New York-based JPMorgan Chase & Co. (NYSE:JPM) found itself the victim in one of the largest data breaches in history early this month with over 75 million household and 7 million small businesses. The breach gave the attackers access to names, addresses, email addresses, and phone numbers.
Of course, JPMorgan Chase & Co. (NYSE:JPM) is hardly the first and won’t be the last firm or company to have its data stolen. Just last Friday Sears announced that its Kmart stores were under attack dating back a month and likely compromised customers’ debit and credit cards. Target Corporation (NYSE:TGT)’s data breach last year forced the resignation of its CEO, while The Home Depot, Inc. (NYSE:HD) also suffered a major breach this year.
“Cyber is a big deal,” Dimon said on a call with reporters on Tuesday after his firm reported third quarter earnings. “It’s going to be an ongoing battle, and unfortunately battles will be lost.”
“We do think that, unfortunately, there are going to be some wins and losses in this,” said Dimon. “We don’t want to be sitting here saying you will absolutely be protected because it would put you in a false sense of security.”
JPMorgan’s security expenses to double?
In order to minimize those losses, JPMorgan Chase & Co. (NYSE:JPM) will likely double the amount of money they currently spend to prevent cyber attacks. Presently, the firm spends around $250 million to that end and employs about 1,000 people to keep threats at bay.
The rising costs to prevent cyber attacks is rooted in the fact that Dimon knows that threats will only become more sophisticated and widespread in the future. Dimon reiterated that JPMorgan will invest in “any and all things we need to do” to protect its customers.
During the same conference call, Dimon told reporters that the outlook for his health was “excellent” following the treatment he received for his recently diagnosed throat cancer. “I feel good and am happy that the treatments are over,” said Dimon.