FDA critical in the face of cyber breaches

15 February 2016
| By Daniel Paperny |
image
image
expand image

Cyber breaches and insider threats are the fastest growing security risks facing businesses today and this is driving increased investment in forensic data analytics (FDA), a study by Ernst and Young (EY) reveals.

EY's 2016 global forensic data analytics report surveyed 665 executives across 17 countries and examined the current use of FDA tools to investigate incidents or manage risks — including "insider threat risks" such as malicious internal employees stealing, manipulating or destroying data.

"In today's digital world, there are rapidly expanding opportunities for innovation and growth. Unfortunately, these new opportunities have also brought new fraud risks in the forms of cyber breaches and internal threat," the report states.

"Companies need to recognise the full spectrum of value that FDA can bring — far beyond fraud detection — and be more aggressive in its implementation."

According to the report's findings, Australian executives were among the most likely to report an increase in concern about cyber breach and insider threat risks, with 80 per cent saying their level of concern had either significantly or slightly increased. This was noted to be second only to the UK (at 83 per cent) and well above the global average of 62 per cent.

EY's fraud investigation and dispute services managing partner for Oceania, Rob Locke, said boards and senior management needed to work together to ensure that FDA is incorporated as a critical aspect of their organisation's risk management and compliance programs moving forward.

"For all organisations, the threat of cybercrime is an everyday reality, posing a dynamic and relentless challenge," he said.

"Given the current regulatory enforcement environment and market reaction to instances of alleged corporate fraud, bribery and cyber breach, having a robust and effective FDA program in place is more important than ever."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 day 11 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago