LAYOFFS, salary cuts and cost cutting in these times of financial crisis pose a grave danger to IT companies.
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Data Theft: Due to recession, the chances of fraudulent activities have increased. Representational pic |
LAYOFFS, salary cuts and cost cutting in these times of financial crisis pose a grave danger to IT companies.
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Recession and the economic slowdown can make companies susceptible to cyber attacks as companies have been compromising network security in the name of cutting costs that can eventually result in disaster.
"Companies cannot afford to neglect cyber securities by cutting cost as it can prove costly in the long run. These are times when companies have to be more careful about security issues, says Debashish Naik, Director of Asian School of Cyber Law.
For example, he adds, during recession and economic meltdown, a number people are laid off or their salaries pruned. This can create resentment against the company they are working for and can indulge in things that are detrimental to the company's interest.
"Cyber crime is a big problem worldwide. UK has been losing u00a31bn every year in the last five years due to cyber crime," NASSCOM chief Ganesh Natarajan said.
When asked if IT companies had proper cyber security, he said,u00a0 "Most IT companies are secured, but their clients may not have similar security. All companies need foolproof security measures."
Deepak Shikarpur, chairman Board of Studies Computer Management at Pune University, added, "Security is often taken for granted. The need to install proper cyber security is ignored.
Very few companies spend on firewall or proper antivirus softwares. They don't even hire services of ethical hackers to test loopholes in their security system.
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This is more evident in times of recession where questions are raised on every purchase made."
He added that companies should have security compliance auditor who should directly report to the CEO of company on the adequate security existence.
McAfee Inc, in its recent study, found that economic downturn was diverting political attention worldwide and cyber security was not a priority around the globe.
The study also noticed that no real headway was made against the perpetrators of online crime.
The study warned that the recession was proving to be a hotbed for fraudulent activity as cyber criminals were capitalising on a climate of consumer fear and anxiety.
It also cautioned that unless significant resources were committed to international efforts to fight malicious cyber activity, there was a risk that cyber crime would impact consumer confidence, further hindering the speed of global financial recovery.
