Lost and stolen devices leak data from financial services companies

Data leaks among Financial Services companies almost doubled in the last year. The worst part it, it’s turning into a trend.

Data leaks among Financial Services companies almost doubled in the last year. The worst part it, it’s turning into a trend because 2016 doesn’t seem to be getting any better. 

This is the highlight of a new report by Bitglass, which analyses all data breaches in the Financial Services sector since 2006.  The total data protection company says that five of the nation’s top 20 banks admitted to have been breached in the first half of this year. 

“Financial institutions are prime targets for hackers and are rightfully concerned about the threat of cyber-attacks, device theft, and malicious insiders,” said Nat Kausik, CEO of Bitglass. “To stay one step ahead as data moves beyond the firewall, firms in this sector must encrypt cloud data at rest, control access by contextual risk, and protect data on unmanaged devices.” 

What’s particularly interesting in the report is the most common cause of data leaks – either lost or stolen devices. Such devices account for a quarter (25 per cent) of breaches, and organisations are struggling, trying to protect both managed and unmanaged devices.  

Hacking seems to be less of a problem, with one in five (20 per cent) of leaks being caused by it.  Besides lost, stolen devices and hacking, unintended disclosures (14 per cent) and malicious insiders (13 per cent) are also partially to blame.  The largest US bank, JP Morgan Chase, suffered recurring breaches since 2007. The largest breach, which happened in 2014, affected some 76 million households in the US.