Pub. 7 2016 Issue 4

Winter 2016 29 West Virginia Banker •Creating, implementing and regularly auditing security policies and procedures •Developing a robust risk management program to both prevent and manage risk •Ensuring effective security training and resources for employees •Cultivating a culture in which all employees – from front-line staff to corporate boards – function with a security-first mindset On another security-related topic, financial institutions also have done an excellent job of educating consumers on EMV or “chip cards.” EMV imple- mentation, which began in 2012 and continues today, aims to create more secure credit card transactions through an on-card computer chip that creates an encrypted code for every transac- tion. It is designed to guard against skimming and cloning – two of the main threats to conventional, magnetic stripe cards. Studies of EMV usage in Europe sug- gest that the technology works. FICO, drawing from Mercator Advisory Group research, expects the technology to reduce fraud losses in the United States possibly to the tune of $700 million an- nually, as implementation increases. And, despite the magnetic stripe being the standard for more than 40 years, consumers overwhelmingly trust EMV. A full 82 percent of survey respondents said they strongly or somewhat agree that chip cards are more secure than mag-stripe cards for in-store transac- tions. Interestingly, trust in EMV tech- nology appears to rise among respond- ents as they get older, with 88 percent of respondents age 65 and older saying they somewhat or strongly agree that EMV technology offers the more secure payment method. This is good news for financial institu- tions, which have spent significant time and resources educating consumers about this new technology. In our 2016 Banking Priorities Study, more than 60 percent of banking executives polled in- dicated they intend to increase spend- ing on EMV implementation. http:// www.csiweb.com/resources/white-pa- pers/executive-report-2016-banking-pri- orities-study So, while consumer trust in EMV technology—and overall security—is healthy, banks must continue to im- plement the latest security measures and technologies designed to keep consumer data safe. To read more about consumer attitudes toward cybersecurity and banking as a whole, download our Executive Report: 2016 Consumer Survey Report at http://www. csiweb.com/resources/white-papers/ executive-report-2016-consumer-sur- vey-report?utm_source=Article&utm_ medium=Link&utm_campaign=- FY17_06_CSI_ConsumerPoll Reach your target audience a ordably. advertise get results KRIS MONTIONE Advertising Sales 727.475.9827 or 855.747.4003 kris@thenewslinkgroup.com Steve Sanders, CSI’s vice president of Internal Audit, oversees the evaluation and mitigation of risks associated with IT, financial and operational systems. He is a CISA, CRISC, CRMA, and CTGA, and speaks regularly on information security, cybersecurity and IT audit topics. He can be reached at steve.sanders@csiweb.com.