Finance companies work with data every day. In fact, they hold a lot of sensitive information about people and businesses. They keep records of bank account details, social security numbers, and even their customers’ personal data. 

All of this information is valuable, and it is why hackers target them. These hackers try to get into a company’s system and steal this data. A data breach can cause a lot of problems for both the company and its customers. From identity theft to even outright fraud, there are so many issues finance companies have to prevent.

Therefore, it is very important for finance companies to have strong measures in place to protect this information. 

6 Ways to Prevent Data Breaches

Data breaches are not exactly new to the business world. Over the years, there have been quite a few incidents. Finance firms are at risk of data breaches because of the potential for fraud and abuse. So keeping hackers out of your system is crucial. 

Here, we will look at six simple ways finance companies can prevent a data breach.

Monitor for Suspicious Activity

Finance companies are meant to have a system in place to monitor their networks. So, if there is any unusual activity, it can help them catch a data breach early. There are many tools available that can monitor your company’s data. They will quickly alert you if your data is being accessed or if someone is trying to log in from an unusual location. With a hedge fund cybersecurity solution, they can detect it before too much damage is done. 

Use Strong Passwords

Another way they can protect their data is to use strong passwords. It is better to use a strong password, especially one that is long and has a mix of letters, numbers, and special characters. Your password should not be something that is easy to guess.

It is important that employees change their passwords regularly. Also, they should not use the same password for different accounts. The company can even use tools that manage passwords to help their employees create and store strong passwords.

Keep Software Up to Date

If your systems are old and not updated, it will be easy for hackers to get in. Most of the time, software companies release updates when they fix a problem with their software. If your company does not update its software, it will leave the door open for hackers. 

Hence, it is important that finance companies make sure all their software is up-to-date. They can set up automatic updates so they don’t miss anything.

Besides updating the software, companies may also need a total overhaul of outdated hardware. There’s only so much software can fix. If the hardware is outdated, it may not meet international standards. This may incur a cost, but the cost is cheaper than the result of a hack. 

Train Employees

Even before your systems, your employees are the first line of defense against data breaches. So you need to train them on what to look out for. This way, they can know what to do if they see something suspicious. Ensure that your company has regular training sessions for employees. 

Let them know how to recognize phishing emails and other common hacking attempts. They should also know the importance of keeping their work environment secure. Employees should learn how to lock their computers when they are away from their desks.

These trainings should be organized randomly and regularly to ensure that employees are properly sensitized. As technology advances, they need to be up to date with the new ways cyber thieves employ to steal information.

Use Encryption

When data is encrypted, even if a hacker manages to steal it, they will not be able to read it. Encryption makes sure that the data is unreadable to anyone who does not have the right key to view it. Hence, finance companies should use encryption for all sensitive data. They can encrypt data regardless of where it is stored or sent to. 

A good cybersecurity solution provides top notch encryption services to put both the financial business and their customers at ease. 

Outsource cybersecurity 

While having an in house cybersecurity team is a good thing, it may not necessarily keep your business safe from hackers. The reason is simple. Hackers work every day to come up with new technologies to gain access to company systems. In house cybersecurity teams get trained but may not have up to date training to keep hackers at bay. 

On the other hand, when you outsource your cybersecurity team, you’ll work with seasoned professionals who constantly update their knowledge. They can work around the clock to keep finance systems safe and reduce operational risk. This kind of middle office outsourcing service is cheaper in the long run compared to the cost of getting hacked. 

Final thoughts 

It is important to have a good cyber security protocol in place to keep data safe. Companies hold the trust of their customers and a data breach destroys that trust. Not to mention the loss on the company’s part. Finance companies can protect themselves and their customers from the serious consequences of data breaches. However, they need a good monitoring system to ensure that there isn’t any breach. Everyone in the company has a role to play in keeping information safe. From training staff to outsourcing the cybersecurity team, finance companies can