Insurers and other financial services firms need to give wireless access–wireless local area networks (Wi-Fi)–the same level of security they provide for their wired communication networks, according to research from TowerGroup consultants.
During its annual conference in Boston today, the Needham, Mass.-based firm noted that as increasing instances of data theft hit the financial services industry, "Wi-Fi, if not properly managed, will emerge as a channel of significant threat to reputation and customer trust."
"The first and perhaps most onerous threat from Wi-Fi for financial institutions is rooted in faulty corporate IT strategy," said Bob Egan, research director of the TowerGroup Emerging Technologies practice and co-author of the research.
"Institutions that choose not to support Wi-Fi officially are not immune to security threats via Wi-Fi technology. Though they may choose not to purchase and support devices like laptops with embedded Wi-Fi capability, employees may still own and use such devices," Mr. Egan continued.
The research found that employees at financial institutions are likely to be experienced Wi-Fi users, given a penetration of 65 percent in U.S. households for the technology. In addition, "less than 10 percent" of homes with Wi-Fi "have even a basic element of security activated."
Regardless of whether a financial institution has officially sanctioned wireless as part of its overall IT strategy, both a wireless intrusion detection system and an intrusion prevention system are needed, said TowerGroup.
In purchasing such systems, the researcher added, buyers must consider factors such as total cost of ownership, ease of deployment, ease of use and alert functions.
Mr. Egan also noted that while administrative tools to block unauthorized Wi-Fi capability exist, this "avoidance mentality" is difficult to enforce.
"Wi-Fi is dramatically changing the face of communication," he added. "Institutions must be prepared to change their information security policies and practices to respond to the reality that Wi-Fi devices employees are using on their premises may serve as unintended points of entry for security intrusions to their networks."
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