Cybersecurity Strategies for Protecting Sensitive Financial Data

The sensitive financial information stored in the finance industry across different organizations, like insurance companies, investment firms, banks, etc., has always been appealing to cybercriminals. Over the years, they have been coming up with new techniques to gain unauthorized access to such data and utilize the information to their advantage.

With the growing threats, it is vital for organizations within the industry to formulate and implement cybersecurity strategies for financial data protection. In addition, companies may take advantage of other ways, for example, information technology or IT automation, to safeguard confidential data, as discussed in the article published on Gravity’s blog. Having said that, in this article, we will focus on how one can use technologies, processes, and practices to ensure data security in finance and protect customers, assets, and financial institutions against emerging digital threats. 

Among the various financial data protection best practices, a noteworthy one is the implementation of data encryption methods. Such techniques can help secure the data by transforming the text that is readable into coded information by utilizing encryption algorithms and keys. Let us understand how companies can avail of Gistel’s consulting expertise or the services of similar organizations to leverage encryption effectively. 

#!1 - Use Advanced Encryption Protocols Like AES And TLS/SSL 

Companies can use different kinds of encryption protocols as part of their cybersecurity strategy for data security. Some advanced protocols are as follows: 

• Advanced Encryption Standard or AES: This refers to a symmetric encryption algorithm that uses an identical key for encryption as well as decryption. This protocol is highly efficient in encrypting substantial data. Note that it can secure databases, files, and sensitive communications. 
• Transport Layer Security or TLS: TLS is another encryption protocol that combines asymmetric and symmetric encryption to safeguard the financial information transferred or exchanged over the Internet. It secures web traffic, e-commerce transactions, online banking, etc., and ensures data authentication and security. 
• Secure Sockets Layer or SSL: This encryption-based security protocol digitally signs the sensitive data to ensure data integrity and safeguard user privacy. It minimizes the chances of financial crime by enabling people to differentiate between harmful impostors and reputable websites by showing visual security indicators.  

#2 - Secure Encryption Keys With Proper Storage And Access Controls 

Preventing financial data breaches and eliminating cybersecurity threats also requires companies to store their encryption keys securely and execute access controls. For storage, they can utilize tools like hardware security modules and key management systems. On the other hand, strict access control measures may include executing role-based access control and granting only minimum access to carry out the performance of specific functions. 

As part of an effective strategy concerning cybersecurity for banking and finance, companies must consider using multi-factor authentication. Let us get an idea as to how they can integrate MFA into their strategy.   

#1 - Require MFA For Employees, Vendors, And Administrators 

Organizations can make MFA mandatory for vendors, administrators, and other key employees. This can help safeguard sensitive information as it will make it challenging for hackers or fraudsters to gain unauthorized access, particularly when passwords are compromised. With time, more and more platforms and service providers are integrating MFA into their cybersecurity strategies for financial data security. 

#2 - Utilize Biometrics, One-Time Codes, Or Hardware Tokens 

• Biometrics: Iris and fingerprint scans and facial recognition serve as effective identity verification techniques. 
• Hardware Tokens: These tokens can be smart USB keys or some other physical device that generates codes, which can help in reducing the chances of credential theft risks or phishing. 

One-Time Codes or Password: The use of time-restricted codes can help authenticate the user and serve as an added layer of data security. 

The next measure in the list of financial data protection best practices is the strengthening of access controls, which is possible via the following actions: 

#1 - Apply Role-Based Access Control (RBAC) 

As noted above, companies can start the practice of role-based access control that can limit system access on the basis of pre-specified roles within the organization. When the access becomes role-specific, users are able to take actions that are associated with their duty only. This can prevent misuse of information and unauthorized actions. 

#2 - Regularly Review And Update Access Permissions 

• Organizations need to carry out checks at fixed intervals to ensure the access rights are as required. 
• If any employee leaves the organization, the company must ensure that they do not have access to any confidential company data anymore.      
• Businesses must update permissions from time to time to align with any changes within the organization and ensure compliance. 

#3 - Enforce Strong Password Policies 

• There should be a criterion concerning the minimum password length. Ideally, the minimum length should be 8 characters. 
• Organizations should make it mandatory to use a combination of uppercase, lowercase, special characters, like @ and #, and numbers. 
• Additionally, companies should enforce periodic password resets. 

#4 - Address Identified Risks Promptly With Corrective Measures 

• Organizations must be quick to investigate warning signals they are able to identify instantly and evaluate the possible impact. Also, they can isolate the account or system instantly if they detect any issues related to it. 
• It is important that they take the necessary actions to eliminate the threat as soon as possible. For example, they can use security patches immediately to address the problem. 
• Organizations can carry out root cause analysis to steer clear of the same types of risks in the future. 

When formulating cybersecurity strategies for financial data security in any organization, it is vital to build an incident response plan as well.  Let us find out how organizations can develop such a plan and ensure it remains effective. 

#1 -  Create A Step-By-Step Guide For Handling Security Breaches 

Organizations can take the following steps to create such a plan. 

1. Preparation: The preparation step involves ensuring the employees have the necessary training to respond to a data breach. Moreover, it involves creating different incident response drill situations and conducting mock data breaches on a regular basis to assess the incident response plan. Also, it is vital that the company ensures that every aspect of the plan is approved as well as funded beforehand.
2. Identification: In this stage, the company determines whether a data breach has taken place. It involves asking certain questions, like when the breach happened and whether it has affected operations. 
3. Containment: Post-identification of the breach, companies need to take measures to contain the breach instantly to avoid it from spreading and causing more damage. Experts recommend disconnecting the impacted device from the Internet, if possible. Note that an organization should have both long-term and short-term strategies ready with regard to containment. 
4. Eradication: After containing the issue, the business must eliminate it completely and update its security measures to ensure data integrity.
5. Recovery: The recovery phase involves restoring the impacted systems and returning them to the business environment. In this stage, it is crucial to get the business operations and systems operating again without worrying about another data breach.
6. After-Action Meeting: After completing the investigation and eliminating the problem, all members of the incident response team must have a meeting to point out the learnings from the security breach. In this phase, they figure out what worked and what did not with regard to the plan they developed. Based on the learnings, they make changes to strengthen their cybersecurity strategies for financial data.

#2 - Conduct Regular Drills To Test The Plan's Effectiveness  

Some of the drills that companies may conduct to test the effectiveness of the plan are as follows:

• Functional Exercises: These involve functional drills involving the simulation of certain parts associated with the process of incident response. 
• Red Team Exercises: In the case of such drills, teams carry out simulated attacks, enabling members to test the real-time identification and response capabilities. 
• Crisis Management Drills: These exercises focus on the wider company response, including public relations, key s

With the increasing reliance on financial services, it is crucial for companies to ensure their cybersecurity strategies for financial data security meet the required standards. If they fail to follow the best practices, data breaches can cause significant reputational and financial damage. Hence, to ensure data privacy and integrity, it would be best for them to take the help of reliable IT service providers who can help them integrate the right tools and techniques.