JP Morgan Chase Case Study

J P Morgan is one of the well known Companies headed in US and provides financial services to most of the countries. The company involves in investment banking, treasury services, investment management, private banking, wealth management and commercial banking services. In earlier 2014, JP Morgan Chase experienced in theft of 83 million customer records from JPMorgan Chase & Co (JPM.N) in a massive cyber attack. This includes 76 million individual customers as well as 7 millions corporate customers’ personal details. The hackers used the customer information to send emails to customers purporting to be from JPMorgan Chase. Links embedded in those emails could be used to con customers out of their passwords, a practice known as "phishing." This

Based on the company details, JPMorgan spend around $250 million in the bank’s case on computer security every year to guard against increasingly sophisticated attacks. However they failed to consider a basic protection on the system.

The starting point of the attack was the stolen login identification of a JPMorgan’s employee in 2013. Company failed to give more concern about the data security even after the identified employee’s credentials theft. Most big banks use a double authentication scheme, known as two-factor authentication, which requires a second one-time password to gain access to a protected system. But JPMorgan’s security team had apparently neglected to upgrade one of its network servers with the dual password scheme. Professionals say that if Company had the dual authentication system they would be able to avoid the

Researchers expected that it can be broken into separate groups and based on categories they can sell for high pays. And also experts estimated that those details could be sold between $1000 and $15000 and each of them can be resold for different purposes.

This information can be used to create phishing emails to find other types of online accounts particularly combined with social network sites. This would turn as a criminal activity in another situation.

Solutions

Customers expect that the data security is the responsibility of the company. If company fails to do so customers will move towards competitors. Therefore it is critical to JP Morgan to provide a good solution for the issue. The solutions for the issue should be focus on both short term as well as long term issues. Company made sure that the damage to customers was limited to the theft of email addresses, home addresses and phone numbers. Professionals guaranteed that hackers accessed customer contact information but no bank account information. This was as a great relief to customers after the