JPMorgan Chase & Co. (NYSE:JPM), Bank of America (BAC) and other U.S. lenders to spend over $1.5 billion on cybersecurity in 2016
Seen as the prime targets of cybercriminals, U.S. banks are letting loose their wallets to fight the cybersecurity scourge. JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C) and Wells Fargo & Co (NYSE:WFC) are on track to spending a combined $1.5 billion to battle cyber threats in 2016.
It is estimated that businesses worldwide lose anywhere between $400 and $500 billion annually through cyberattacks. The loss includes actual value of the items lost and the cost of restoring impacted systems.
JPMorgan to spend $500 million in repelling cybercriminals
At time has come when U.S. lenders feel they have to get more serious about fighting cyber threats. JPMorgan Chase & Co. (NYSE:JPM) is expected to spend no less than $500 million next year to secure its systems against cyber breaches. That would see the bank’s cybersecurity budget more than double from $250 million it spent on that course in 2014.
Bank of America
Bank of America has no budget constraints in its cybersecurity division, a first in yearly 20 years, according to CEO, Brian Moynihan. This year alone, the bank is on track to spending $400 million to fight cybercrime. The budget for next year will likely be higher than this year.
Citigroup and WFC
Citigroup is expected to spend more than $300 million in 2016 to repel cybercriminals. It is also being reported that WFC is budgeting $250 million to fight cyber threats in 2016.
Putting together the cybersecurity budgets of JPMorgan Chase & Co. (NYSE:JPM), Bank of America, Citigroup and Wells Fargo, the total cybersecurity budget for next year is seen in the vicinity of $1.5 billion.
Financial services market under threat
Hackers have gone loose on targeting banking and financial services sector. Oil and gas, defense and IT& telecom are other industries most targeted by cybercriminals. Because of the huge threat facing financial services industry, Homeland Security Research Corp. (HSRC) estimates that the U.S. financial services cybersecurity market could be worth $9.5 billion this year 2015 alone and possibly reach $77 billion in 2020.
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