J.P. Morgan to Accelerate Timeline for Cybersecurity Spending Boost

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.

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