The Global baking industry has the highest annual costs associated with cybercrime followed by utilities and software companies. Any type of leakage in the confidential data on consumer base, financials and strategies can affect the brand image and especially in the BFSI industry where there is an existence fo both internal and external threats. In recent years the advent of the internet has facilitated in moving most of the banking process online aiming to provide efficient and convenient services to its customers. This has also led to an increase in cybersecurity threats and frauds leading to BFSI enterprises opting for precautionary measures to keep the customers’ data safe. A cybersecurity threat is a malicious act that seeks to steal or even damaged data. Also, as banking customers are moving away from using cash and checks towards relying more on electronic banking, Banking, financial services, and insurance organizations continue to develop more web portals and mobile apps. Although these apps and online portals are aimed at increasing convenience and enhancing the final customer experience, still they pose unique risks in terms of cybersecurity.
BFSI security market trend is witnessing substantial growth in the couple of years as various organization and agencies are established around the globe that tracks the consumer fraud and identify theft complaints, for instance in the United States consumer sentinel network is maintained by the Federal Trade Commission which tracks consumer fraud and identity theft complaints that have been filed with federal, state and local law enforcement agencies, in fact in its recent report fraud complaints in the country have increased from 1,165,625 in 2015 to 1,427,563 in 2018. In addition, in 2019 there were around 1,473 breaches 17% up from 1,257 in 2018 but below the record number of breaches of 1,632 in 2017.
The growing interest in cyber insurance and cyber risk as a result of high profile data breaches and awareness also boosts the market for BSFI security in the coming years. In July 2019, one of the worst data breaches of Capital One Financial Corp exposed nearly 100 million records in the United States and approximately 6 million in Canada. The outside individual who took the data was captured by the FBI and the government also states further strict policies to protect the customers from any such acts in the coming future.
Is physical security is an area of interest for the baking sector?
Physical security such as access control and video surveillance is the area of interest for banking and other companies around the world. Video surveillance for monitoring the activities inside as well as outside the industry has now become necessary for banking and financial institution which are aiming to address solutions from theft and terrorism. Such video surveillance solutions are used to protect employees and assets of the company. Other benefits such as lowering robberies, preventing fraud, continuous surveillance and remote accessibility are further increasing the demand for video surveillance and other physical security of the BSFI industry. In addition, increasing investment in research and development by big market players on advance video surveillance capabilities which artificial intelligence that makes it possible for banks to automatically analyzing the threat detection and reduces the need for manual monitoring and adds facial recognition technology to the mix after which institutions have an edge against criminals.
Further, governments and local administration around the world have institutionalized various regulatory measures to limit the fraud and theft cases which in turn, accelerate the growth of global BFSI security markets. Nevertheless, there is a high growth potential for emerging and developing markets and there are regions that still untapped with regards to the realization of its technological potential. The Information and communications technology revolution in various parts of the world fueld by the progress in the semiconductor technology has also accelerated pace of BFSI security market growth over the forecast period.
Latest Developments in the BFSI security Sector
In December 2019, CyberGRX, provider of the world’s first and largest global cyber risk exchange, raised $40 million in Series D funding led by the ICONIQ Capital and also backed by Datadog, Gitlab, Procore, and Snowflake. Funding will help the company to meet increasing demand, including expanding globally and driving innovative product development in the direction that eliminates the current time-consuming procedures. Also, the company will continue to disrupt industry inertia around the third party cyber risk management be advancing an innovative and proven approach to reduce third-party cyber risk.
In December 2019, Secure Code Warriors secured a Series B funding round of US$47.6 million led by Goldman Sachs. Additional investors include ForgePoint Capital and Cisco Investments and US-based Paladin Capital Group. Such funding is used to support global expansion initiative, ongoing research and product development coupled with the establishment of new operations on the West Coast of the United States in Portland, Oregon and across APAC starting with Singapore.
November 2019, Madrid based cybersecurity firm Buguroo secured US$11 million in Series A funding to bring its Deep Learning-based online fraud detection and prevention technology, device assessment, combining behavioral biometrics and malware detection to more financial services customers. Three new investors will join buguroo board Alex Doll and Paul Ayers from Ten Eleven Ventures and Beatriz Gonzalez from Seaya Ventures.
In November 2017, Lifelock a Symantec company and one of the leading providers of proactive identify theft protection company launched an identify protection product LifeLock® Senior† to help adult children protect senior/old age parents from identity theft. LifeLock and Norton brands together are redefining the security industry and offering customers comprehensive protection that helps connect people, information and things. One of the prime features of LifeLock Senior identity protection is the ability for children, with permission from their senior/old age parents, to view their parents’ banking activity and thereby actively monitoring the potential identity threats.
In 2016, Cisco acquired ClodLock Inc, a cloud security private company based in Waltham, Massachusetts which specializes in cloud access security broker technology and provides companies with visibility around user behavior and sensitive data in cloud services, including Iaas, PaaS and SaaS. The acquisition is further enhancing Cisco’s security portfolio and increases its market share by providing protection from the cloud to the network to the endpoint.
There is an increasing number of developments in the BFSI security market worldwide, it is evident that all stakeholders engaged in this market are active in all sorts so development in the security industry. The market is expected to witness exponential growth opportunities on account of the growing adoption of cloud-based security solutions and the increasing risk of data loss around the globe.