Stripping security expenditure 'could be false economy for firms'

19:14 30th June 2010

Getting rid of IT security expenditure or scaling it back to save costs could expose companies to risks, according to Neil Munroe, external affairs director for Equifax.

"I think what we see, generally, is that in times of financial stress this type of activity – fraud, and various other types of security issues around that – increases," Mr Munroe said.

He went on to say that managers are desperately trying to find where to cut costs as a result of hard economic times and that there is an increasing "temptation" to reduce expenditure in things like security software, a topic that could be taught in IT courses.

"It could be a false economy to take security resources out," he added.

His comments emerged as research released this week by ABM, an intelligence and investigation management software solutions specialist, suggested 29 per cent of organisations have scaled back their security budgets in the last two years, while in the same period around half have seen increasing incidences of theft and fraud.

Posted by Derek Oldman

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