Banks are increasingly deploying cloud computing solutions and digitizing paper documents. Since the recession, financial institutions have been scrambling to find ways to stay afloat, relevant and competitive. These virtual solutions are supposed to provide a company with valuable benefits. A cloud is supposed to enhance security, flexibility and compliance. But oftentimes, problems with deployment and management of these technologies keep the benefits out of reach and welcome more problems.
All of the money in a bank is at the fingertips of a cyber hacker. A criminal has to work to get profit from stealing information from a doctor's office or store. Pieces of information must be linked together and oftentimes additional digging is required in order to find private banking information in those instances. But a bank is a direct line into clients' wallets. The increase in technology correlates with an increase in security breaches.
Over 11 million records have been exposed due to data breaches since the beginning of the year, according to a report by the Identity Theft Resource Center. The information leaked from just 447 breaches, indicating the significant amount of data that can be lost just on one occasion. For the purposes of the report, a breach was defined as an event that caused a person's name plus Social Security number, driver's license number, medical record or a financial record/debit card to potentially be at risk.
A hefty price tag on cybercrime
Cybercrime is the cause of 95 percent of losses for Brazilian banks, according to Forbes. A malware intrusion could potentially cause the country's payment form Boleto Bancario to lose $3.75 billion, according to the source. A boleto is comparable to a money order in that a customer can pay the exact amount to a merchant with a financial document. While payment can be made online or offline, the particular breaches occurred through payments made on the Internet as 17 versions of malware were detected by The RSA Research Group, according to Forbes. Although this incident occurred abroad, it can exemplify the severity of cybercrime for banks and other financial institutions. In addition to the potential of losing a detrimental amount of money, the information that clients provide financial firms with is protected under federal law which attaches consequences to financial hits. That means that cybercrime has a ripple effect. A theft could mean a loss of initial money stolen, more money lost to cover legal fees for litigation and finally the expense of damage control.
These incidences and findings could point to importance of continuing to leverage print documents at financial organizations. Bank statements with credit and debit card information could be affected by malware if they are all online. What's worse is that the banks suffer the consequences as do the clients. Paper documents are secure and they offer authentication and proof of payment for important purchases. Documents for a mortgage or any type of loan can be safeguarded in the hands of the client as well as the bank.