Data privacy is a hot topic these days. If sensitive information falls into the wrong hands, it can have dire consequences for the person affected. This is a particularly pressing issue for businesses within the financial sector, as they handle vasts amounts of sensitive consumer data on a daily basis.
COMPLIANCE CHALLENGES IN THE FINANCIAL INDUSTRY
Millions of consumers give their personal information to banks and other financial institutions every day. As cybercriminals continue to hone their craft, how these businesses handle that information has become a major concern. To combat the threat of a potential data breach, financial organizations must comply with certain regulatory requirements that have been put in place to protect consumers.
These regulations define how financial institutions should handle data and the ramifications that may come if they fail to protect it. This has put the financial sector in a bit of a pinch, as staying compliant with such regulations is easier said than done. As these companies attempt to remain compliant, they face a few common challenges.
GUARDING AGAINST CYBERATTACKS
The high-value information these organizations manage make the financial industry a prime target for hackers. Hackers use ransomware, phishing, or other tactics to try to gain access to sensitive data. The growing danger presented by hackers has resulted in regulators at the state and federal levels introducing new standards. With each new guideline, it becomes harder for financial establishments to keep up with the changes.
PROTECTING DATA
When someone gives their personal information to a financial institution, that organization becomes responsible for protecting that data. This means these businesses must provide protection for the processing and storage of your data. These responsibilities are amplified by the set of existing and emerging compliance standards in place.
FINANCIAL TECHNOLOGY
Innovations such as mobile e-commerce, digital currencies, and mobile banking have ushered in a new age of technology. Referred to as fintech, or financial technology, these are financial services powered by software or other modern technology. A good example of fintech is the mobile card reader made by Square. This product allows your smartphone to read and process credit cards. While this technology is very convenient, it also brings new security risks that must be accounted for.
ITQUE MAKES COMPLIANCE EASY
Many financial institutions turn to network security providers—such as ITque—for their compliance solutions. This is because ITque has a clear understanding of how IT, technology and compliance intersect and will ensure your financial company meets or exceeds all the technology compliance issues required.
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