Security in Banking: Top Trends for 2005 and Beyond

by Jacob Jegher, April 29, 2005

Abstract

Boston, MA, USA April 29, 2005

Celent estimates that IT security spending by North American banks will reach US$1.8 billion in 2005, a 12.2 percent increase over 2004. It is not surprising that banks are devoting these funds to IT security—protection against constantly evolving forms of bank robbery and account fraud are a must.

IT security represents a fundamental pillar in today’s banking environment as banks deal with issues such as identity theft, account fraud, trojans, hacking, phishing, and a slew of other malicious internal and external criminal activity. Banks have to be on the ball when it comes to protecting corporate networks and data, their clients, and their clients’ personal information and assets. In addition to this challenge, risk management and compliance must continuously be top-of-mind, as they resound through and affect all aspects of banking security.

In a new report, , Celent identifies, examines, and strategically analyzes the top information security trends and issues facing bank CSOs and their teams.

"Bank CSOs/CISOs and their teams have heavy weights on their shoulders," says

Jacob Jegher, senior analyst in Celent's banking group and author of the report. "Maintaining a secure network and environment is already a daunting and complex task for standard corporations. The addition of insider fraud and skyrocketing external malicious attacks against financial services providers have banks scurrying in all directions to find a solution."

The 34-page report contains 11 figures and six tables. A table of contents is available online.

of Celent Communications' Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

  Boston, MA, USA April 29, 2005

Security in Banking

Return to report Abstract

 

Executive Summary 3
Introduction 6
Market Overview 7
  IT Security Spending  7
  Perspective on Security: A Strategic Evolution 10
  Information Security Frameworks, Standards, and Best Practices 11
  Security in the Banking Industry: Competitive Advantage or Basic Requirement? 12
Threats and Vulnerabilities 14
  Account Fraud and Identity Theft: An Epidemic Affecting Banks and Their Clients 14
  Combatting Malicious Attacks 18
  Employees and Insiders are to Blame for 50 to 70 Percent of Bank Fraud 21
  A World Without Wires: Securing Wireless Devices and Networks 22
Technological and Procedural Tools 24
  Two-Factor Authentication: A Tug-of-War Between Simplicity and Security 24
  Raising Awareness: Educating Employees as Well as Commercial and Consumer Clients 29
  Identity Management 30
Conclusion 31
Objectivity and Methodology 33
 

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