Financial institutions in the U.S. and Europe experienced an average of 3.4 significant cyber breaches in the last 12 months, according to a new report by passwordless company Hypr. (Photo by Leon Neal/Getty Images)
Despite the ongoing move to multi-factor authentication (MFA), the financial sector still faces a significant problem when it comes to breaches related to identification compromise, according to one recent research report.
Released July 13, the authentication in financial services study discovered that U.S. and European financial institutions experienced an average of 3.4 significant breaches within the past year, costing these banks, credit unions and investment firms on average $2.19 million annually in losses and remediation (which does not even account for so-called “intangible and hidden costs”).
However, more troubling is that the report found that 8 in 10 of these breaches were related to a “weakness in authentication.” Hypr commissioned Vanson Bourne for the research included in “The State of Authentication in the Finance Industry 2022.”
The research alleges that at the heart of this problem, financial firms have become too “complacent” about authentication practices in the face of an exponential rise (in some cases) of cyberattacks and a rising level of sophistication from cybercriminals.
“Findings uncover the burden that current authentication practices are leaving on financial organizations globally, specifically the high-risk cracks in security, strain on budgets and overall operational disruption,” according to a press release announcing the report.
“More importantly,” it continued, “the results identify the discrepancies around ‘perceived’ and