The COVID-19 and remote working (WFH) have led to a significant increase in cyberattacks targeting banks and insurance companies, according to new research. BAE Systems Applied Intelligence has released the “COVID Crime Index 2021”, which examined how the remote working model is impacting the banking and insurance industry.
As the pandemic continues to have a widespread impact, the rapid shift to WFH (Work From Home) models – in some regions – is easing, but many organizations are choosing to either continue to allow their staff to work remotely, or are adopting hybrid work practices. For example, HSBC and JP Morgan will allow thousands of their employees to work from home for the foreseeable future.
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There are implications for WFH trends in terms of employee satisfaction and productivity . A recent survey found that 31% of employees believe they work better from home , but distractions, home life, and existing commitments were cited as issues affecting work efficiency.
Security has also proven to be a challenge when working remotely. According to the BAE Systems report, 74% of banks and insurance companies have experienced an increase in cyberattacks since the start of the pandemic , while criminal activity detected by financial entities has increased by 29% .
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The report is based on two surveys conducted in March 2021 among 902 organizations operating in the financial services industry, in the US and UK.
The increased threats identified by IT teams are the following:
- Increase in botnet attacks: 35%
- Increase in ransomware attacks: 35%
- Increase in phishing attacks: 35%
- Mobile malware: 32%
- Malware related to COVID-19: 30%
- Internal threats: 29%
The report also reveals that 42% of banks and insurance companies believe that the remote working model has made their organizations “less secure,” while 44% said that remote models have led to visibility issues in existing networks.
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The pandemic has pushed many companies to cut costs wherever they can, and when it comes to cybersecurity, anti-fraud and cybersecurity budgets have decreased by 26% – leading 37% of organizations to believe that their customers are now at greater risk of falling victim to cybercrime and fraud.
Also notable is the fact that financial losses are increasing. According to the report, 56% of UK and US banks have suffered such large losses, with the average cost of cybercriminal activity reaching $720,000 during the pandemic.
In another survey, BAE Systems focused on the impact of the pandemic on consumers in terms of cybersecurity. In 2020, 28% said they received at least one phishing email related to COVID-19, 22% received scams SMS and, overall, at least a fifth of consumers have been targeted during 2020-2021.
Information source: zdnet.com
