Internet security is important for the firms operating in financial services industry to protect their valuable data from the hackers. It protects the customer information including authentication. If the security controls are ineffective, a financial institution becomes liable for all unauthorized transactions and violated laws regarding client confidentiality.
A survey, The State of Information Security within the Asian Financial Services Industry, was conducted by the IDC Financial Insights on the Internet security issues of firms providing financial services in Asia. It was revealed from the survey that about 56% of information security professionals from the financial services industry from Asia were unaware of the number of security threats encountered by their firms.
The report also revealed that punitive measures taken to invest in Internet security by the regulatory authorities exert pressure on bankers, insurers, and financial market firms. But there are some obstacles for the implementation of the Internet security (IS) by the financial services firms. According to the report, 28.5% of respondents had not implemented the security because of lack of investment budget. Increased sophistication threats (22%) and lack of senior management support (13%) were also found to be the main reasons for non-implementation of the security systems.
These trends are observed in Australia, China, Malaysia and Singapore along with India. Hence, there is a requirement to improve the policy of Internet security in Indian firms offering financial services.