By Emily Glazer
J.P. Morgan Chase & Co. said it expects to increase spending
on cybersecurity in the coming years, accelerating its initial
timeline of such spending growth.
The bank said its annual cybersecurity budget is expected to
nearly double this year, according to a quarterly regulatory
filing. That would bring this year's spending figure to about $500
million, up from $250 million in 2014.
J.P. Morgan also expects its cybersecurity spending to remain at
around $500 million in 2016. The firm suffered a cyberattack last
summer that involved the theft of contact information for about 76
million households.
"Cybersecurity attacks, like the one experienced by the firm,
highlight the need for continued and increased cooperation among
businesses and the government," according to the filing.
J.P. Morgan Chairman and Chief Executive James Dimon said in
October that the bank would double spending on cybersecurity over
the next five years, his first public remarks following the data
breach that hit the nation's largest bank last summer.
He said J.P. Morgan over the next four to five years was likely
to double its spending on cybersecurity from $250 million annually
in 2014. "We have to be vigilant," he said, adding that issues
around cybersecurity "will happen for a long time."
The bank said in its quarterly filing that it continues to work
on strengthening its partnerships with government and law
enforcement agencies in addition to third-party service
providers.
U.S. authorities charged five people in mid-July in the first
cases that have some link to J.P. Morgan's cyberattack last year.
Though the men weren't accused of anything directly related to the
attack, U.S. officials have confirmed a link.
Write to Emily Glazer at emily.glazer@wsj.com
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