ACI Worldwide Survey Reveals 44 Percent of Customer Accounts Compromised
An industry survey conducted by ACI Worldwide shows some startling numbers and highlights the need for greater investments in better security measures.
After massive security breaches at national retailers, it appears that financial institutions and consumers at large are increasingly concerned with protecting themselves against vulnerabilities.
The survey, conducted at the BAI Payments Connect conference, revealed that 44 percent of customer accounts at financial institutions have been compromised by data breaches.
Data breaches involve the stealing of sensitive information, which includes payment, banking and personal data.
What are financial institutions doing to shore up these security flaws?
42 percent of respondents said they were ramping up EMV plans, while 50 percent have said that they are currently investing in fraud detection technology.
According to ACI Worldwide’s Senior Vice President and Product Line Manager Mike Braatz, “Managing fraud in the wake of a data breach involves having the right tools to detect fraud as early as possible and using customer communication programs that proactively address account holders’ concerns.”
No security measure is foolproof. The upcoming payment card migration to EMV in 2015 may mitigate some data security threats, but even countries that have adopted the technology face breaches.
Those surveyed said that 42 percent of customers have approved of banks’ responses to data breaches.
When the worst-case scenario happens, it is then up to financial institutions to respond with openness or risk a brand and reputational hit.
Braatz says, “Customers want an open dialogue with their financial institutions when it comes to protecting their payments and personal data. When executed properly, a payments risk management strategy, which keeps customers informed — early and often — in the event of a fraud or data breach will keep financial institutions on the right side of customer satisfaction and ensure trust in their brand.”