Most companies conducting business today prioritize the security of their financial data as a primary concern. Safeguarding financial data is crucial due to its sensitivity and adherence to international standards.
Financial data protection applies to all organizations that handle customer payments regardless of the industry they operate in. This requirement extends to the healthcare and insurance sectors, as well as financial services and e-commerce websites.
Failure to protect data leaves organizations vulnerable to severe penalties, potentially impacting their business continuity. Whether we are talking about crypto security or safeguarding digital assets, privacy is a key aspect that both users and businesses pay attention to.
How to Protect Financial Data?
#1 Data Backup
Using data backup is crucial for safeguarding financial data. While it cannot prevent cyberattacks, it ensures quick recovery. It is recommended to have three system copies on two different media, with one stored off-site or in the cloud.
Remember, not all data loss is caused by malicious acts. Innocent mistakes, such as accidental file deletion, can be equally devastating without a backup.
Data disasters can result from various causes, such as bad CSV files, incompatible third-party software, or unpatched systems. Data backup software provides an additional layer of protection and reduces anxiety by allowing access to secure file copies for restoration when needed.
#2 Use Cryptocurrency
Blockchain allows you to make transactions in any direction, but they can be tracked. But with an adequate asset management strategy, no one will know who owns the wallet. Everyone sees only his address. One of the crypto wallet protection tools is VPN crypto. If you use a VPN for crypto trading, you can trade anonymously on exchanges and send funds between different wallets. For secure crypto trading, you also need a reliable VPN for traffic encryption reasons. VeePN provides 256-bit encryption that is virtually unbreakable. This means that your data is safe even while being sent somewhere.
#3 Strong Passwords
Financial data breaches often occur due to compromised credentials, which remains a prevalent cause. In a study conducted by Verizon, it was found that 61% of breaches were a result of unauthorized individuals gaining access to employee accounts.
Common culprits include phishing attacks, weak passwords, and shared computers utilized by employees who have transitioned to remote work. However, these issues can be mitigated. Implementing best practices such as two-factor authentication (2FA) or utilizing a single sign-on solution like 1Password can effectively decrease the likelihood of unauthorized access.
#4 Train Staff
Nowadays, hackers no longer bother wasting their time trying to hack into systems. Instead, they opt for quicker and easier methods, such as exploiting phishing emails or tricking employees into clicking on malicious links from within.
To safeguard your company’s security, it is crucial to establish a comprehensive security policy that clearly outlines the responsibilities of all personnel. Consider incentivizing employees to become champions of data security and actively enforce and promote security policies. You can write in your security policy that when connecting to the company’s servers, they always use free VeePN and this will protect against hacking. Make it a priority to regularly update your policy to address emerging threats, and provide periodic training upgrades to reinforce the importance of adhering to these policies.
Businesses can effectively safeguard their sensitive financial data by utilizing tokenization. Similar to masking, tokenization involves substituting sensitive data with a unique and random token that holds no inherent value or meaning. This token serves to represent the original data within secure systems and processes, while the actual data remains stored in a separate, highly secure environment.
For instance, a business may employ tokenization to replace a customer’s credit card number with a token capable of processing future transactions. Consequently, the credit card number remains unrecorded in the business’s systems or databases, significantly reducing the risk of data breaches or unauthorized access.
Businesses can safeguard their sensitive financial data by employing encryption. It entails converting data into an exclusive code that necessitates a corresponding key or password for decryption. This measure serves as a robust deterrent against unauthorized access or theft, as the encrypted data holds no meaning without the requisite key or password.
For instance, businesses may adopt encryption to safeguard customer credit card information during storage or transmission. The credit card number undergoes encryption and can only be deciphered using the secure key or password, which is held by the business.
Encryption boasts several advantages over alternative data protection methods. Unlike masking or tokenization, which rely on substitutes to shield sensitive data, encryption offers heightened security by scrambling the data itself. Subsequently, this makes it notably challenging for hackers or unauthorized users to infiltrate or pilfer the data.
The protection of financial data must be at a high level in every company, otherwise, it will undermine its credibility. It will be very difficult to restore it since the precedent has great power. Many clients leave and never come back. Whether it’s traditional digital assets or cryptocurrencies, privacy is the top priority.