IT Security in Financial Services: Ensuring Compliance and Long-Term Protection

Your financial services firm requires IT help just like any other organization. The most significant distinction, however, is the level of protection necessary for client data gathering and storage. As a result, social security numbers, financial data, and other sensitive information are stored on your network and must be well protected.

Company-Enforced and Government-Regulated IT Security

The extra requirements for IT security are twofold.

The first security need involves company-enforced IT standards, whereas the second is government-regulated. All financial services firms must follow certain federal requirements to remain compliant and protect client information. These laws then serve as the foundation for security in your firm.

You and your IT provider will talk about IT security best practices and how to implement company standards, in addition to (and beyond) the government-regulated standards. The only way to protect your sensitive data and systems against an attack is to implement a layered security approach that includes several safeguards.

A substantial component of regulatory compliance is concerned with the security and processing of gathered information. Keeping strong control over what data each person has access to helps a corporation reduce risk. To reduce the risk of breaches, financial services firms, for instance, must make sure that only authorized individuals have access to particular client data.

One effective way to enhance data protection is through Multi-Factor Authentication (MFA) which considerably lowers the chance of unwanted access by introducing an additional layer of protection. Users must confirm their identification with a temporary code delivered to them via email, a smartphone app, or a fob after entering their password. Without the code, the attacker cannot access the account, even if the password is obtained.

It is also critical to protect data while it moves from one location to another. This can be accomplished by encrypting data before it leaves your network or server. Partnering with an IT service provider ensures that data encryption is properly configured and continuously monitored.

Auditing for Security and Compliance

Many financial services firms typically seek assistance from an outsourced IT service provider due to security concerns.

The following is a common scenario:

Suppose a financial services firm, "X," requires a security scan or audit to meet compliance standards. The primary goal is to ensure their network and data remain secure by identifying and addressing any security flaws, including vulnerabilities in their hardware and applications.

To achieve this, the managed IT service provider plays a crucial role. To find any vulnerabilities in the business's network, the supplier will carry out a comprehensive penetration test. The IT service provider will develop a thorough plan to address and mitigate the security issues after these vulnerabilities have been found.

In addition to resolving immediate issues, a long-term strategy is developed by financial services firms in collaboration with the IT service provider. This plan focuses on preventing the recurrence of critical IT challenges by implementing regular security measures. Weekly and monthly processes will be established to ensure that vulnerabilities are continuously addressed. This proactive approach eliminates the need to repeatedly fix the same issues year after year, fostering a robust and secure IT environment for the firm.

Final Words

In conclusion, financial services firms must adopt a comprehensive, layered security approach to protect sensitive client data. By implementing both company-enforced and government-regulated IT standards, utilizing tools like Multi-Factor Authentication, and ensuring ongoing encryption and auditing, firms can maintain strong security. Partnering with an IT service provider ensures long-term protection against evolving threats.