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What is a data loss prevention policy? 

A data loss prevention (DLP) policy is a set of rules and guidelines organizations created to help protect sensitive data. It is designed to detect, monitor, and prevent the unauthorized use, access, or disclosure of sensitive data such as:  

  • Personal information 
  • Intellectual property 
  • Financial records 
  • Medical records  

Why do financial institutions need a data loss prevention policy  

Specific types of organizations, like banks and financial institutions, handle more confidential customer data than others. For this reason, these organizations must follow a stringent data loss prevention policy to prevent any information theft or data breaches.  Data loss prevention (DLP) policies help ensure that customers’ sensitive data is kept safe and secure at all times.  

These policies may include elements like: 

  • Limiting access to specific internal systems or documents. 
  • Encrypting emails with sensitive content. 
  • Implementing user authentication systems. 
  • Developing protocols for monitoring network traffic. 
  • Running regular scans for any potential threats. 

Without such policies, there is a risk that personal details such as names, addresses, account numbers, banking  activities, and more can be exposed to criminals or other malicious actors. As a result, not only do financial organizations’ reputations get tarnished when a data breach occurs, but they can get in trouble with the law. 

For example, the Gramm-Leach-Bliley Act (GLBA)’s Safeguards Rule requires financial institutions to use a risk-based approach when creating, modifying, and monitoring a security program to protect consumer data. If organizations don’t adhere to these policies, they can expect to face four major repercussions for non-compliance with data privacy laws: 

  • Inadequate cybersecurity 
  • Expensive fines 
  • High individual penalties 
  • Damaged reputation  

For every GLBA violation, financial institutions can expect to pay up to $100,000.

 

What is data loss prevention, and how can it be prevented?  

Data Loss Prevention (DLP) is an important security measure that enables organizations to protect their sensitive and confidential data from unauthorized access, use, or disclosure.   

DLP involves a variety of technologies and processes that work together to: 

  • Identify and protect valuable data. 
  • Monitor user activities. 
  • Enforcing policies to make sure the data remains secure. 
  • Ensure compliance with laws, regulations, or internal policies. 

With malicious cyberattacks becoming more common and sophisticated, businesses need a solid strategy to prevent potential threats. Unfortunately, data breaches, cybercrime, and data loss are up 600% since the start of the COVID-19 pandemic in 2020.  

Luckily, there are things that you can do at your organization to keep your information safe. Using DLP systems, organizations can reduce the risk of data breaches, which can have significant financial and operational implications.

Best practices for data security at financial institutions

As technology advances and cyber security threats increase, banks must take the necessary steps to protect their customers’ data and assets. But why is such a high level of security so important? 

Whether you simply deposit your income or make larger transactions, investments, and purchases, banks have access to sensitive financial information from both businesses and consumers. For this reason, banks must adhere to the highest level of information security to safeguard their  data from any malicious actors, breaches, or cyberattacks. 

Often, organizations opt to use compression and encryption software to prevent data loss. WinZip® Enterprise is the ideal solution for helping with data loss prevention at your financial institution.

 

What is GLBA compliance, and what does it mean for data protection at financial institutions?

GLBA (Gramm-Leach-Bliley Act) or GLBA compliance ensures that financial institutions adhere to a set of federal guidelines established by the Gramm-Leach-Bliley Act (1999). The act protects customers’ nonpublic personal information (NPI) held by financial institutions. 

To comply with GLBA, these financial institutions must:  

  • Safeguard customer records and information. 
  • Provide customers with notices of their information-sharing practices. 
  • Develop, implement, and maintain safeguards to protect customer information. 

Depending on the severity of the situation, failing to comply with the GLBA as a financial institution can result in various consequences, from a poor reputation to vast fees and fines. 

Securing and ensuring the confidentiality of customers’ private financial information is key to maintaining GLBA compliance. That’s why WinZip® Enterprise works to ensure even the most sensitive types of financial data remain safe. 

History of the GLBA Act 

The GLBA was introduced in the U.S. Senate on May 6th, 1999, by Senator Phil Gramm and co-sponsored by Senator Paul Sarbanes. It was quickly passed with overwhelming bipartisan support in both chambers of Congress and became law on November 12th, 1999, after being signed by President Bill Clinton. 

The GLBA protects private customer details from banking institutions like banks, credit unions, and other authorities located within different states. It also applies to companies outside America registered under certain conditions outlined in this act. 

Who does GLBA apply to?  

The Gramm-Leach-Bliley Act (GLBA) is a regulation in the United States that applies to all financial institutions that collect, store, or use personal financial information from consumers. This includes banks, credit unions, mortgage lenders, investment firms, and insurance companies.  

The GLBA also applies to these institutions’ service providers to store customer data. 

How does GLBA compliance work?  

To align with GLBA compliances, many organizations put a series of safeguards and policies in place. These safeguards include: 

  • Data security policies. 
  • Procedures to detect and prevent unauthorized access to customer data. 
  • Training programs for employees on security and privacy for customer data. 
  • Audit procedures for compliance with the applicable regulations. 
  • Incident response plans in case of a security breach/attack on customer records. 
  • Encryption methods for sensitive data (SSNs, dates of birth, credit card numbers). 
  • Risk assessments and regular reviews to ensure security measures remain in place. 

For example, as per GLBA compliance regulations, companies must also perform annual audits that review portfolios. Moreover, they must provide detailed reports on customer-sensitive data to ensure they are meeting the standards for security. 

Failure to comply with the GLBA can result in civil or criminal penalties, restrictions on activities, and possible revocation of licenses. In addition, severe violations can result in heavy fines, ranging from hundreds of thousands to millions of dollars, depending on the scope and duration of the infringement.  

In general, failing to comply with GLBA regulations puts businesses at risk for serious legal repercussions and may damage their reputation and credibility among potential customers. Therefore, financial institutions must remain compliant with all federal regulations to protect themselves from any unnecessary liabilities related to consumer information privacy. 

What are the 3 key rules of GLBA?  

The GLBA includes several significant provisions to protect consumer data while gaining customers’ trust that their personal information will remain secure.  

The three main rules of the GLBA include: 

Financial Privacy Rule   

Financial Privacy Rule in the GLBA requires certain financial institutions to inform customers how it collects, shares, and safeguards their personal information. Under this rule, the financial institution must provide clear and conspicuous notice about its privacy practices upon initial customer contact.  

In addition, they must identify:  

  • What information is being collected from the customer? 
  • How it intends to use that information. 
  • How it will protect against any misuse of that information. 
  • That customers can opt out of sharing their data with a third party. 

Moreover, the Financial Privacy Rule outlines the specific categories of personal data covered by this, including a customer’s: 

  • Name 
  • Address 
  • SSN 
  • Account numbers 
  • Credit card numbers 
  • Income or investments 
  • Medical history or other health-related information 

Safeguards Rule  

The Safeguards Rule of the GLBA mandates that financial institutions must have measures to protect customers’ personal information’s confidentiality, security, and integrity.  

To ensure compliance with the Safeguards Rule, financial institutions must: 

  1. Designate a qualified individual to coordinate and account for the security program. 
     
  1. Develop a written security plan to identify potential risks and vulnerabilities and how they will be addressed and prevented. 
  1. Carefully assess service providers who may also have access to customer data. 
  1. Establish reasonable administrative, physical, and technical procedures for preventing unauthorized access or use of consumer data. 
  1. Create a data security employee training program that covers initial training at hiring and periodic refresher courses. 
  1. Monitor the effectiveness of safeguards and initiate corrective action when needed. 
  1. Test system procedures by conducting routine vulnerability scans and regular penetration tests. 
  1. Establish guidelines for responding to security breaches or incidents. 
     
  1. Promptly notify affected customers in response to a breach or incident. 

Pretexting provisions  

Pretexting in cyber security is using false or misleading information to gain access to confidential data and systems. Pretexting often involves a malicious actor attempting to access personal information and sensitive accounts. It is commonly used by hackers, scammers, and identity thieves to steal information from victims online. 

The GLBA requires companies in their capacity as service providers to protect customers from pretexting attempts by implementing reasonable policies and procedures. These measures should be designed to detect and respond to pretexting attempts.  

Such provisions should include: 

  • Soliciting and verifying any requests for customer information with written authorization from a customer. 
  • Monitoring for indications of suspicious activity, such as accounts accessed through unrecognized devices or locations. 
  • Restricting access only when security protocols are followed. 
  • Monitoring communication activity on networks for evidence of pretexting activities. 
  • Using secure authentication methods when authenticating customer data. 
  • Ensuring all employees receive proper training on pretexting. 

5 benefits of GLBA compliance  

One of the main benefits of GLBA compliance is that it helps to protect customer privacy. Privacy policies must be clearly explained, ensuring that customers are always aware of how their personal data is used. This heightened security helps to protect any sensitive data collected from customers or held within internal databases, ensuring that it always remains safe and confidential. 

Another benefit of GLBA compliance is increased trust from customers. By being transparent about how personal information is used and stored, customers can rest assured that organizations are taking steps to keep their data secure.  

Such a level of trust can be invaluable in gaining and maintaining loyal business relationships with existing customers. On the other hand, it can positively affect brand perception among potential new customers. This reputation may make new customers more likely to do business with an organization because they feel confident their data will always be kept safe. 

Who enforces GLBA & potential GLBA non-compliance penalties  

The GLBA is enforced by the Federal Trade Commission (FTC). The FTC enforces the provisions of GLBA, including how companies must protect customers’ financial information.  

Potential penalties for non-compliance with the GLBA vary depending on the type and severity of the violation. Below are some potential GLBA non-compliance penalties: 

1. Civil monetary penalties  

Individuals or companies that have not complied with the data security provisions within GLBA may face civil monetary penalties of up to $100,000 per violation or up to $5 million for a series of breaches in a single year. 

2. Cease and desist orders 

Companies found to be in violation may be issued cease and desist orders by government regulators. These orders could make them stop certain activities until corrective measures can be taken. 

3. Enforcement actions 

In more serious cases, regulators can take enforcement actions against companies. This can include criminal prosecution and financial sanctions such as fines, restitution, and disgorgement (repayment of profits from illegal or wrongful acts). 

4. Revocation of licenses 

Depending on the nature of the violation, regulators can revoke licenses held by businesses under GLBA, meaning they will no longer be able to conduct business as usual until corrective measures are taken. 

5. Removal from service provider directory 

Companies that have not taken adequate measures to protect customer privacy could be removed from service provider directories maintained by government agencies such as the Federal Trade Commission or Federal Financial Institutions Examination Council. 

How WinZip Enterprise Protects Sensitive Financial Data 

WinZip Enterprise is a powerful, customizable solution that gives organizations industry-leading file encryption, data management, and compression capabilities. 

Its file-level Advanced Encryption Standard (AES) encryption protects data in transit and at rest, ensuring compliance with major standards such as the Federal Information Processing Standard (FIPS) 140-2 and Defense Federal Acquisition Regulation Supplement (DFARS) regulations. 

In addition to bank and military-grade encryption, WinZip Enterprise gives IT administrators full control over their data environments. The solution is fully customizable, ensuring that it meets your unique organizational needs. 

Find out how WinZip Enterprise can help you keep your data safe today! 

What is data exfiltration and how to prevent it?

Data exfiltration, otherwise known as data extrusion or data theft, refers to the unauthorized transfer of personal information from one computer or device to another. Data exfiltration can happen manually, by a person with physical access to a device, or automatically through malicious programming and software. Essentially, data exfiltration is a type of security breach that happens when a person or company’s data is transferred, copied, or stolen from a device or software without permission.

There are many techniques that malicious actors use to steal data. Often, these cyber-attacks are targeted thefts used to gain access to specific valuable information.

Unfortunately, data extrusion can be exceedingly difficult to catch. Hackers often mask theft by making it look like network traffic that is typical to the user, therefore making it easy to miss. Once a person or company’s data is breached, the damage can be unfathomable.

So, what does data exfiltration mean for your business? Without the proper understanding, care, and precautions, you can’t be sure that your data is safe. When your data isn’t safe, neither is your business. To adequately keep you and your company clear of hackers, it is vital to understand not just what data extrusion is but how to prevent these attacks from ever happening.

Using data encryption, management, and sharing software, such as WinZip® Enterprise, can help protect users from data exfiltration. Solutions like WinZip Enterprise are essential to eliminating the risk of data loss by providing file tracking that can show when files or data are moved, edited, or deleted.

Data exfiltration vs. ransomware attacks

Ransomware attacks use malicious software to threaten to publish a victim’s data or block access to data permanently unless a ransom is paid, usually via cryptocurrency. For a long time, this type of extortion was one of the most common threats to organizations worldwide. However, the value of Crypto has plummeted in recent years, which has reduced the monetary appeal of once-popular ransomware attacks.

That’s where data exfiltration takes the main stage. Data extrusion is a type of espionage that’s becoming more prevalent rapidly. Rather than holding information or data captive, exfiltration actors will try to extort their victims, threatening to release their confidential information. These malicious actors often threaten to sell or release information to unscrupulous third parties or the public.

Public data exposure through data exfiltration is often considered more dangerous than ransomware. When a ransomware attack is performed, there’s usually an option to pay a ransom to satisfy the hackers, or a company can try to retrieve backups of their data if it’s properly stored. Leaked data, however, may prove to be wholly unfixable and ultimately more detrimental.

Examples of recent data exfiltration and ransomware attacks

Today, cyber-attacks are widespread and frequent. According to the Identity Theft Resource Center, there were over 1,864 data breaches in 2021, which was 68% more than in 2020. Even while organizations continue to improve their firewalls and detection systems, exfiltration actors are still finding a way in.

In April of 2022, the mobile payment company called Cash App reported that a former employee downloaded the personal information and data of over 8.2 million former and current customers. The hacker stole data that included full names, stock trading information, portfolio values, and brokerage account numbers.

On a smaller scale, over 2,000 people had their credit card information stolen from the budget airline EasyJet in 2020. This highly sophisticated cyberattack has been linked to a group of Chinese hackers that had targeted other airlines in the surrounding months. Currently, EasyJet is facing an £18 billion class-action lawsuit from the customers impacted by the data breach.

The examples of data exfiltration and ransomware attacks are limitless. The targeted entities range from oil pipeline operators to companies that protect sensitive personal information. Unfortunately, data theft and ransomware are only worsening, and no company is truly safe. The best way to avoid trouble is to use file management and compression software to keep you and your personal information secure.

Cost of data exfiltration or ransomware attacks for businesses

According to the 2022 cost of a data breach report by IBM and the Ponemon Institute, the average cost of a data breach in 2022 has reached a record high of $4.35 million. The cost of data exfiltration can be extensive. Customer turnover, legal charges, technical activities, loss of brand equity, and drain on employee productivity are just some of the many factors that are adversely affected by ransomware and data breaches.

4 reasons why secure file storage and sharing are essential

Secure file sharing and storage are essential for protecting sensitive information as it travels between users and networks. Without secure sharing platforms, your data can be easily breached. Ideally, an organization should use file-sharing and storing solutions specifically designed for businesses.

WinZip Enterprise® can provide your organization with incredible benefits that keep your data and information safe. There are four reasons why secure file storage and sharing are essential:

1. Enhanced data protection

When employees use unauthorized services, applications, systems, and accounts that don’t meet their company’s security standards, they risk leaking valuable information. Using WinZip Enterprise, managers can uphold standards and security protocols that secure organizational data.

2. Improved collaboration among team members

A secure file-sharing platform, such as WinZip Enterprise, improves collaboration among employees, whether they’re working from the office, home, or at another location. This software makes it simple to share all critical digital assets in one place, ensuring that everyone can find the information and data they need when needed.

3. Safe and effective file sharing capabilities

Many collaboration tools on the market make it difficult to share files without accidentally deleting or damaging them. For example, secure file-sharing platforms enable managers to control employee access levels for shared files, which adds an essential layer of protection. That way, unauthorized people can’t access, view, edit or delete files without permission.

4. Better data accountability

It’s oddly common for organizations to share sensitive files with all or most of their employees, which significantly increases the chance of data theft or exfiltration. Using WinZip Enterprise, administrators can limit what applications users and employees can access to ensure that data doesn’t become compromised.

IT requirements for protecting sensitive data

Every year, the government passes new laws and regulations regarding how companies must protect personal information and data. To date, there have been hundreds of cybersecurity-related laws and regulations enacted over the last four years alone.

Sensitive data that is referred to in these compliance laws include an individual’s:

  • Address
  • Health information
  • Birthday
  • Social security number
  • Debit/credit card information
  • Ethnic or racial data
  • Religious beliefs
  • Political standpoints
  • Biometric or genetic data
  • Sex or gender identification

In order to adhere to these compliance requirements and mitigate cyber threats, businesses need to take a security-first approach. Below are seven ways for organizations to meet compliance requirements for cybersecurity-related legislation:

  • Assess risks: Organizations should identify all devices, users, information, applications, and networks. Then, they should categorize these factors as “high-risk” or “low-risk” to assess potential attack vectors.

  • Set controls: Once organizations recognize their risks, they need to set appropriate controls to ensure this sensitive data is secure from malicious actors.

  • Monitor control effectiveness: Controls that organizations set in the present day may not be effective in the future. Organizations must continuously monitor controls so that data doesn’t become vulnerable.

  • Remediate risks: Risks to sensitive information are inevitable. Organizations must be able to identify their weaknesses and prioritize which risks are of the highest priority and need focus first.

  • Document activities: Organizations must document all processes, activities, and policies to show that their policies and security efforts are effective. This process is closely watched by an auditor who will report on any issues or findings within an organization’s security program.

  • Report to the Board of Directors or appropriate government body: Much of the legislation passed requires senior leadership to report to them with any issues or updates they may have to protect customer information. If this isn’t done properly, the government can hold corporate leadership responsible.

How WinZip enterprise can help your organization stay safe from data theft

WinZip Enterprise secures, manages, and protects sensitive business data. This fully customizable solution empowers IT admins with streamlined controls over user access, encryption standards, and protocols for storing and sharing information.

Detecting and stopping data exfiltration is key to eliminating data loss. Therefore, solutions like WinZip Enterprise are essential by providing file tracking, which records every instance of a file being moved, edited, or deleted. These insights help organizations review system activity and identify both insider attacks and external threats.

WinZip Enterprise leverages military-grade AES encryption for unsurpassed data protection at rest and in transit. This keeps files safe whether they are in storage or being shared, preventing unauthorized access and associated costly unauthorized data transfers that can result in extortion or even worse acts.

See how WinZip Enterprise can help protect your organization from data exfiltration.

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