It has been reported that banking giant HSBC disclosed on Monday a security incident that impacted an undisclosed number of the institution’s customers.
“HSBC became aware of online accounts being accessed by unauthorized users between October 4, 2018 and October 14, 2018,” the bank wrote in a data breach notification letter submitted to Californian authorities. The bank said it suspended access to online accounts for all impacted customers and initiated procedures for changing passwords for online banking accounts. It also said it added “an extra layer of security” to HSBC accounts, but didn’t go into details.
Commenting on the susceptibility of the financial industry and the changes it needs to make to protect customers, is Frans Labuschagne, Country Manager for UK & Ireland at Entersekt:
“Today, data breaches have almost become a fact of life. Despite a seemingly increased focus on the importance of cyber security and the tightening of regulations, it still seems as though the way personal data is currently being protected – particularly in the financial industry – is not effective.
The challenge is complex, and part of it lies in the rapid rise of e-commerce and in consumers growing increasingly comfortable with sharing their personal data with multiple websites and companies every day. The more widely this sensitive data is shared, the greater the risk that it can be accessed by parties with malicious intent.
The financial industry is currently facing the challenge of protecting consumers’ data while still allowing them the freedom to keep engaging in a multitude of online activities. Traditional approaches to protecting data clearly do not suffice in the age of digital innovation, which means they need to change. This change needs to involve making identity protection an active part of a consumer’s financial life.”