• Skip to primary navigation
  • Skip to main content
WinZip Enterprise Blog

WinZip Enterprise Blog

Protecting the world's most sensitive data for over 30 years.

  • Articles
    • Backup
    • Company News
    • Compression
    • Encryption
    • File Sharing
    • Security
  • Resources
  • Get a Quote
Blog Home > WinZip Blog

WinZip Blog

Securing the cloud: safeguarding your organization from cloud security risks 

WinZip Blog

Cloud security vulnerabilities

As technology evolves and more organizations turn to cloud computing solutions, data security becomes more important — and more challenging — than ever. While the cloud offers numerous benefits for businesses, including scalability, cost-effectiveness, and remote work capabilities (just to name a few), it also introduces new security risks and vulnerabilities.  

Let’s explore the challenges that organizations face along with practical, actionable solutions and cloud security data programs that help to mitigate the risks.  

The growing issue of cloud security risks 

According to a recent report from Cloud Computing News, a staggering 81% of companies experienced a cloud security incident in the past year alone. This statistic highlights the pressing need for organizations to address cloud security concerns, particularly as the global cloud computing market continues to expand. Clearly, ensuring data security in the cloud is crucial for any organization currently utilizing or considering moving to the cloud.  

While the adoption of the cloud has been invaluable in facilitating remote work and moreover, revolutionized the way that we store, process, and even analyze data, it brings with it certain vulnerabilities that amplify data security risks.  

This is why organizations need to implement robust cloud storage security measures even as they enjoy the myriad advantages of the cloud, since proper encryption strategies, access controls or user access policies, and regular vulnerability assessments are all crucial for keeping your organization’s data secure in the cloud.  

Why the cloud amplifies security threats 

Cloud computing presents unique security vulnerabilities that organizations must address to protect their sensitive data. Read on to uncover some of the top data security vulnerabilities in the cloud and explore strategies to safeguard your organization’s data.  

  • Misconfigured cloud storage. Misconfigurations in cloud storage can inadvertently expose sensitive information to unauthorized access. To prevent this issue, the team members responsible for data security should double-check cloud storage security configurations during the initial setup and verify that they are still correct on a regular basis as well as after any major changes are made. Additionally, controlling who can create and configure cloud resources, developing and maintaining strict user access policies, and utilizing specialized tools to assess security configurations can bolster data protection.  
  • Shared infrastructure risks in the public cloud. Since cloud services are often shared among multiple users and organizations, the security of one entity can impact others. This means that a security flaw in the cloud provider’s infrastructure or misconfigurations can potentially expose the data of multiple customers on that cloud simultaneously, amplifying the impact of a security incident.  
  • Data transfer and storage vulnerabilities. The cloud relies on data transmission and storage over networks and third-party servers, introducing additional risks. Data in transit may be susceptible to interception and unauthorized access if not properly encrypted. Similarly, data at rest within cloud storage systems can be compromised if the cloud provider does not implement vigorous encryption and access controls.  
  • Increased attack surfaces. Cloud environments are often composed of multiple interconnected systems and networks, creating a larger attack surface for potential intrusions. Attackers can exploit vulnerabilities in one part of the cloud infrastructure to gain unauthorized access to sensitive data stored elsewhere, leading to potential data breaches or unauthorized data modifications.  
  • Loss or theft of intellectual property. The loss or theft of intellectual property (IP) is a major concern for organizations that leverage the cloud. Data alteration, deletion, and loss of access are common causes of IP data breaches. Organizations can mitigate these risks by prioritizing regular backups, employing data loss prevention (DLP) software, and implementing stringent encryption practices. Geo-diversifying backups or backing up data in multiple locations ensures redundancy and enhances data resilience.  
  • Compliance violations or regulatory actions. Simply transferring applications to a public or shared cloud does not guarantee regulatory compliance, even if you use a trusted cloud provider. In fact, compliance in the cloud can be even more challenging than keeping your data on-premises due to privacy mandates like CCPA, PCI-DSS, and GDPR. To address this concern, organizations should carefully review cloud service agreements, seek clear cloud and data security policies, and establish an incident response plan for any violations related to cloud computing. Data security strategies that include encryption according to the necessary standards also facilitate compliance.  
  • Poor or improper access management. Improper access management remains one of the most prevalent cloud computing security risks. Issues such as managing a distributed (remote or hybrid) workforce, user password fatigue or improper/poorly chosen passwords, inactive assigned users, and multiple administrator accounts can compromise data security. Organizations can counter these risks by developing a comprehensive data governance framework, link human user accounts to centralized directories, and regularly audit user roles, privileges, and access via a rigid user access policy. 

Choosing effective cloud security solutions: what to look for in cloud security 

If your organization is moving to the cloud or already leverages cloud computing, it is essential to seek a security solution with the features that best align with your specific needs, including any industry-specific regulations or standards that you must adhere to such as HIPAA, GDPR, or similar governance. What’s more, if your IT department needs to provide staff with secure remote access to the cloud, tightly controlled security becomes more vital. 

A data security solution that works in the cloud and offers data protection, encryption, and access management tools will enable your organization to address security challenges in 2023 — and beyond, enhancing your cloud security posture and protecting critical business assets.  

Learn more about mitigating cloud security risks  

The growing popularity of the cloud means that cloud vulnerabilities have become a major challenge for IT departments and anyone else responsible for data security at their organization. In fact, we recently surveyed nearly 500 data security professionals about the state of data security in 2023, and cloud security risks were the second most reported external security threat, with 42% of survey respondents claiming that it was a major concern for their organization. 

The security of cloud computing in 2023 — and beyond  

It goes to follow that securing the cloud is paramount in today’s era of remote work and users needing to access sensitive company data from anywhere, using any device. While cloud computing offers immense benefits, data security professionals need to be proactive about the security risks posed by switching to the cloud.  

By implementing measures to prevent misconfigurations, protect intellectual property, ensure regulatory compliance, and strengthen access management, organizations can protect their data in the cloud. Embracing an effective data security solution like WinZip® Enterprise can fortify your organization’s defenses and mitigate emerging threats in the cloud (and elsewhere).

Try it now and learn how to safeguard your organization’s future. 

Access the full survey report!  

What is a data loss prevention policy? 

WinZip Blog

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.

Data loss prevention policy best practices  

Data security best practices help to ensure that sensitive information remains secure and prevents unauthorized access.  

Credit card numbers, personal information, medical records, and intellectual property are just some types of data that should be protected from unauthorized individuals or organizations. Therefore, it’s crucial to implement DLP security measures and best practices to prevent malicious attackers from accessing sensitive data without permission. 

Some essential data security best practices include: 

  • Developing secure networks. 
  • Embracing encryption technology. 
  • Regularly backing up data. 
  • Creating detailed user access policies. 
  • Educating employees on cyber security best practices. 
  • Implementing antivirus and anti-malware software. 

The 3 types of data loss prevention strategies  

Data loss prevention (DLP) is an important part of data security in any organization. There are three types of data loss prevention strategies commonly used by organizations today.  

1. Network data loss prevention 

Often referred to as traditional or legacy DLP, network DLP is designed to monitor and protect data transmission within an organization’s internal network. It scans both inbound and outbound traffic for suspicious or malicious actors, such as confidential data being sent outside the organization.  

This type of DLP is typically used on-site and managed by IT personnel within the organization. 

2. Endpoint data loss prevention 

Also known as device control, endpoint DLP is designed to protect endpoint devices such as laptops, desktops, or other mobile devices used to access corporate data and networks. It can restrict user activities on an individual device level through policy enforcement, such as file blocking/sharing, application control, and content inspection. 

For example, an endpoint device policy could be set up to block USB drives from connecting to a laptop unless it meets certain criteria set by IT admins first, such as having specific encryption measures installed. 

3. Cloud data loss prevention  

Cloud DLP helps organizations detect data risk from cloud applications, such as Dropbox or Google Drive, where users may store sensitive information without proper authorization or encryption measures in place. 

Cloud DLP solutions can detect security policy violations by analyzing data shared across different cloud apps to prevent unauthorized access before they cause any real damage.  

Common inclusions in data loss prevention policies  

The three main reasons that organizations establish data loss prevention policies are: 
 

  1. Compliance. Governments have implemented various regulations for organizations to collect and safeguard personal identifiable information or PII. As a part of their data compliance, organizations must develop and enforce DLP policies. 
     
  1. Intellectual property. Trade secrets and proprietary information need to be protected from unauthorized access. This helps keep such information secure, preventing any potential abuse or misuse. 
     
  1. Data visibility. Organizations often benefit from tracking how various users access and interact with data, providing them with essential insights. 

Now that we understand why organizations establish DLP policies, we must understand the common inclusions. A typical data loss prevention policy contains three different elements: 

Location  

Location defines where the policy will be enforced. 

For example, a company may set up a DLP policy that detects information protected by The Health Insurance Portability and Accountability Act (HIPAA), a federal law that requires organizations to protect sensitive patient health information.  The location would be wherever that patient’s health information is stored. 

Conditions 

The conditions are the parameters to which the policy is applied. 

For example, a DLP policy may state conditions such as: 

  • Old data should be deleted to maintain compliance. 
  • Data is being used differently than agreed upon by the user. 
  • Personal data is stored in places that are not protected. 

Action  

If a specific situation meets any of the conditions specified in the DLP policy, then action is taken to prevent it. 

Actions correspond directly to the conditions. For example, data may be deleted if it’s found to violate HIPAA, or personal data may be blocked if it’s being stored in an unsafe environment.  

7 steps to creating a data loss prevention policy  

Numerous fundamental moving parts make up a successful data loss prevention policy. These are the generalized guidelines that you can follow to create a DLP policy at your organization. 

  1. Prioritize which data is to be protected. All data is different and requires unique care. Therefore, the first step of establishing a DLP policy program is to determine the most sensitive data and begin protecting that first. 
  1. Establish a framework. Develop a detailed policy outlining access rights and acceptable use to ensure all employees understand their responsibility for protecting data. This includes rules on secure storage, encryption, email regulations, etc. 
  1. Assess risks. Consider potential threats such as hackers and internal employee mistakes in order to know what areas need additional security measures in place. Also, develop processes to minimize potential damage if a breach occurs.   
  1. Set up technical controls. Implementing strong technical security measures is essential for ensuring the success of keeping your data confidential. This includes antivirus software, firewalls, two-factor authentication, user access controls, etc. 
  1. Monitor activity. Regularly monitor activity and user behaviors so that suspicious activities can be flagged immediately and addressed, if necessary, before any problems or damage occurs. 
  1. Train your staff. Ensure all employees are well-versed in the standards and guidelines within your DLP policy. In addition, staff must understand how they should handle secure information so as to not expose it due to negligence or lack of knowledge about proper procedures. 
  1. Roll out your policy. Watch your DLP program come to life. Make sure to continuously monitor and adjust where necessary. 

Why you should use WinZip Enterprise to protect your organization from data loss 

WinZip® Enterprise is a compression and encryption software that is ideal for helping with data loss prevention. It utilizes robust 256-bit AES encryption technology to protect private files from unauthorized access in case of data breaches. This ensures that only those with the correct authorization can open these files. 

Furthermore, WinZip Enterprise’s auto-backup feature allows users to set up a scheduled backup plan to automatically back up essential data at regular intervals to protect it even when hardware fails, or user error occurs. With all these features combined, this software can help you keep your critical information safe and secure while minimizing the risk of data loss due to hardware failures or human error.  

Discover how WinZip Enterprise can help your organization maintain proper data loss security and avoid negative consequences. 

What is data loss prevention, and how can it be accomplished

WinZip Blog

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.

What are some of the primary causes of data loss?   

There isn’t one reason why organizations experience data loss. However, there are some common culprits. Some of these include: 

  1. User error or negligence. Mistakes or lack of experience with devices can lead to user errors which could result in data loss. Examples include accidental deletion of files, misplaced documents, or lost passwords. 
  1. Hard drive failure. Most hard drives eventually fail and can lead to total data loss if the situation is not resolved quickly. 
  1. System crashes. Software corruption, viruses, and incompatible upgrades can all cause system crashes that may lead to data loss. 
  1. Data theft or unauthorized access. Malicious actors may try to access sensitive information by stealing physical storage devices such as external hard drives or laptops. Theft can occur when  the data on the device is not adequately secured. 
  1. Software glitches. Unforeseen software glitches that occur when systems are upgraded, patched, or changed without being properly tested may lead to system errors, resulting in data loss. 

What are some key data loss prevention best practices?  

Following data security best practices helps to ensure that sensitive information (such as PHI and PII) remains secure and prevents unauthorized access.  

Credit card numbers, personal information, medical records, and intellectual property are just some of the types of data that are considered Protected Health Information (PHI) and Personally Identifiable Information (PII). PHI is defined as any information in a medical or designated record that can be used to identify an individual. PII is defined as information that can be used to distinguish or trace an individual’s identity. 

Therefore, it’s crucial to implement security measures and data loss prevention best practices to prevent malicious attackers from accessing sensitive data without permission. 

Some common and vital data security best practices include: 

  • Developing secure networks. 
  • Embracing encryption technology. 
  • Regularly backing up data. 
  • Creating detailed user access policies. 
  • Educating employees on cyber security best practices. 
  • Implementing antivirus and anti-malware software. 

5 Ways to prevent data loss  

Data loss is an unwelcome event that often has negative financial implications and causes reputational damage. Fortunately, there are several ways that organizations can mitigate the risk of data loss and keep their valuable information secure.  

1. Establish security policies 

Creating and using comprehensive security policies is one way to prevent data loss. These policies should clearly outline user access rights and establish rules for physically safeguarding sensitive data and maintaining backups.  

2. Schedule regular data backups 

Data backups are a key part of data loss prevention, as they help to ensure that essential data is not permanently lost in the event of an unexpected failure or disaster. Therefore, data backups should be done regularly, ideally daily but at least weekly.  

3. Use encryption 

Encrypting data involves using cryptographic algorithms to scramble data so it cannot be understood without a key or password. Once data is encrypted, the data can only be decrypted using the original passcode or key. 

Encryption ensures that if something happens to one particular server, storage device, or file, the encrypted backed-up data would remain intact.  

4. Require staff education and training  

Educating staff on the best practices for data storage is one of the most effective ways to prevent data loss. In addition, teaching proper data handling techniques can dramatically reduce the risk of human error. 

Training should include how to securely transfer data, store and encrypt data, and maintain regular backups. In addition, staff should be made aware of any security policies in place and the importance of following them when dealing with sensitive information.   

5. Keep equipment and software updated and patched  

Regularly updating hardware drivers, firewall configurations, and software applications to ensure the latest security patches are installed is vital to preventing data loss. This should be done in combination with installing software that protects against malicious threats such as viruses and malware that could potentially steal or damage your organization’s data.  

By using WinZipⓇ Enterprise, you can compress files, save space, and ensure your most sensitive data is never compromised. 

How do data loss prevention solutions and strategies work?  

DLP solutions use  encryption, file-level monitoring, policy management, and other technologies and tools to identify sensitive data and help organizations secure it. 

The first step of any data loss prevention strategy is to identify the type(s) of data that needs to be protected. Once this has been established, organizations can use various methods to secure this data. 

For example, an organization may deploy monitoring software designed to detect when users share or download confidential information or certain types of data outside of the company network. In addition, they may also establish policies governing who can view or share specific files. These approaches help to ensure that confidential information remains within the organization’s control. 

In addition, encryption technology is often utilized for data stored on networks or cloud storage platforms. This helps ensure that even if malicious actors could gain access to the system containing sensitive data, it would remain unreadable and unusable without an encryption key. 

Moreover, system backups are essential for information management. Organizations should consider creating a comprehensive backup strategy to ensure all data is stored in multiple formats and locations. This is also called the 3-2-1 rule, which says you should always have three copies of your data: two versions on two different storage medias and one version stored offsite.  

How to protect data loss with WinZip Enterprise  

WinZip Enterprise offers military-grade encryption, protecting data in transit and at rest. This enhanced security level complies with all major standards, including Federal Information Processing Standard (FIPS) 140-2 and FIPS 197. It also prevents data loss and extends corporate file protection with Windows Information Protection (WIP) support. 

Moreover, WinZip Enterprise features customizable access to data for employees at every level in your company. This ensures that employees who change roles or leave the company have their data access privileges updated or removed immediately. 

Lastly, WinZip Enterprise allows administrators to schedule data backups from the in-program Explorer menu. Moreover, it is compatible with some of the most-used cloud platforms on the market, including Amazon S3, Alibaba Cloud, Microsoft Azure, and more. 

Discover how WinZip Enterprise can help your organization prevent data loss, maintain data security, and avoid potential negative consequences. 
 

Best practices for data security at financial institutions

WinZip Blog

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.

Why financial institutions need data loss security solutions  

Financial institutions deal with incredibly sensitive information, such as bank account numbers, personal identification numbers (PINs), and credit card information. This data is often called PII or personally identifiable information. For this reason, they need to protect their customers’ data and ensure that it cannot be accessed by unauthorized parties or used fraudulently. 

Financial institutions must also remain compliant with federal regulations to ensure that they are securely storing and processing customer data safely. These regulatory compliance requirements for the financial industry act as the rules that a business must follow. 

In order to keep PII safe and compliant with the aforementioned regulations, financial institutions need specific kinds of data loss security solutions. These methods include:  

  • Data encryption. 
  • Two-factor authentication when accessing accounts. 
  • Firewalls to block unauthorized access. 
  • Antivirus software. 
  • Layered access controls with varying levels of authentication.  
  • 24/7 monitoring of systems for threats. 

Without robust security measures in place, financial organizations risk serious financial losses from internal failures or external malicious attacks. Additionally, failing to protect PII can result in severe and expensive consequences. 

5 data loss security best practices for financial institutions 

Financial institutions must take extra care when protecting and preventing data loss. This is why having a robust security framework is vital.   

Five data loss security best practices for financial institutions include: 

1. Audit trails  

Audit trails provide an auditable record of all user activity on the system or network. They allow financial institutions to easily detect unauthorized access and activities by ascertaining the following:  

  • Who has accessed the data?  
  • What data was accessed?  
  • What time was the data accessed?  
  • What changes were made to the data? 

With an audit trail in place, it is much easier for a financial organization to investigate potential fraud or suspicious activity because it’s all traceable. Furthermore, audit trails provide strong evidence that a business is actively monitoring its systems and maintaining the security of sensitive PII.  

2. Secure infrastructure 

Securing a financial institution’s infrastructure means creating multiple layers of protection to prevent hackers and malicious actors from infiltrating systems or stealing data. This refers to database systems, servers where data is stored, and the boundaries established to secure it.  

Building a secure infrastructure involves implementing controls such as: 

  • Firewalls. 
  • Encryption technology. 
  • Two-factor authentication.  
  • Regular system testing for vulnerabilities. 

These measures are essential for protecting customers’ sensitive financial information and ensuring that their trust in the financial institution remains intact. 

3. Authentication 

Authentication is critical for financial institutions because it provides an extra layer of protection against unauthorized access to sensitive data. Authentication requires users to provide specific credentials (such as a username and password) to gain access to information or accounts. This helps ensure that only authorized personnel can view confidential data. 

Furthermore, authentication protocols, such as two-factor authentication (2FA), use additional technologies (one-time passwords or biometrics) to strengthen security further. 

4. Secure processes  

By following certain secure procedures and protocols when dealing with personal data (such as passwords and PINs), financial institutions can ensure that customer PII always remains confidential. 

Secure processes also create transparency in the way banks do business. This allows customers to understand how their accounts are managed while ensuring their data is always kept safe and secure.  

For example, Know Your Customer (KYC) is a financial due diligence process companies use to monitor customer risk and ensure customer identity. In addition, non-disclosure agreements (NDAs) are legally enforced agreements to ensure that certain information will remain confidential. 

5. Constant communication  

Consistent communication is key for financial institutions because it allows important information to get to the right people at the right time. This is true for both customers and employees. 

For customers, consistent communication with their bank ensures that they will always be notified if any possible changes or threats related to their data occur. This allows them to take proactive steps and respond quickly if anything does happen. 

On the other hand, consistent communication ensures that any employees who handle confidential customer information are always updated about changes in company policy, procedures, or security protocols so they can stay compliant with regulations.  

How data loss prevention solutions protect banks’ sensitive data 

Data loss prevention (DLP) solutions preserve a bank’s sensitive data by monitoring, discovering, and preventing the unauthorized movement of data.  

DLP solutions use digital analytics to identify suspicious activity on networks, endpoints, and cloud systems. These insights are then used to control access to sensitive information based on specified rules or policies. 

In addition, data loss prevention solutions may also incorporate analytics technologies such as machine learning. For example, machine learning detects abnormal user behavior and prevents potential threats from accessing a bank’s privileged information. 

Lastly, DLP systems can be configured tightly to restrict download capabilities for files containing confidential information like credit card numbers, social security numbers, and other PII. 

All these features help banks protect their sensitive data from external threats and internal breaches.  

How to protect data loss at your organization with WinZip Enterprise   

WinZip Enterprise is a compression and encryption software that is ideal for helping with data loss prevention. It utilizes robust 256-bit AES encryption technology to protect private files from unauthorized access in case of data breaches. This ensures that only those with the correct authorization can open these files.  

Moreover, WinZip Enterprise features customizable access to data for employees at every level in your company. Customized access ensures that employees who change roles or leave the company have their data access privileges updated or removed immediately.  

Discover how WinZip Enterprise can help your financial organization prevent data loss, maintain data security, and avoid malicious actors.  

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

WinZip Blog

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! 

  • Arrow Left
  • Go to page 1
  • Go to page 2
  • Go to page 3
  • Go to page 4
  • Go to page 5
  • Interim pages omitted …
  • Go to page 18
  • Arrow Right

Learn more about WinZip Enterprise today!

Get a Quote

Connect With Us

  • Facebook
  • Twitter
  • YouTube

Copyright ©2023 Corel Corporation. All Rights Reserved. WinZip is a Registered Trademark of Corel Corporation