American multinational investment bank JPMorgan Chase admits spending over $600 million for cybersecurity each year.
In an interview with Medium, CEO Jamie Dimon said that for digital banks, cybersecurity is a priority. “We’ve been focused on it [Cybersecurity] for years. Our country is vulnerable. This is a critical issue, not just for financial companies but also for utilities, technology companies, electrical grids, and others,” said Dimon.
In fact, the company employs about 3,000 people just to work on the bank’s security measures, block threats and avoid technical issues.
Because the financial systems are interconnected, the need to be updated and vigilant is important for JPMorgan Chase to avoid security threats.
Besides internal security measures, the Federal government is also doing its part to mobilize the solution and to combat the threat.
Protecting customer data
Banks are vulnerable from attacks as criminals are after customer’s data. Privacy and information leak can result in costly complaints and can even hurt the bank’s image.
Given this scenario, JPMorgan Chase admits to constantly work to protect their customers. They are developing new layers of security to not allow trolls to take control of their database and to block these trolls.
Other banks and financial firms like HSBC Holdings also invest $750 M of its funding to protect itself from security threats.
According to an article by Bloomberg, some of America’s largest banks triple their budget for cyber-defence in the last three to four years. With the data leak and data breach possibilities, these banks are bound to lose more than millions to compensate customers that will be affected by the attack.
According to Julie Bernard of Deloitte Cyber-Risk Division, “Money alone is not the answer. How a security program is planned, executed and governed is as important, if not more.”