The results of a Gallup poll published late last year found that the theft of credit card information tops the list of crimes that Americans most worry about, with 69% saying that they “frequently or occasionally worry” about “having the credit card information they have used at stores stolen by computer hackers.” The anxiety is well-founded. Data breaches are on the rise at major retail, financial and health organizations, such as Target, Home Depot, JP Morgan and Anthem, among others. These breaches compromised 100s of millions of financial and personal information records over the past few years and studies have shown that almost 70% of breaches were perpetrated by “malicious” company insiders and outsiders.
Source: Gemalto’s Breach Level Index 2014 Report
Financial (and other) institutions have taken a variety of steps to address this growth in cybercrime:
1.Growth in technology developed to hamper the ability to “steal” information, such as card chips and chip readers, designed to cut down on theft at the point of sale or fingerprint/voice identification to unlock information rather than a password
2.Use of sophisticated data mining/big data to identify patterns that indicate potential credit card fraud on a close to real time basis
3.Heightened client service to mitigate end client fallout and attrition, utilizing the analytics from big data to potentially reach out to customers before they become aware of potential fraud
The third item has become increasingly important in the high-net-worth/premium services space. According to research, the fear of theft and fraud grows the more assets you have. Contacting clients to show the company is on top of things can go a long way in client retention and satisfaction.