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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!  

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.  

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. 
    

2. Develop a written security plan to identify potential risks and vulnerabilities and how they will be addressed and prevented. 

3. Carefully assess service providers who may also have access to customer data. 

4. Establish reasonable administrative, physical, and technical procedures for preventing unauthorized access or use of consumer data. 

5. Create a data security employee training program that covers initial training at hiring and periodic refresher courses. 

6. Monitor the effectiveness of safeguards and initiate corrective action when needed. 

7. Test system procedures by conducting routine vulnerability scans and regular penetration tests. 

8. Establish guidelines for responding to security breaches or incidents. 
    

9. 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!