Electronic Vaulting: How Financial Companies Can Reap the Benefits and Avoid Risks?

Electronic vaulting has become the most prevalent thing in the financial sector and other industries alike. The clouds and other local electronic devices now carry the bulk of data for many banks. Additionally, at the touch of a button, banks can retrieve data and even make statements useful for the future running of the businesses. The growing dependence on digital services including storage, also means that the benefits of the technology will still be apparent in the future.

Financial firms have done well when it comes to the protection of sensitive data. From 2015-16, they accounted for only 6% of all data breaches done. From the mentioned figures, firms, especially banks, are benefitting from electronic vaulting. However, as much as electronic vaulting for finance leaders comes with many benefits, security risks make some groups in the financial sector hesitant.

In the wake of these wins, in keeping data safe, bosses from the top financial institutions still hold that data breaches in the cloud backup systems are one of their most significant concerns. Some of them are hesitant to adopt the technology to incorporate more data. Most managers highlighted their concerns on compliance problems, data governance, confidentiality and data loss. Hackers and other third parties have increased their appetite for finding new ways to access data. Currently, many measures are in place to identify the risks of sending a large amount of data electronically.

Steps That Can Help Financial Institutions Keep Electronic Vaulting Safe

  1.    Following The Rules Laid Out For Data Transfer

Financial institutions have rules governing data handling that stem from the EU, ISO, and PCI-DSS. The standards set for data protection can help the firms stay within the law, avoiding further action whenever an outsider accesses data from electronic vaulting. Firms can also have disaster recovery tools that help arrange the data transferred during the vaulting process in an easily accessible manner to help in times of emergencies. Other steps that the firms can take include the following:

  •         Encrypting the data before transfer
  •         Laying down procedure on the transfer of data
  •         Complying with the rules for data handling and storage laid out by local and international authorities
  •     Having a surveillance system in place to monitor the data transferred every passing minute
  •         Protecting all the access points easily accessible by hackers

Entry points refer to the areas outsiders can use to access the electronic vaulting process. Protecting such critical areas requires surveillance of those vulnerable parts frequently to catch the hackers whenever they want to have access. The best tools to deal with such areas include:

  •         Having a deep packet inspection in place
  •         Malware blocking
  •         Putting up sophisticated devices for managing hacks
  •         Investing in effective antivirus software
  1.    Putting A Perimeter In The Weak Areas Which Hackers Can Access.

The lack of equipment to protect electronic vaulting is the reason for most attacks. Therefore, having a managed firewall or up-to-date systems that can detect any breach is key to stopping outsiders from breaching data. Additionally, having people watch over the vaulting process around the clock makes the data easy to recover whenever hackers try to take control of it from a remote place.

  1.   Having A Working Recovery Of Systems Of The Data Involved

Electronic vaulting guarantees the exchange of the most critical data, with big financial firms also having data for some of the biggest organizations. Hackers accessing critical information can lead to significant losses. Additionally, ransomware can also wreak havoc and lock the financial firm out of its data. In many cases, financial firms have only one option when they lose their data: to pay a ransom. Doing so exposes other firms to the same attacks, with future attacks also on the table for the attacked firm.

Therefore, the best way to safeguard against such is by using recovery tools, which have a copy of all the data transferred. Financial firms must create backups of their entire cloud systems or make sure that third-party storage services offer backup as an option.

Electronic vaulting has many benefits and risks. Firms must have frequent checks on the security situation of their vaulting process to make sure hackers have no access, as the price for data breaches can include a lot of money.

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