According to experts, internal hacking is emerging as yet another new cyber danger companies are now facing. Companies need to start allocating resources to address internal security, which involves “addressing security issues with employees, implementing stronger policies to steer away potential data theft and keeping tabs on employees’ Internet activities.”
According to Brian Edelman, chief executive of Financial Computer Services, “all too often when people think of cybersecurity, they are thinking of a hacker or a virus. It’s more than that.” Even as regulators are raising red flags, “firms are not planning on spending money on cyber security this year.” According to a recent survey, only 30% of advisers plan on investing in cybersecurity in 2015. A recent SEC cyber report stated that, “11% of broker-dealers and 4% of advisers reported internal hacking, but that 58% of broker-dealers and 21% of advisers have cybersecurity insurance in place.”