16 Apr 2014 09:36am

FS firms to increase cyber budget

Financial services firms are planning to increase spending on cyber security this year

Almost two-fifths (38%) plan to boost spending to combat cyber crime over the next 12 months, according to a survey from CBI / PwC survey.

The biggest increase in spend will be seen in sectors that reported low growth six months ago, including investment management which plans to increase spending by 76%, says PwC.

Richard Horne, cyber security partner at PwC, said, "Cyber crime is a major threat to the UK's financial services sector, as fraudsters increasingly turn to technology as their main crime tool. These figures show that an increasing number of UK financial services companies are taking cyber security seriously.

"Non-banking companies are sharply increasing their spend and banks, which have invested heavily for years in cyber defences, are continuing their level of spend. This demonstrates that even companies with mature cyber security capability need to continue to invest, as the threat is so dynamic."

Last year, banks and stock exchanges across the City tested their cyber security with a series of coordinated “war games” in an exercise called "Walking Shark 2", which highlighted the challenges organisations face.

"The recent Waking Shark 2 exercise in the City showed that the financial services industry and its regulators have made progress in beginning to pull together a co-ordinated response to the cyber threat," said Horne. "It also makes clear that all companies need a clear understanding of the cyber threats and the measures they need to take to be confident in their ability to manage the risk."

Raymond Doherty


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