The need for sophisticated cybersecurity is necessary for companies, but is absolutely paramount for financial institutions responsible for safeguarding billions of dollars. However, a successful cyberattack that breached JPMorgan Chase over the summer revealed just how susceptible they are to attack from foreign criminals.
After JPMorgan Chase was attacked, phishing and vishing (voice phishing) attacks began to hit some Chase bank customers. After a company has been successfully breached, many of the records end up on the black market, where other criminals can purchase customer personal information for their own activities.
JPMorgan Chase reportedly spends $250 million per year on network and system security, which we all saw was rather ineffective. CEO Jamie Dimon noted his company could end up increasing the amount, upwards of $500 million per year, to help try to defend against future attacks that are becoming almost routine.
Unfortunately, it seems data breaches will happen - and I think companies and banks should be held responsible - but that doesn't mean they won't still occur in the future. The US federal government, which simply buried its head in the sand for years, has become more aware of cyberattacks, with changes being made.
(Image courtesy of Huffington Post )