

“Employers must offer competitive salaries and act quickly when they come across a top candidate,” Weber says. “If you’re interested in a career in security, make sure you’re up to date on the latest certifications, tools and procedures. There is currently strong demand from organizations across industries and it will likely only continue to increase.”

Meet the Author

Joe Pye

Joe Pye

Writer

Pye is a freelance writer for Debt.com.

News, Tech

banking, identity theft

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Article last modified on April 17, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Identity Theft: Are Banks Finally Protecting Your Information? - AMP.