Top financial services cybersecurity and data breaches
The pace of digital t...
We look at the largest ever financial services data and cybersecurity breaches, courtesy of Digital Guardian’s Data Insider blog
The pace of digital transformation across the financial services landscape continues to quicken. In a previous article, Accenture: fintech, cybersecurity and how to manage risk, we explored how that change is impacting the range and depth of data and cybersecurity threats faced by banks, insurtechs and fintechs worldwide.
According to Accenture’s 2019 Ninth Annual Cost of Cybercrime report, financial services incurred the highest cybercrime costs among all industries studied in 2018.
Here, we look at the largest ever financial services data breaches worldwide, as originally reported by Digital Guardian.
10. Citifinancial, 2005: The subsidiary of Citigroup lost a box of computer tapes that held sensitive information on 3.9 million customers.
9. Educational Credit Management Corp., 2010: Theft of the company’s ‘portable media’ impacted 3.3 million and, while it did not involve financial or banking information, it did see the loss of social security numbers.
8. CheckFree Corp., 2009: cybercriminals hijacked and redirected site traffic to a malicious site, to which 5 million customers logged in with their credentials.
7. Data Processors International, 2003: A hacker breached security systems to steal up to 8 million credit card numbers, including 2.2 million Mastercard-issued cards and 3.4 million issued by Visa.
6. Korea Credit Bureau, 2014: An employee copied databases that held customer details for 20 million people, including ID numbers, addressed and credit card details.
5. CardSystems Solutions Inc., 2005: Systems were accessed by a hacker, which resulted in 40 million credit card numbers being compromised.
4. JPMorgan Chase, 2014: A data breach by the banking giant affected 76 million households and seven million small businesses - personal information rather than financial information was leaked.
3. TRW Information Systems, 1984: Theft of a credit file password gave access to the credit histories of 90 million people, including names, addresses, social security numbers and more.
2. Heartland Payment Systems, 2008: Systems were hacked at the payment processing firm that affected 130 million customers.
1. Equifax Inc., 2017: 143 million accounts in the US were compromised by a data breach that involved personal information; the hackers also stole more than 200,000 credit card numbers.
For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.
Stripe backs Step - the digital bank for teens
The Series C round raised US$100m in capital from a number of backers, including Coatue, TikTok star Charli D’Amelio, actor Jared Leto, and Will Smith’s Dreamers VC, for the enterprise.
Step provides a free FDIC-insured bank account and Visa card to teenagers. The accounts are backed by Evolve Bank and there is no subscription charge for its usage. Users don’t pay for their accounts and there are also no overdraft fees.
The mobile banking app enables parents to set controls and limits on spending and encourage responsible finances. According to data released by the company, 88% of the platform’s users say this is their first bank account.
To date, Step has seen great success in the marketplace. The company has raised more than $175m from investors and now has 1.5m users.
Stripe, which was founded by Irish brothers Patrick and John Collison, previously led Step’s $22.5m Series A round in 2019.
Step's Series B funding round also brought in $50m, and has a distinctly celeb-tinged reputation with investors including Justin Timberlake and the pop duo The Chainsmokers.
Users get access to a free, FDIC-backed bank account, a spending card and P2P payments platform to send and receive money instantly.
CJ MacDonald, chief executive of Step, said the company is aiming to improve the financial futures of the next generation. “Step is the only banking platform that enables teens to start building a positive credit history before they turn 18 and does not charge fees of any kind.
He has previously spoken about the importance of financial literacy for young people. “Money is just one of those things where I think the more educated and equipped you are early, the better decisions you can make down the road,” he told . “And you can also prevent yourself from making costly mistakes. I mean, the average American doesn't have $400 in emergency savings and pays $350 a year in banking fees. If we can help this next generation just ultimately be smarter and more educated as it pertains to money, I think we'll all be better off.”
Kyle Doherty, managing director at General Catalyst and Step board member, explained, “Gen Z is flocking to modern financial solutions that can be easily embedded within their digital lives and Step has a unique model for how to do this right.”
The news follows on from Stripe’s recent announcement that it plans to acquire TaxJar. The fintech, which builds software for online businesses that automates the reporting and filing of sales taxes, will most likely be integrated with Stripe’s billing services.
Currently, No terms have been disclosed but the Boston start-up had raised more than $60m from investors including Insight Partners.
Stripe chief financial officer Dhivya Suryadevara said of the move, “With TaxJar, we will help millions of internet businesses running on Stripe with their sales tax and make it easier for them to sell internationally.”