Financial institution security plays a vital role behind the success of financial institutions.
For running their business operations, the financial institutions have to deal with various types of information, which are both internal and external in nature. These include financial data, customer data, information related to operations data, sales and marketing data, logistics data, and various other types of data. If these data are not maintained properly and there is divulgence of information, the business is surely going to face serious problems, which may put the company’s future at stake.
Data privacy is of primary importance to every financial institution. Usually, the financial institution faces two kinds of security threats and they are identity threats and access threats.
It is the principal responsibility of the financial institutions to supervise the accessibility to vital data and ensure that no financial fraud is committed with the help of fraudulent measures or misrepresentation.
For safeguarding their data, the financial institutions often take the assistance of various data protection consultancy firms, which provide state-of-the-art data protection tools and technologies. These tools have been designed by implementation of sophisticated softwares that are difficult to imitate. These tools offer password protection facilities so that there is no unwanted access.
The Federal Trade Commission (FTC) in the United States has delineated the Safeguards Rule, according to which the financial institutions falling under the jurisdiction of the Federal Trade Commission have to take steps for keeping customer information protected.
The Gramm-Leach-Bliley Act was passed by the United States Congress in the year 1999. The principal objective behind the passing of the act is to ensure safety and privacy of customer information for the companies that are defined as financial institutions according to law.
Last Updated on : 27th June 2013