Data Breaches Reach Nearly Half of All Financial Accounts

The article below was reprinted from here. Note the need for tools that detect fraud as early as possible. This starts with preventing spoofing and phishing.

 

Report: Data Breaches Reach Nearly Half of All Financial Accounts

BankRob
What’s Next In Payments®
3:00 AM EDT March 27th, 2014

Financial institutions have been substantially impacted by the recent data breaches, according to recent survey data released by ACI Worldwide.

The company’s survey of financial industry professionals conducted earlier this month at BAI Payments Connect found that 44 percent of customer accounts had been compromised.

More than 15 percent of respondents indicated recent breaches put increased pressure on fraud operations, while and another 12 percent indicated they suffered a negative impact on their brand. However, 22 percent said they felt no direct impact from breaches.

“Managing fraud in the wake of a data breach involves having the right tools to detect fraud as early as possible and using customer communication programs that proactively address account holders’ concerns,” senior vice president and product line manager for payments risk management at ACI Worldwide, Mike Braatz said in a statement.

This could bring challenges on the developing EMV standard.