Mary Callahan Erdoes, head of JPMorgan’s asset and wealth management division, addressed the World Economic Forum in Davos, highlighting the formidable challenge of combating cyber criminals. Describing fraudsters as getting smarter and more devious, she emphasized the increasing difficulty of staying ahead in the cybersecurity landscape. A PYMNTS Intelligence study reported a concerning trend, indicating that nearly 43% of America’s financial institutions experienced a surge in fraud between 2022 and 2023. This resulted in a significant 65% increase in fraud losses, soaring from $2.3 million in 2022 to $3.8 million in 2023.
The financial sector has already witnessed cybersecurity incidents, exemplified by loanDepot’s breach this year, where an unauthorized third party gained access to company systems and encryption data. Additionally, VF Corporation, owner of popular brands like Vans and The North Face, faced challenges fulfilling orders due to a cyberattack. As companies navigate the complex cybersecurity landscape, experts emphasize the importance of good cyber hygiene. Rosa Ramos-Kwok, managing director at J.P. Morgan, underscores the need for businesses to prioritize updating legacy systems, addressing vulnerabilities, and adopting modern technologies like artificial intelligence to build a robust defense against evolving cyber threats.
Looking ahead, the new year provides an opportunity for companies to enhance their cybersecurity measures. Erika Dietrich, vice president at ACI Worldwide, advocates for upscaling technology stacks and leveraging artificial intelligence beyond fraud prevention and payments. She suggests applying innovation across business organizations in various ways to establish a multilayered defense. As the financial industry grapples with the escalating sophistication of cyber criminals, the imperative to proactively strengthen cybersecurity measures and stay ahead of evolving threats becomes increasingly apparent.
Reference:
