Bank of America's Unlimited Cybersecurity Budget Sums Up Spending Plans In A War Against Hackers
January 27, 2016
The U.S. federal government, big banks, and big businesses are spending big bucks in a war against hackers and cyber criminals.
In a live interview from Davos Switzerland on Bloomberg roughly one year ago, Bank of America Corp. CEO Brian Moynihan said the nation’s second largest lender would spend $400 million on cybersecurity in 2015… and it was the first time in 20 years of corporate budgeting he had overseen a business unit with no budget. Moynihan said the only place in the company that didn’t have a budget constraint was cybersecurity.
BoA should be applauded for their blank check approach to protecting their enterprise and customers against the rising tide of cyber crime. They are putting no cap on what they will do to thwart cyber criminals. J.P. Morgan Chase & Co. isn’t far behind, having recently lifted their cybersecurity budget from $250 million to $500 million.
Infosecurity Magazine says that financial services firms are a whopping 300 times more likely to be hit by security incidents compared to other industries. But cybersecurity budgets are rising in all industries alongside the cyber crime figures. Consider some of the latest market summary and forecast data:
In 2015, the British insurance company Lloyd’s estimated that cyber attacks cost businesses as much as $400 billion a year, which includes direct damage plus post-attack disruption to the normal course of business. Some vendor and media forecasts over the past year put the cybercrime figure as high as $500 billion and more.