The Problem With Online Financial Fraud Prevention

Ross Hogan, global head of the Fraud Prevention Division for Kaspersky Lab, discusses the results of a new survey on how businesses are addressing online financial fraud.

CIO Insight: Which of the survey results most-interests you as someone whose job for Kaspersky Lab is to prevent online financial fraud?

Personally, the percentage of large businesses and enterprises "willing to bear the cost of some financial losses due to cybercrime because it will still be less than the cost of upgrading our IT systems" is staggering. If these organizations considered the "total cost of fraud," which includes not only financial losses, but operational costs, legal and regulatory impacts, reputation damage and PR headaches, customer attrition, the increased cost of acquiring new customers, and the overall emotional toll and loss of moral, they would certainly think and act differently.

Furthermore, I believe that many businesses are jaded as they are tired of spending time and money on overly expensive point solutions from either startups or generalized, oversized technology and service providers. Kaspersky Lab customers consistently carry a different perception shaped through the experience and results from working with a world leader that specializes in security and security only. I always say, You don’t buy sushi from Walmart or from a cart on the sidewalk, so why would you treat your company’s and customers’ security any differently?

CIO Insight: What are your tips for CIOs about how to prevent online financial fraud and data loss?

My top three are:

1.     Put security at the forefront of all IT decisions

2.     Secure from the inside out

3.     Never assume your enterprise is secure

Not only are my top three a great start, but they should be a part of every organization's holistic approach to security in general. As far as online financial fraud and data loss are concerned, the transaction needs to be secure on both ends. There are many different approaches you can take to achieve this. Encryption is, and will continue to be, at the top of the list.

As data breaches occur, the confidence in financial institutions is faltering. The time has come for financial institutions to project to their customers that security is their number one priority. By having mobile applications and web-based applications with built-in security features like on-access malware scanning, safe input of data and risk detection, the level of confidence can remain high.

About the Author

Jack Rosenberger is the managing editor of CIO Insight. You can follow him on Twitter via @CIOInsight. To read his previous CIO Insight article, “The Importance of Location for Digital CIOs," click here.

This article was originally published on 09-08-2014
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