financial industry sensitive data

Data Security in the Financial Sector

By Michael
April 30, 2015

Business leaders from a wide variety of industries have expressed a strong interest in expanding their data center storage capacity. Through colocation solutions and other types of third-party vendors, they’re doing just that. However, this form of expansion carries with it a wide range of security threats. And that is especially true for high-risk entities, such as political agencies, healthcare organizations and, perhaps most of all, financial institutions.

Cyberattacks against banks of all sizes can occur at any hour of the day. Hackers often do their best to avoid activity during standard working hours. This means that chief executives in the financial sector must do all they can to ensure constant network security. With the help of AssetAware technology, they can trust that offline data is in safe hands.

The threats against banks and other financial groups increase by the day. A comprehensive security plan is not just the right thing to do – it’s a necessity.

New York financial department unveils industry vulnerabilities
A new report by the New York State Department of Financial Services noted that the financial sector continues to have a significant amount of security holes. The investigation found that approximately 30 percent of banks surveyed do not mandate data breach notifications from third-party vendors.

Benjamin Lawsky, the department’s superintendent of financial services, expressed the need for a comprehensive, sector-wide commitment to secure solutions.

“A bank’s cybersecurity is often only as good as the cybersecurity of its vendors,” Lawsky said in the release. “Unfortunately, those third-party firms can provide a backdoor entrance to hackers who are seeking to steal sensitive bank customer data. We will move forward quickly, together with the banks we regulate, to address this urgent matter.”

Mobile security and banking
American Banker reported that approximately 102 million people in the U.S. use mobile banking services. Users had not experienced any significant data breach until a breed of malware from Russia recently began targeting Android phones.

Shirley Inscoe, a senior analyst with Aite Group, told the news outlet that financial institutions have not adequately secured their networks. Technology such as AssetAware could be very useful for a wide range of banks throughout the country, especially those using mobile technologies.

“U.S. banks have done nothing to educate U.S. consumers about malware that targets mobile devices, nor have telecommunications carriers,” Inscoe told the news outlet. “We have been fortunate to date that there have been minimal bank losses from the mobile channel.”

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