JPMorgan Chase (NYSE: JPM) has no plans of informing its customers about the personal information that has been exposed under its security breach scandal. These customers comprise almost two-thirds of the households in the United States. The reason behind this secrecy has not clearly been revealed by the firm.
The biggest bank in the country, JPM was involved in a customer security breach that impacted almost seventy six million households in America as well as seven million small companies. It exposed vital personal information such as names, phone numbers, addresses and certain data only meant for use by the bank. A notice has been put up by the bank on its official website along with a mobile application, which notifies customers about a vital cyber security update.
According to the Wall Street Journal (NASDAQ: NWSA), a minimum of two attorneys general from the states of Illinois and Connecticut have been interacting with the company over the security breach. Other states may also soon look to connect with the company. The FBI has also been investigating the matter.
Security breach only part of crisis
The disclosure by the company regarding the hacking of personal data of 76 million customers seems to be only a part of a bigger crisis being faced by the financial services industry in the United States in the last three years.
Highly sophisticated and well-financed cyber attackers have consistently been attacking financial institutions such as banks, brokerage firms, fund management agents and stock exchanges since the year 2011. The recorded cybercrimes affecting the monetary infrastructure of the United States are very well-planned and backed by sufficient funds. The objective behind these attacks is not just greed. It is also ideological feelings.
In most of the cases, the breaches are identified and slowly dealt with in a quiet way. There is loss suffered by the financial institutions and agents, but the attackers remain consistent in their approach. The cyber forensics groups such as Stroz Friedberg, FTI Consulting and Mandiant are working constantly for Wall Street clients.
Reason behind increased cyber attacks
If one looks at the larger picture, cybercrimes might be on the rise because majority of the companies – tech, media, retail, telecom, banking – are taking steps to enter into the world of e-commerce and selling through mobile apps. In reality, the Internet was not designed to execute safe transactions or protect anybody’s privacy.