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Losing customer data should be as scary as someone pulling a real-life bank heist. Data converts to dollars and cents, and for a banking institution, losing sensitive information can have severe consequences.
From financial penalties to reputational damage, data loss in the banking industry is a major setback. What does your bank have in place for data loss prevention and do you know if it actually works?
What Is Data Loss Prevention?
Data loss prevention is a crucial cybersecurity discipline that banks and financial institutions must adopt to safeguard sensitive information, such as customer data, financial reports, and intellectual property.
It involves a suite of tools, policies, and procedures designed to detect potential data incidents and prevent data exfiltration by monitoring, detecting, and blocking sensitive data while in use, in motion, and at rest.
DLP Versus Data Leak Prevention
While often used interchangeably, data loss prevention and data leak prevention (also known as leak prevention and monitoring) have some important differences. DLP encompasses broader security measures, addressing the full spectrum of data protection, whereas data leak prevention focuses specifically on mitigating the unauthorized transmission of data.
What Are Common Causes of Data Loss in Banking?
Data loss can occur through various channels, many of which are operational in nature. An employee might send private information to the wrong email or print out a customer report and give it to the wrong customer.
It can also happen due to malicious attacks, such as phishing scams or ransomware attacks.
Some of the common causes of data loss in banking include:
- Human error: Mistakes made by employees, such as accidental deletion or sharing sensitive information with unauthorized parties.
- Insider threats: Intentional actions taken by employees or contractors, including stealing and selling customer data for financial gain.
- Cyber attacks: Malicious actors gaining unauthorized access to sensitive information through hacking or social engineering tactics.
- System and hardware failures: Technical issues such as server crashes, power outages, or equipment malfunctions can lead to data loss.
How Do Data Loss Incidents Impact the Banking Sector?
The repercussions of data loss in the banking industry are far-reaching, from erosion of customer trust to severe financial penalties for non-compliance with data protection regulations. The damage is not only financial; it extends to irrevocable harm to an institution’s reputation, which can take years to rebuild.
After a data loss incident, banks usually face a drop in customer confidence. This is exacerbated by the fact that customers expect their banks to be end-all-be-all of security and reliability. Additionally, regulatory bodies such as the GDPR and the CCPA enforce stringent penalties for data loss, further emphasizing the need for airtight DLP measures.
Essential DLP Solutions for Banking Compliance
Implementing a robust DLP framework requires an arsenal of specialized tools. These DLP solutions are designed to work cohesively to ensure comprehensive protection against data loss.
Sender Policy Framework (SPF)
SPF is an email authentication protocol that detects and prevents email spoofing, a common tactic used by cybercriminals to initiate data loss incidents. When combined with DMARC and DKIM, SPF forms part of a trifecta that helps secure email communication in the banking realm.
Endpoint Threat Protection Software
Endpoint protection is critical, considering the varied entry points for cyber threats. By deploying endpoint security DLP solutions, banks can secure the ‘last line of defense’—the devices that directly interact with sensitive financial data.
Email DLP
Email DLP solutions furnish banks with policy-driven detection of potentially sensitive data, enabling the institution to block certain attachments, enforce encryption, and monitor the content of outgoing emails for compliance.
Multi-Factor Authentication (MFA)
MFA adds an extra layer of security, mitigating the risks associated with password compromises. In banking, MFA is indispensable for web-based applications and email access, where unauthorized entry could lead to significant data incidents.
Additional DLP Solutions to Consider
Further tools include outbound email encryption, encrypted secure wireless communications, and advanced firewalls with intrusion detection and prevention systems (IDPS) to stave off unauthorized network access and data exfiltration.
Best Practices and Internal Policies for DLP in Banking
Beyond tools and technologies, a solid DLP strategy hinges on well-crafted internal policies and adherence to best practices.
Role-Based Access Controls (RBAC)
RBAC ensures that employees have access only to the information required for their specific job role. This minimizes the risk of data leaks that can occur when individuals have more privileges than necessary.
Clean Desk Policies
Physical security must complement digital safeguards. Clean desk policies require employees to stow away sensitive hard copies and safeguard other physical mediums that could potentially compromise data security.
Regular Security Awareness Training
Continuous education is key to maintaining a vigilant workforce. Regular training should be provided to update staff on emerging threats and to ingrain security protocols as second nature.
Getting Started with DLP in Your Banking Institution
Are you ready to put DLP solutions in place? Here’s a roadmap to launch your DLP initiative:
Perform a Comprehensive Data Audit
Before you can protect your data, you need to know what you’re protecting. Conduct a thorough audit to identify all sensitive data and understand how it is used and shared within your organization.
Prioritize Data Classification
Not all data is created equal. Classify your data according to its importance and level of sensitivity. This will guide your DLP policies by helping you focus on protecting your most critical assets.
Choose the Right DLP Solutions
Select DLP solutions that align with the unique needs and compliance requirements of your bank. Whether it’s email encryption, activity monitoring, or endpoint protection, invest in technologies that provide the granular control you need.
Implement and Test
Once you have your tools in place, it’s time to implement your DLP solutions. Test the effectiveness of your policies by simulating data loss scenarios and ensuring your systems respond as intended.
Monitor, Review, and Adjust
DLP is not a set-it-and-forget-it proposition. Continuously monitor your systems, review security logs, and adjust your policies as needed to keep pace with the evolving threat landscape.
RESULTS Technology Can Help Protect Your Data
Your bank deserves banking IT experts that can help you feel confident in your data loss prevention efforts. RESULTS Technology understands the unique security challenges facing financial institutions and offers a suite of customized IT solutions to help protect your sensitive data. Schedule a free risk assessment today to learn more about our DLP services for banking and finance.
