Financial data and systems are prime targets for hackers. Threat actors motivated by financial interests are always looking for weak and vulnerable systems to breach.
As of December 2022, finance and insurance organizations globally experienced 566 breaches, leading to over 254 million leaked records.
Since 2022, 422 million people worldwide have been impacted by cybercrime. Not all breaches resulted in financial loss, but criminals are not interested in your family photos. (Source: Identity Theft Resource Center)
In an era of rising data breaches and cyber threats are on the rise, safe-guarding both company and personal financial information has become crucial. Here are some essential strategies to ensure your financial data remains secure.
Implement Strong Password Policies
Passwords are the first line of defense against unauthorized access. Ensure all passwords are complex, at least 12 characters long, and combine uppercase letters, lowercase letters, numbers, and special characters. Avoid using easily guessable passwords like "123456" or "password."
Best Practices:
Use different passwords for different accounts: Avoid using the same password across multiple platforms to minimize risk if one account is compromised.
Enable multi-factor authentication (MFA): MFA is generally the best practice for protecting financial data. It requires two or more verification factors, such as a password, a security token, and biometric data, to access a resource. MFA is best used to protect sensitive data.
Change passwords: The National Institute of Standards and Technology (NIST) recommends password changes when a known compromise has occurred or every 365 days.
Ensure your online communications are encrypted
To safeguard your online transactions, you must keep your browser safe and secure at all times. Always check for a “lock” icon on your browser’s status bar before sending personal financial information. The lock indicates that the website is secure for communicating over the internet.
Educate Employees and Family Members
Human error is one of the leading causes of data breaches. Educating employees and family members about the importance of data security and best practices can significantly reduce risks.
Training Topics:
Recognizing phishing emails and scams: Teach them to identify suspicious emails and avoid clicking on unknown links or attachments.
Properly disposing of sensitive documents: Use shredders for paper documents and secure deletion tools for digital files.
Safe internet browsing habits: Encourage using secure websites and warn against downloading software from untrusted sources.
Use Secure Networks
Public Wi-Fi networks can be hotspots for cyberattacks. Always use a secure, private network when accessing or transmitting financial data.
Recommendations
Use Virtual Private Networks (VPNs) to encrypt internet connections.
Avoid accessing sensitive information when on public Wi-Fi.
Monitor Financial Accounts
Regular monitoring of financial accounts can help detect suspicious activity early. Set up alerts for unusual transactions to respond promptly to potential breaches.
Monitoring Tools:
Use bank-provided alert services.
Limit Access to Sensitive Data
Only some people in a company or household need access to all financial information. Implement role-based access controls to limit data exposure.
Access Control Measures:
Assign permissions based on job and need roles.
Regularly review and update access controls.
Conclusion
Protecting company and personal financial data is a continuous process that requires vigilance, education, and robust security measures. By following these best practices, you can significantly reduce the risk of data breaches and ensure your sensitive information remains secure!
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