A recent survey of professionals in the financial industry revealed that 44 percent of customer accounts at financial institutions have been compromised by data breaches, leading many institutions to alter their risk strategies to combat the rising number of cyberattacks.
According to the survey, conducted by ACI Worldwide at BAI Payments Connect, banks have increasingly turned toward EMV to address emerging threats. Forty-two percent of financial professionals said they were more aggressively considering EMV plans.
More than 15 percent of professionals said recent data breaches have put pressure on their fraud operations, and 12 percent said their brand had suffered as a result of the attacks. While a substantial number of firms were affected, approximately one in four said they felt no direct impact from the recent 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,” Mike Braatz, the senior vice president and product line manager of payments risk management at ACI, said. “Without proper proactive and reactive fraud protocols, banks and issuers risk losing customers and trust in their brands, even when the breach occurred through no fault of their own.”
While recent data breaches have had a substantial and negative impact on some institutions, more than 40 percent of survey respondents said their customers appreciate the response to protect their data and prevent future data breaches.
“Customers want an open dialogue with their financial institutions when it comes to protecting their payments and personal data,” Braatz said. “When executed properly, a payments risk management strategy, which keeps customers informed–early and often–in the event of a fraud or data breach will keep financial institutions on the right side of customer satisfaction and ensure trust in their brand.”