Cybercrime hits financial firms hardest - survey

LONDON Tue Mar 4, 2014 5:37am IST

U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul August 2, 2013. REUTERS/Kim Hong-Ji/Files

U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul August 2, 2013.

Credit: Reuters/Kim Hong-Ji/Files

Related Topics

LONDON (Reuters) - Cybercrime is the second most common type of fraud reported by financial firms, more than double the level across other industries, as criminals turn increasingly to technology as their main weapon against banks, a survey showed.

Some 39 percent of financial services companies that suffered from economic crime last year said they had been hit by cybercrime, compared to 17 percent in other industries, according to the survey by consultancy PwC.

Banks in Europe and the United States are being told by regulators to toughen their defences against cyber attacks, which have grown more frequent and severe as criminals and "hacktivists" become more sophisticated. Banks are often targeted for financial gain, but sometimes it is to disrupt business.

Hundreds of bankers took part in simulated "cyber attacks" last year in New York and London to test their resilience to such threats.

PwC said its survey even appeared to underestimate the scale of attacks, saying its experience showed a clear majority of financial firms had suffered cybercrime last year.

"Cybercrime is growing and the methods are constantly evolving. We see no abatement in attacks on banks' infrastructure," said Andrew Clark, a partner in PwC's forensics practice.

Some 45 percent of financial firms were victims of fraud last year, PwC's 2014 global economic crime survey showed. The survey, based on responses from 1,330 companies in 79 countries, showed theft was responsible for the highest share of economic crime, followed by cybercrime, money laundering, accounting fraud and bribery and corruption.

External fraudsters are behind most of the economic crime. The survey said most internal frauds were committed by junior staff or middle managers.

The profile of the typical internal fraudster is a male aged 31-50, with a university education.

(Reporting by Steve Slater; editing by Tom Pfeiffer)

FILED UNDER:

Economic Pulse

Reuters Showcase

Reaction to Budget

Reaction to Budget

India budget unlikely to impact credit rating - agencies  Full Article 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Documents Leaked

Documents Leaked

Indian Oil suspends official for leaking information - sources  Full Article 

Coal Auction

Coal Auction

India examines coal mine bids amid reports of discrepancies  Full Article 

Ola Buys Rival

Ola Buys Rival

Ola buys rival TaxiForSure for $200 million  Full Article 

Priority Sector

Priority Sector

RBI revises priority sector lending norms  Full Article 

Global Economy

Global Economy

Global stimulus swells as China eases, ECB to start soon on QE  Full Article 

Steel Industry

Steel Industry

Steelmakers hit by uncertainty over import duty hike   Full Article 

HP Buys Aruba

HP Buys Aruba

HP to buy Wi-Fi gear maker Aruba Networks for $2.7 billion  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage