APAC bankers keenly aware that cyber security breaches can indirectly impact them in 2016

· Four in 10 (38%) of respondents ranked large retailers as being at the greatest risk for a data breach in 2016, with another 35% of respondents choosing telecommunications companies

· Small businesses (25%) and healthcare (22%) were voted as the industries least likely to be at risk of a data breach in 2016

· All respondents said data breaches in other industries will impact financial institutions

· Nearly three-quarters (72%) of respondents see a significant rise in the volume of threats from mobile commerce and mobile-first consumers in the Asia Pacific region (APAC), with another 22% expecting a modest increase

Banks in the region are keenly aware of the threat posed by the increasingly connected business landscape, and that financial service industry card portfolios are more vulnerable when customer data is collected by so many entities. In a survey of 36 fraud executives from 18 leading APAC banks at the 2015 FICO Fraud Forum, all respondents indicated that data breaches in other industries will harm financial institutions in 2016.

Thirty-eight percent of respondents ranked large retailers as being at the greatest risk for a data breach in 2016, with another 35% choosing telecommunications companies as most vulnerable. In contrast small businesses (25%) and healthcare (22%) were thought to be the industries least likely to be at risk of a data breach in 2016. Hospitality and travel, along with insurance, were ranked as medium risks for data breaches in the year ahead.

Raed Taji, Head of Global Fraud Consulting for FICO in Asia Pacific, said, “Rapid Internet and mobile penetration have seen many industries grow their online capabilities to include payments, online applications and account management services, yet many organisations only have basic security in place. These businesses are soft targets compared to the banks because they lack the resources or historical security focus needed to protect critical systems and customer data.”

The rapid growth of mobile-first consumers in APAC is also seen as a key factor as the volume of mobile threats increases. Nearly three-quarters (72%) of respondents see a significant rise in the volume of threats from mobile commerce and mobile-first consumers in APAC, while another 22% expecting a modest increase, making it a grand total of 94%. In the last year alone shopping on mobile phones increased by an average of 22% across 13 APAC markets, according to a 2015 study from Visa. Indonesia, mainland China and Taiwan reported the highest rates of growth for 2015 at 36%, 34%, and 28% respectively.

APAC fraud executives were also asked which factors might inhibit their own organisation's ability to stop a data breach. A quarter (24%) nominated low security awareness amongst employees as the No. 1 factor, with another 21% saying a lack of budget was to blame. Four in 10 ranked "too many siloed operations" as their No. 2 issue.

Taji said, “These results show that better processes, education and management are just as important as having the right technology to keep up with the ever evolving cybersecurity and fraud landscape. To avoid becoming a hacking statistic, companies should focus on good security habits, like educating their staff, using strong security solutions and examining how they are collecting, using and storing valuable data.”

Dan McConaghy, President for FICO in Asia Pacific, said, “Cybercrime is no longer a problem for the IT or fraud department alone. It is a boardroom issue and its spread to industries outside banking means a wholesale review to avoid an increased risk of financial damage or loss of reputation. Stopping breaches and fraudsters will require analytics-based solutions, especially as mobile ecommerce grows across Asia Pacific and changes who the criminals target.”