Bank Cyberattacks: Executives Are Unaware

According to a KPMG study, a company specializing in auditing and advisory services, executives in banks are unaware of IT security breaches in their institutions. Moreover, the study reveals a disconnect in cyber security awareness between top and middle management. Over 70% of middle managers do not know whether their organization has suffered a cyberattack.

Executives unaware of bank cyberattacks

KPMG conducted a survey among banking executives, revealing significant discrepancies in awareness of IT infrastructure attacks within organizations. 12% of chief executives (CEO) do not know whether their bank was targeted in the past two years. This percentage increases when asking their deputies. Nearly half (47%) of vice presidents and managing directors are unaware whether their institution has been threatened by a cyberattack. At the lower management level, the percentage reaches 72%. Such low awareness of IT security within organizations might be surprising, especially since a 2015 study by ESET conducted in 10 countries across the EMEA region found that 79% of companies (including banks and public institutions) in the EMEA region experienced a security incident in the past year.

Banks in hackers' crosshairs

"Banks are among the most vulnerable organizations to hacker attacks due to the large volume of money flowing through them. Therefore, a priority should be developing and implementing an incident response strategy. Key to this process is managerial knowledge regarding IT infrastructure vulnerabilities, susceptibility to attacks, and mitigation capabilities"– comments Kamil Sadkowski from ESET on the study results.

Financial losses or reputation?

The consequences of attacks on financial institutions can be severe. More than one-quarter of chief executives are most concerned about financial losses stemming from an attack. Reputation damage and potential disputes are less concerning for them (21%). In contrast, middle and lower management (53% and 60%) are most fearful of reputational damage to the institution.

Summary

The KPMG study shows that awareness of cyber threats decreases as one moves down the management hierarchy in banks. While 12% of CEOs are unaware whether their institution was targeted in the last two years, the percentage rises to 47% among vice presidents and reaches 72% at lower management levels. For comparison, the 2015 ESET study found that 79% of companies in the EMEA region experienced a security incident within a year.

Kamil Sadkowski from ESET emphasizes that banks are particularly vulnerable due to the money flowing through them. Interestingly, chief executives are most concerned about financial losses, whereas middle and lower management emphasize reputational damage as their primary concern.