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.
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