# How Financial Organisations can Stay Protected from Financial Data Breaches 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-07
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Why Financial Organisations Must Prioritise Email Security
Meta Description: Discover why email security is crucial for financial organisations to avoid costly data breaches and maintain reputation. Learn more from Andrea Babbs, VIPRE
URL: https://financedigest.com/how-financial-organisations-can-stay-protected-from-financial-data-breacheshtml

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_By_ **_Andrea Babbs,_** _UK General Manager, VIPRE_

Email is a crucial function of business communication, which many organisations strongly rely upon. But as the pandemic brought a new world of remote and hybrid working, it’s arguably more important than ever to [keep both individuals and organisations](https://www.financedigest.com/auditing-in-cyber-how-organisations-can-keep-track-of-their-data.html "AUDITING IN CYBER: HOW ORGANISATIONS CAN KEEP TRACK OF THEIR DATA") connected – wherever they may be. A staggering [333.2 billion](https://earthweb.com/how-many-emails-are-sent-per-day/) emails are sent and received daily – but in turn, it’s inevitable that typos can occur or the wrong attachments are sent to the wrong person. However, whilst innocent mistakes can happen, the consequences could be much more devastating.

The consequences of [sending an incorrect email within the financial](https://www.financedigest.com/how-big-data-is-sending-shockwaves-through-the-financial-services-sector.html "How big data is sending shockwaves through the financial services sector") industry, in particular, could be drastic – both in terms of a firm’s reputation and legal penalties. Within an industry that deals with sensitive and valuable information, it’s vital that [financial organisations prioritise keeping their confidential data secure](https://www.financedigest.com/post-brexit-uk-workers-can-have-financial-security.html "Post Brexit – UK workers CAN have financial security"), explains Andrea Babbs, UK General Manager, VIPRE.

**At What Cost?**

IBM’s latest [Data Breach Report](https://www.ibm.com/security/data-breach) revealed that 2021 had the highest average data breach costs in seventeen years, rising from $3.86 million in 2020 to $4.24 million. Particularly within the financial services industry, [research](https://thefintechtimes.com/wipro-why-are-financial-services-a-prime-target-for-cybercrime/#:~:text=Cybercrime%20is%20more%20prevalent%20in,makes%20them%20a%20tempting%20target.) indicates that cybercrime is more prevalent in this sector compared to any other. Both external and insider breaches are equally as dangerous, but human errors are almost [twice as likely](https://www.theaccountant-online.com/comment/commentsdata-breach-safeguarding-financial-services-8440281/) to result in data disclosure.

For example, if human errors occur in the [financial services when sending internal](https://www.financedigest.com/the-financial-sector-must-act-to-tackle-internal-data-security.html "THE FINANCIAL SECTOR MUST ACT TO TACKLE INTERNAL DATA SECURITY") emails, such as including the wrong individuals in CC, or attaching the wrong document, this can cause serious issues as it may be perceived as ‘Insider Trading.’ If two departments are working for two directly competitive clients, and accidentally share non-public, material information about one another, this could put either team and/or client at an unfair advantage by having this insight.

Depending on the size of the [breach will determine the size of the cost](https://www.financedigest.com/check-please-adding-up-the-costs-of-a-financial-data-breach.html "Check, Please! Adding up the Costs of a Financial Data Breach"). However, at a minimum, there will be penalties. Not only could there be a financial loss for the organisation, but companies will have to pay for audits to understand what happened, and what protocols need to be put in place to [prevent further attacks](https://www.financedigest.com/preventing-an-operationally-crippling-ransomware-attack-do-you-know-where-your-risk-exposure-lies.html "PREVENTING AN OPERATIONALLY CRIPPLING RANSOMWARE ATTACK –  DO YOU KNOW WHERE YOUR RISK EXPOSURE LIES?"), as well as compensating customers who were affected by the breach.

Additionally, the aftermath of a [data breach is far worse than just financial](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") loss. [Businesses in the finance](https://www.financedigest.com/1-in-3-uk-businesses-looking-for-finance-are-finding-it-harder-to-get-a-loan.html "1 in 3 UK businesses looking for finance are finding it harder to get a loan") sector have reputations to uphold in order to preserve a loyal customer base, especially in such a demanding and competitive market. Yet, failing to [protect sensitive customer](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") information can result in negative press, which can, in turn, make existing and potential customers apprehensive about an organisation. This can potentially result in them taking their business, and money, elsewhere.

**Strategy Checklist**

A layered cybersecurity strategy is key in any industry in order to mitigate cyber threats and [keep sensitive information secure](https://www.financedigest.com/the-challenge-of-keeping-data-secure-why-in-house-security-isnt-enough.html "The challenge of keeping data secure: why in-house security isn’t enough"). However, within the [financial sector](https://www.financedigest.com/overcoming-information-overload-in-the-financial-sector.html "OVERCOMING INFORMATION OVERLOAD IN THE FINANCIAL SECTOR"), it’s more important than ever as the stakes are much higher. When considering a cybersecurity strategy, three components should be considered:

1. **Encryption and Authentication:** Security protocols are [designed to prevent a majority](https://www.financedigest.com/keysource-awarded-major-contract-to-design-nationwide-network-of-data-centres-throughout-china.html "KEYSOURCE AWARDED MAJOR CONTRACT TO DESIGN  NATIONWIDE NETWORK OF DATA CENTRES THROUGHOUT CHINA") of instances of unauthorised interception, email spoofing and content modification. When a hacker is attempting to infiltrate a company, they may try to intercept emails via transport [links or attack](https://www.financedigest.com/protecting-against-man-in-the-middle-attacks-with-dynamic-linking.html "Protecting against man in the middle attacks with dynamic linking") systems directly. Whilst encryption services do not [protect businesses](https://www.financedigest.com/finalised-pan-european-data-protection-laws-set-the-new-standard-for-a-privacy-friendly-business-environment.html "Finalised Pan-European data protection laws set the new standard for a ‘privacy-friendly’ business environment") against human error, including them in your email security strategy will help to protect companies from hackers intercepting emails.
2. **Training and Guidelines:** It is essential that businesses put in place strong [security rules and guidelines concerning the movement and storage of sensitive financial](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security") information. This should also provide clear guidance on the steps employees should take if a security incident occurs.

Additionally, when employees first join an organisation, they should take part in [cyber security](https://www.financedigest.com/5-ways-to-protect-your-company-from-cyber-security-threats.html "5 Ways to Protect Your Company From Cyber Security Threats") awareness training. However, this should be an ongoing programme to ensure that all employees understand the role they play in [keeping their organisation safe](https://www.financedigest.com/five-ways-to-keep-your-personal-data-safe-from-hackers.html "Five ways to keep your personal data safe from hackers"). As part of this training, automated phishing simulations should be included to demonstrate how these threats can appear in order for the user to identify them, and act appropriately. Following this training, key metrics and [reports can be provided on how the users](https://www.financedigest.com/cma-report-looks-to-interventions-to-help-overdraft-users.html "CMA REPORT LOOKS TO INTERVENTIONS TO HELP OVERDRAFT USERS") are improving, or where more education is needed.

By fortifying [key security](https://www.financedigest.com/2023-fintech-prediction-secure-and-private-data-usage-is-key.html "2023 FinTech Prediction: Secure and Private Data Usage is Key") messages across the workplace, combined with simulated phishing attacks, continuous training ensures that individuals are able to identify potential attacks, whilst providing them with the necessary skills to handle the risks.

3. **DLP (Data Loss Prevention):** It is crucial for businesses, especially [financial firms](https://www.financedigest.com/turning-a-blind-eye-wont-work-for-financial-firms-as-the-fca-tightens-its-grip.html "TURNING A BLIND EYE WON’T WORK FOR FINANCIAL FIRMS AS THE FCA TIGHTENS ITS GRIP"), to deploy security measures for the detection and prevention of potential email threats, both internally and externally. Humans play a key role in deciding what is safe to send, and what is not – but DLP solutions can [support this process by providing](https://www.financedigest.com/keysource-to-provide-critical-facilitiesmanagement-support-for-leeds-city-council.html "KEYSOURCE TO PROVIDE CRITICAL FACILITIESMANAGEMENT SUPPORT FOR LEEDS CITY COUNCIL") the necessary alerts. For example, colleagues [exchanging confidential documents across different areas of the business](https://www.financedigest.com/small-business-strategies-for-foreign-exchange.html "Small business strategies for foreign exchange") means that the CC fields are likely to have multiple recipients in them. An incorrect email address is likely to be overlooked without a tool in place to highlight this error to the user, and instead, [provides them with the opportunity](https://www.financedigest.com/can-covid-19-provide-opportunities-to-change-stakeholder-relationships-for-good.html "Can Covid-19 provide opportunities to change stakeholder relationships for good?") to double-check the accuracy of the email recipients and attachments.  Supporting staff with a crucial second chance helps to raise awareness and understanding of existing email threats, and provides that essential security lock-step – before it’s too late.

**Conclusion**

Email will remain an essential platform for communication, but will continue to be a high-risk tool for [businesses and employees](https://www.financedigest.com/why-investing-in-employee-health-can-be-good-for-business.html "Why investing in employee health can be good for business") to communicate both internally and externally. And, particularly for [financial service](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") organisations, as they remain a prime target for cyber hackers given the temptation to access personal information and financial transactions. Therefore, the [finance industry](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") must prioritise cyber security and invest in a layered approach, which must include security awareness training and data loss prevention tools, in order to minimise human error and provide the strongest possible defence in the modern security landscape.


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