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:
- 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.
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.