By Tracey, Brian
American Banker , Vol. 161, No. 112
Spending by financial services firms on data security systems is skyrocketing as the companies scramble to protect themselves from cyberspace intruders.
A new study, conducted by Yankee Group of Boston and Infosecurity News magazine, found that spending on computer-security products at 412 large and midsize companies rose an average of 25% from 1994 to 1995. This year, data security spending is expected to rise by 15%. The growth far outpaces increases in overall corporate technology spending, the survey found.
Among the hundred or so financial companies participating in the survey, spending was even greater.
Information security expenditures at banks, investment companies, and insurance firms rose 29% from 1994 to 1995, and is expected to grow 16% this year, said Steve Franko, a senior analyst with Yankee Group.
Driving this growth are fears of the risks posed by doing business on the Internet, as well as concerns about whether remote access, such as home banking, could lead to systems breaches, the survey found.
"I think people are starting to become much more aware of what the potential security risks are, but they still don't have all the tools they need to implement effective security solutions on an enterprisewide basis," Mr. Franko said.
Despite the fears of the Internet, the survey found that the number of security breaches springing from use of the sprawling network have been few. …