Suppliers who fail cybersecurity audits risk losing APAC banks as clients
Banks across the Asia Pacific region will stop doing business with suppliers that fail cybersecurity audits, according to a recent poll by FICO. The survey was conducted at the annual FICO Asia Pacific Fraud Forum held in Cebu, the Philippines and covered a total of 37 executives from financial institutions across the region.
According to the survey, three in four senior fraud managers surveyed said that they would be concerned enough to stop working with a partner, while another 16 percent said they weren’t sure if they would continue working with them. Only 8% of fraud managers said they would definitely continue doing business. While the auditing of business partners and their security capabilities is a relatively new practice, four in ten respondents confirmed they were already actively engaged in the process.
Figure 1: Working with partners that failed cybersecurity audits
Respondents to the survey were anxious to prevent cybercrime at their banking institutions, with 65% saying that it will be their key focus in 2017. The biggest obstacle identified by the fraud executives in fighting cybercrime was that siloed operations prevented the flow of information and worked against a coordinated response. Nearly half of respondents identified cybercrime as having the largest potential financial impact on their organisations, and said they had already increased their cybersecurity budget at least 10 to 25% over the last 12 months.
FICO’s poll revealed that bankers nominated large retailers as the greatest data breach risk (84%) in 2017, with telecommunications companies ranking second (70%). These numbers were up significantly on last year’s poll, showing some consensus on which industries remain the largest targets for cybercriminals.
Figure: Greatest data breach risk in 2017
Source: FICO 2017
“E-commerce has created low hanging fruit in the form of vast stores of unprotected sensitive personal data that can be used to steal identities,” explained Dan McConaghy, president for FICO Asia Pacific. “In Asia Pacific the problem is compounded by the huge growth in sales, poorly protected companies and a lack of disclosure.”