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/   Spotlight

*Disclosure: Banking.com is powered by Digital Insight Security has long been, and continues to be, a hot topic in the financial services industry. From new tech developments to hackers, security is top of mind...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

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Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Small Business: Perception vs. Reality

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/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...

As governments prep for cyber-attacks on banks, what’s the industry itself doing?

The banking industry is at war. And as over-dramatic as that sounds, it’s not hype, it’s reality.

The U.S. National Security Agency (NSA) is closely working with its counterparts across the pond, the U.K’s Government Communications Headquarters (GCHQ) and the security service known as MI5 in a series of war games that will enable all parties to collaborate on building better defenses against cyber threats. The efforts bring together not only the top-tier government agencies but also a range of law enforcement bodies, in the process sharing information far more efficiently than is now possible.

The immediate beneficiary of these new initiatives: banks.

Large-scale attacks on corporate information infrastructures have been much in the news lately, thanks in part to the high-profile breach of servers at Sony, allegedly by North Korean forces in response to a movie lampooning the shadowy nation’s Supreme Leader. In that case, a film with tepid reviews became a beacon of free speech and many embarrassing details about Hollywood stars got leaked, but that was about it. Think what might happen if a financial services conglomerate was similarly struck.

Of course, we don’t have to think—numerous large institutions have been attacked, and many individuals have paid the price. But now that we’re so afraid of big banks going under that the phrase ‘too big to fail’ is firmly embedded in the lexicon, should we worry that many of our industry’s biggest companies are too big to fail from hacking?

That’s essentially the thinking behind the war games scenario. British Prime Minister David Cameron recently cited cyber-attacks as the “biggest modern threats that we face,” and he’s not exaggerating. However, as the research supporting the war games and other maneuvers strongly indicate, the problem isn’t just the attacks themselves, which will continue, and with increasing sophistication. The problem is the financial services industry’s lack of preparedness for large-scale assaults on the corporate networks.

A survey commissioned by the U.K. government reports that only 61% of board members know enough about their company’s critical data assets (which deserve the greatest protections) and even fewer understand the potential impact of those assets being compromised. Almost two-thirds have yet to conduct appropriate risk management analyses, and a quarter don’t even receive the regular reports they need on potential information threats.

These numbers are troubling on many levels. In pure business terms, all these institutions spend millions on IT security technologies, personnel and processes. The fact that cyber-defenses are apparently not top for mind in the boardroom, despite the massive financial outlays, reveals a surprising lack of priorities. More to the point, these hacks are typically not the work of a lone wolf—they are the product of technically skilled teams working in tandem around the globe. Any defense must be similarly sophisticated and coordinated, beginning with the upper echelon of the corporate hierarchy. The fact that governments see the urgency and some corporations apparently don’t is a huge fault line.

So if these war games play out for real—in other words, if they stop being games—which institutions are going to be the losers? It’s early in 2015: A year from now, what are the brand names that will have been tarnished by a catastrophic hack that subsequently affected millions of their customers?

It’s war, and it’s coming. Let’s hope the right defenses are in place.

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James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp