FIs Expect Cybersecurity Spending To Increase In 2021, Study Finds

Financial firms expect that the cost to defend against cyberattacks will continue to increase in 2021, according to Bloomberg, citing a survey done by Deloitte & Touche LLP.

The survey, which will be released in December, reports that 64 percent of executives at financial companies ranked cybersecurity as their top concern in expected budget increases. Bloomberg received part of the survey in advance.

Cyberattacks are on the rise, especially amid the coronavirus pandemic as companies rush to adapt to digital practices, whether that’s contactless or remote services.

The SEC warned in October that cyberattacks on corporations had been increasing, and businesses were advised to include multi-factor authentication to prevent credential compromises.

With the rapid shift to digital, financial institutions (FIs) expect to spend 15 percent more in 2020 to protect their networks, according to a previous Deloitte & Touche survey. The survey found that some FIs plan to spend over $3,000 on cybersecurity per employee this year.

And in another recent study, J.P. Morgan Chase found that 81 percent of business owners reported experiencing payments fraud in 2019.

“We’re still in the midst of a large transformation in financial services due to digitization, moving to the cloud and remote workplaces,” said Mark Nicholson, head of financial services cyber risk at Deloitte, according to Bloomberg. “Only when the transformation is complete will the spending on it stop increasing, as it will become a more steady operational expense.”

Work-from-home culture has also led to increased concern for security issues, PYMNTS reported at the beginning of the global pandemic.

“This is a moment that a lot of hackers across the world have been preparing for,” said Brian Finch, partner at Pillsbury law firm and co-leader of the company’s coronavirus response team, according to Compliance Week, in March. “We are already seeing a spike in cyberattacks, including on remote connection services.”

The December survey found that cloud computing and storage is the second expense listed that is expected to increase next year, ranked by 54 percent of the 800 responding executives.