In recent years, the threat level for data breaches in practically every major industry has risen sharply. With the advancement of technology and digital connectivity, not to mention the dependence of all this in our daily operations as consumers and professionals, many companies are finding themselves vulnerable to data breaches and cyberattacks.
Nothing can be truer for the financial industry, especially consumer banks that house thousands upon thousands of data files and customer information. For example, two Canadian banks were hacked in 2017, causing more than 90,000 customers’ information to be stolen.
Hackers are becoming more sophisticated in their approach to breaking down firewalls and getting to fragile information. Banks need to be diligent more than ever with the way they approach data security and customer safety, and can start by investing or bolstering their insurance for banks. Another is to get educated on the current state of external data breaches. Let’s take a look.
The Way Data Travels
The new reality when it comes to data security in banks is that conventional data protection is moot. While today’s security strategies and plans are focused on breach prevention, including firewalls, antivirus, content filtering, and threat detection, history shows us that all these measures are able to be breached and torn through.
Banks underestimate the magnitude of the risk to their business-critical data while it’s moving across public or private networks. Most banks are sending and receiving data across internal and external networks, carrying the data with a degree of risk exposure.
Attacks against banks and major players in the financial services industry have shined a light on the fact that those attacked need to do better at preventing breaches from happening. There are a number of preventative measures to help keep breaches limited or blocked entirely. Since being breached is no longer a question of “if,” but “when,” banks and their executives have no other option than to be proactive in keeping customer and company data integrity top priorities.
While keeping all the tools like antivirus and firewalls updated and sophisticated, banks should understand that prevention and threat detection can only go a certain length. Banks should move to a framework that is focused on the data itself and provides protection that stays with it, such as implementing stronger authentication measures and the use of encryption.
Cheap Data and Customer Transparency
Data can easily be intercepted and exchange hands cheaply on the dark web. Cyber criminals can use the data for a number of reasons with valuable information, especially financial data. Encryption can help maintain control of the data at financial institutions and can help banks ensure the data security perimeter isn’t breached and the information remains secure. This a responsible approach to keeping the integrity of all stored information safe.
Banks can boost customer trust and transparency by letting their clients know about the security measures that they have put in to motion to protect their data. By keeping the conversation open and allowing customers to know the methods they’re using to keep data as safe as possible will go a long way.
As banks rely more on the digital landscape and tech advances, such as Artificial Intelligence and Augmented Reality to better serve customers through user experience, they need to be more vigilant and take a multi-layered approach to data security. Keeping a sharp eye on external data breach trends and combining that with an up-to-date insurance policy for financial institutions, banks can take a step in the right direction to fight breaches.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.