Security of data and smart investments go hand in hand to ensure business safety and establish trust between the business and its customers. It’s tempting to cut down on cybersecurity investment during times of economic uncertainty. But prevention is better than cure and it’s more economical to prevent the occurrence of an incident than paying for cleanup and recovery.
Although banks with investment accounts typically have sophisticated security strategies with firewalls and anti-virus software, it’s important to keep in mind that an effective cybersecurity strategy requires more than just tools like those. It also requires best practices such as limiting access to sensitive data to those who need it, encryption and authentication. Furthermore, it is essential that financial institutions recognize the importance of investing in the human firewall, as nearly 90% of data breaches result from employee error.
As well as avoiding potential cyberattacks Investment banks can boost their security measures by implementing technologies such as blockchain. This technology improves security by encrypting the information in transit and at rest, rendering it unreadable to unauthorized users. Additionally, it permits companies to monitor and secure their assets, helping them avoid data loss and other severe consequences.
Many financial institutions are still struggling with the risk that sensitive data about customers or investors could be lost. Employees are at risk of losing sensitive data when they use their laptops or other devices out of the office, attend meetings outside of the office or work from home. Investment banks are able to apply their privacy policies to data regardless of whether the device is connected to a corporate network or WiFi network, a public one, home WiFi, or connected at all.