Financial Crime World

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Financial Institutions Face Major Data Security Breach as Customer Information Systems Attacked

A recent attack on customer data systems has left many financial institutions scrambling to assess their risk profiles and ensure compliance with regulatory requirements.

Regulatory Requirements

The California Consumer Privacy Act (CCPA) requires companies to give consumers certain rights regarding their personal information, including the right to know what information is collected, used, shared, and sold. The General Data Protection Regulation (GDPR) in the EU goes even further, providing individuals with greater protection and rights regarding their data.

Implementing Robust Security Measures

Financial institutions are also required to implement robust security measures to protect customer data. This includes:

  • Encryption: making it more difficult for cybercriminals to steal sensitive information
  • Firewalls and Web Gateways: installed and maintained to prevent unauthorized access to payment systems
  • Intrusion Detection Systems (IDS): critical in detecting and preventing intrusions into the network
  • Logging and Data Collection: essential for incident response and reporting

Compliance Requirements

Financial institutions must also comply with various regulations, including:

  • Gramm-Leach-Bliley Act (GLBA): requires financial institutions to maintain the confidentiality, integrity, and availability of customer information
  • Payment Card Industry Data Security Standard (PCI DSS): sets strict guidelines for protecting cardholder data

Outsourcing Compliance Management

In light of these regulations, it’s no surprise that many financial institutions are turning to third-party security operations experts to help them centralize compliance management and optimize threat detection and response. By doing so, they can reduce the risk of costly and time- consuming breaches, while also ensuring that customer information remains secure.

Enhancing Security at Your Organization

For more information on how to enhance security at your organization, download our comprehensive Financial Industry Cybersecurity Checklist.