A new study conducted by Lookout, Inc. has revealed alarming statistics regarding the rise of data breaches in the financial services industry. The study found that 70% of IT leaders surveyed reported a significant increase in data breaches compared to previous years. This highlights the urgent need for financial institutions to adapt swiftly and effectively protect their valuable data in the ever-evolving working landscape.
The report underlines several key themes that demand immediate attention in order to address the growing threat to data security. Firstly, nearly half of organizations (47%) struggle with the heightened difficulty of detecting and mitigating threats. Additionally, approximately one-fifth (18%) face a significant lack of control over their applications and data. These findings indicate that organizations are finding it increasingly difficult to protect their data effectively as the attack surface continues to evolve.
Organizations are also struggling to navigate the complex landscape of multiple security tools and vendors. The report reveals that 55% of organizations face challenges in achieving effective data protection due to the intricate nature of the security tool landscape. This highlights the need for streamlined and comprehensive security solutions to ensure robust data protection.
Another significant obstacle identified in the study is the scarcity of skilled security professionals. A lack of trained professionals in the field of data protection affects 41% of organizations, emphasizing the urgent need for investment in talent development, training programs, and strategic partnerships. Building a competent workforce capable of effectively safeguarding valuable data assets is crucial in the current threat landscape.
Access controls also pose a challenge for many organizations. More than half (52%) of the organizations struggle with the level of detail allotted by their access controls and would benefit from more in-depth controls. Strengthening access controls is essential in ensuring that only authorized personnel have access to sensitive data.
The study also uncovered that 82% of organizations have a hybrid infrastructure, combining cloud and on-premises data storage. This hybrid infrastructure, combined with a complex IT stack, hinders security for more than half of the organizations. The use of various security products that do not work well together further complicates the data protection landscape.
Aaron Cockerill, Chief Strategy Officer at Lookout, explains that the widespread adoption of Shadow IT and Bring Your Own Device (BYOD) practices has been driven by the scattered nature of data across various cloud applications and the routine use of unmanaged networks and devices by employees. To effectively address this challenge, financial institutions need to confront the overconfidence bias that has traditionally led to a strict focus on data control. Adapting strategies to safeguard valuable data while embracing the productivity gains offered by the cloud-driven environment is essential.
The report collected data from 365 IT and security leaders across the EMEA, APAC, and North America regions between August 2022 and January 2023. It highlights the significant challenges posed by hybrid infrastructures, disparate security tools, and the spread of data across multiple cloud applications.
In conclusion, the study by Lookout, Inc. underscores the alarming rise of data breaches in the financial services industry. The findings indicate that organizations are facing difficulties in detecting and mitigating threats, navigating complex security tool landscapes, addressing skill shortages in data protection, strengthening access controls, and securing hybrid infrastructures. It is imperative for financial institutions to adapt swiftly and adjust their approaches to safeguard valuable data without compromising productivity gains.