Indian firms underequipped to handle cyber threats: KPMG

MUMBAI: The banking and financial services sector continues to be a top target for cyber attacks which continue to rise every year, a survey by consulting firm KPMG revealed. Yet the spends on cyber security continue to be low and also lag in priority in board rooms, it said

The survey revealed that 72%of the respondents had faced some sort of cyber attack over the past year, up from 43% a year ago. Besides, it also found that financial motives were a key driver for cyber crime

74% of the respondents felt that the banking and financial services sector was most vulnerable to the cyber risk threat. But cyber defence expenditure formed less than 5% of the total IT spends.

"The industry ( both banks and non-banks) is not well equipped to handle the cyber risks. In fact 76% say that they cyber risk assessment. " said Mritunjay Kapur, National head of risk consulting and strategy at KPMG." Spends should go beyond IT infrastructure. Firms should move towards securing their organisations, not just the IT departments, but the entire business." he added

A survey by KPMG of 250 respondents across the sectors shows that 94% of the respondents felt that cybercrime was one of the major threats to their businesses. However only 41% had it ( cyber crime related issues) as a part of their board room agenda.

Speaking at the release of the report, Mumbai police commissioner Ahmad Javed said that companies were often hesitant to report cyber crime fearing that their reputation would be at stake which would impact their stock prices.

The police and other law enforcing agencies are concerned that the financial loot from cyber attacks would be used for funding terrorists activities.