CIS608 - Week1 - Data breaches and its impact on Financial Industry

Data Breach is a serious concern across the globe. This is the new epidemic in the modern era. Especially in the developed and developing nations. Data breach is a costly affair. It crippling effects on financial institutions and individuals.

If data breach happens out of a financial institution, that will cause a huge impact on that organization in short and long terms.

Few examples -

• Loss of reputation
• Drop in the share value and market capitalization
• Investors lose confidence in the organization
• Employees lose trust in the leadership and their direction
• More employee attrition rates
• Becomes a victim to get acquired or forced out of the business
• Chances are more get penalized from Government regulatory commisions.

Preventive measures to avoid data breaches

- Need to invest in learning new ways data breaches and preventing techniques.
- Businesses should be aware of security patches released by software vendors, and they should be up to date on the patches. Otherwise, these lapses pose serious threats to applications and its data.
- Multi-level firewall protection.
- Alarm system, in case of intrusions or suspicious activities.
- Mock drills and safety checks periodically, to make sure all the controls in place.
- Multi-level verification system to authenticate each transaction, if something is unusual.
- Stringent authentication methods to authenticate cash transfers.

References:

THE CAUSES AND COSTS OF DATA BREACHES IN THE FINANCIAL INDUSTRY. Retrieved from Champion solutions group: https://www.championsg.com/causes-costs-data-breaches-financial-industry

Ellen Zhang (2017, Oct 10). THE TOP 10 FINSERV DATA BREACHES. Retrieved from Digital Guardian: https://digitalguardian.com/blog/top-10-finserv-data-breaches