Amid growing concerns around cybersecurity regulations in the financial services industry, it looks like change may be on the horizon. With a new initiative in order, New York is leading the charge in developing stronger data protection guidelines for banks.
According to ZDNet, the New York State Department of Financial Services is set to release the official guidelines in 2016, and the anticipated announcement is already beginning to make waves. In an industry that deals with such critically sensitive data, a renewed focus on regulating the storage, management, and protection of that data is very refreshing. Plus, if they are successful, they may even be rolled out country-wide.
Cybersecurity risk in the financial services industry is extremely concentrated, so a strong focus on threat prevention is definitely warranted, and has the potential to yield great rewards.
Our recent research shows that nearly half of the data being created in the cloud can be attributed to just 1% of users in financial institutions. This tiny subset of users is also responsible for 80% of organization-wide data exposures and a whopping 99% of public exposures. Honing in on these users, and implementing stricter regulations could have a huge impact.
Rumored predictions for the newly heightened security guidelines include mandates around:
- Regularly enforced audits both on a quarterly and annual basis to reveal and assess an organization’s vulnerability to cyberthreats
- Required use of multi-factor authentication
- Stringent policies governing the management of third-party service providers and data breaches
- Compulsory encryption of sensitive data
- Newly strengthened hiring profile for qualified CISOs
Many of the new focus areas closely mirror the core business challenges CloudLock customers seek to solve in adopting cloud security technologies. Across all industries, customers leverage CloudLock’s cloud cybersecurity solutions to:
- Detect account compromises quickly
- Surface cloud-native malware
- Find and selectively encrypt sensitive data to prevent data breaches
- Satisfy compliance mandates, and
- Implement scrutinous security audits
To find out how your organization can best address these concerns, get a free cloud security assessment here.
While we await final word on exactly how and when the new guidelines will take shape, this news is clearly a step in the right direction when it comes to addressing the growing inevitability of data breaches in today’s day and age. In the meantime, it will be interesting to see what steps banks across the nation take in order to prepare for the possibility of change.
The State of Cybersecurity in Financial Services
Download our cybersecurity report for a deep dive into cybersecurity risks and practices across eight distinct industries, including financial services. Check out where your industry stands in the cybersecurity landscape, and get insight into the concerns of your peers and competitors.