Financial Data Protection Strategies

Ignoring cybersecurity just cost a major bank $250M in a single breach. Here's the harsh reality about cyber risk in finance: Implement continuous monitoring systems that detect suspicious activities in real-time, flagging unusual transactions and access patterns before they escalate into major security incidents. Deploy multi-layered authentication protocols across all financial systems, combining biometrics, hardware tokens, and behavioral analytics to create an impenetrable defense against unauthorized access. Establish automated backup systems that maintain encrypted copies of critical financial data, ensuring business continuity even if primary systems are compromised by ransomware or malicious attacks. Create dedicated incident response teams trained specifically for financial cyber threats, capable of containing breaches within minutes instead of hours and minimizing potential losses. Integrate AI-powered threat intelligence tools that predict and prevent emerging cyber threats, analyzing global attack patterns to strengthen financial security measures before vulnerabilities are exposed. Protection isn't expensive. Recovery is.

For companies that have strict data locality and compliance requirements, the ability to secure PII during data replication is crucial. A few ways that companies can handle PII effectively when it comes to data replication: 1️⃣ Column Exclusion: safeguard sensitive information by excluding specific columns from replication entirely, ensuring that they do not appear in the data warehouse or lake for downstream consumption. 2️⃣ Column Allowlist: utilize an allowlist to ensure only non-sensitive, pre-approved columns are replicated, minimizing the risk of exposing sensitive data. 3️⃣ Column Hashing: obfuscating sensitive PII into a hashed format, maintaining privacy while allowing for activity tracking and data analysis without actual data exposure. 4️⃣ Column Encryption: encrypt PII before replication to ensure that data is secure both in transit and at rest, accessible only via decryption keys. 5️⃣ Audit Trails: implement comprehensive logging to track changes to replicated data, which is essential for monitoring, compliance, and security investigations. 6️⃣ Geofencing: control data replication based on geographic boundaries to comply with laws like GDPR, which restricts cross-border data transfers. By integrating these strategies, companies can comply with strict data protection regulations and enhance their reputation by demonstrating a commitment to data security. 🔒 One of our customers is a B2C fintech platform. They use Artie (YC S23) to replicate customer and transaction data across platforms to analyze and monitor changes in risk scores. To ensure compliance with financial regulations and safeguard customer data, the company uses column hashing for sensitive financial details and customer identifiers. This way, they are able to identify important PII changes without exposing sensitive data to their analysts. Additionally, they implemented audit trails (our history mode/SCD tables!) to monitor and log all data changes. Geofencing is utilized to restrict data processing to specific regions, to remain compliant with regulations like GDPR. How is your organization managing PII in data replication? Are there other strategies you find effective? #dataengineering #datareplication #data

India's financial sector is a powerhouse driving economic growth. However, a report by RBI raises a concerning trend: a surge in cyberattacks targeting these institutions. With over 13 lakh attacks reported last year, it's clear that robust defenses and proactive management of cyber risks are critical. So, what makes Indian banks vulnerable? ❗ Rapid technological adoption: While embracing innovation is great, the rush to implement new technologies, like cloud computing, can create security gaps in traditional systems. ❗Increased attack sophistication: Cybercriminals are constantly evolving. Gone are the days of simple denial-of-service attacks. Today's threats involve sophisticated ransomware, exploiting software vulnerabilities and even AI-powered attacks. ❗Interconnectedness: Banks rely heavily on third-party vendors and APIs. These connections can become weak points if not properly secured. How can finance companies build stronger defenses? 1. Have Multi-Layered Security Approach 2. Have Continuous Threat Intelligence 3. Conduct Security Awareness Training 4. Secure the Supply Chain 5. Invest in Advanced Solutions 6. Integrate Security by Design 7. Implement Risk Management Framework 8. Board Level Engagement Boardroom Involvement Matters. Why? Effective cybersecurity starts at the top. Boards of directors play a crucial role in setting the strategic direction for cyber risk management. Their active involvement is essential for, 🔵 Understanding Cyber Threats: Boards need to be educated on the evolving cyber threat landscape, including the potential impact on the institution's financial stability and reputation. 🔵 Allocating Resources: Cybersecurity requires ongoing investment. Boards need to approve adequate budgets for security technologies, employee training and incident response plans. 🔵 Oversight and Accountability: Boards should establish clear expectations for cybersecurity performance and hold management accountable for implementing effective controls. For finance professionals, building cybersecurity skills is no longer optional. Here are a few ways to stay ahead of the curve, ✅ Take online courses or attend workshops: Numerous resources are available to learn about cyber threats and best practices. ✅ Stay informed on the latest attack trends: Subscribe to cybersecurity news and reports to stay vigilant. ✅ Practice good cyber hygiene: Use strong passwords, be cautious with email attachments and report suspicious activity immediately. Security is a shared responsibility. By working together, financial institutions, professionals and regulators can create a more secure financial ecosystem for everyone. #bfsi #cybersecurity #cyberawareness #securitymatters #cyberattacks

IT General Controls (ITGC) Checklist Financial data's accuracy and reliability depend on the robustness of systems and data controls. These controls may fall under the jurisdiction of IT. However, ensuring these controls are implemented and monitored should be the paramount priority of the finance leaders. Specifically, the head of accounting must work closely with the head of IT to ensure the security of systems and data. Security, reliability, and accuracy of financial data is your responsibility. You need to take charge of the process. Please review this checklist with your IT department to ensure your financial data is secure and reliable. This is what you need to ensure: 1- Access Controls - the accounting system is capable of role-based controls. 2- Change Management - system changes are logged, monitored, and reviewed. 3- Backup & Recovery - disaster recovery policies and processes are in place to backup and restore data. 4- Incident Management - security breach incidents are monitored and addressed promptly. 5- Network Security - intrusions are detected and dealt with without losing or impacting financial data. 6- Data Privacy - sensitive data is encrypted in transit and stored. 7- Monitoring & Logging - the logging mechanism is implemented and reviewed to detect security incidents. 8- Vendor Management - when contracting with vendors for cloud-based services, ensure they comply with the company's internal security protocol. 9- Compliance & Audit - third-party monitoring and assurance are paramount to ensuring a regular review of the controls. Abdul Khaliq

𝐒𝐚𝐟𝐞𝐠𝐮𝐚𝐫𝐝𝐢𝐧𝐠 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐃𝐚𝐭𝐚: 𝐀 𝐂𝐅𝐎’𝐬 𝐈𝐦𝐩𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐢𝐧 𝟐𝟎𝟐𝟒 Cybersecurity breaches pose a growing threat to financial operations, with 43% of organizations reporting increased cyber incidents in 2024, according to KPMG. CFOs must prioritize robust security measures to protect sensitive financial data and ensure operational integrity. Implementing advanced encryption, multi-factor authentication, and regular security audits can mitigate these risks. In fact, firms investing in comprehensive cybersecurity strategies have seen a 30% reduction in data breach incidents. Investors should be aware that strong cybersecurity practices are not just a compliance necessity but a strategic advantage. By ensuring your financial systems are secure, you enhance operational resilience and safeguard investor interests. Consider integrating enhanced cybersecurity measures into your investment strategy to safeguard assets and build trust in a secure financial environment.

𝐄𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐃𝐚𝐭𝐚 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐢𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬: 𝐁𝐞𝐬𝐭 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬 𝐟𝐨𝐫 𝐒𝐮𝐜𝐜𝐞𝐬𝐬 The financial sector is data-driven. But without strong governance, data can become a liability instead of an asset. Here’s how financial institutions can modernize databases for efficiency, security & compliance: 1️⃣ 𝐄𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡 𝐂𝐥𝐞𝐚𝐫 𝐃𝐚𝐭𝐚 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 → Define who’s responsible for data accuracy & security. → Avoid inconsistencies that lead to compliance risks. 2️⃣ 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭 𝐑𝐞𝐚𝐥-𝐓𝐢𝐦𝐞 𝐌𝐨𝐧𝐢𝐭𝐨𝐫𝐢𝐧𝐠 → Detect anomalies before they become major issues. → Proactive security = fewer breaches. 3️⃣ 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐞 𝐃𝐚𝐭𝐚 𝐂𝐥𝐚𝐬𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 → Reduce manual work & human errors. → Faster access to critical information. 4️⃣ 𝐄𝐧𝐬𝐮𝐫𝐞 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 → Keep up with ever-changing laws like GDPR & CCPA. → Avoid hefty fines & reputational damage. 5️⃣ 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞 𝐀𝐈 𝐟𝐨𝐫 𝐒𝐦𝐚𝐫𝐭𝐞𝐫 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 → AI-driven insights enhance risk management. → Better decision-making, reduced fraud. Real-World Impact A global bank automated data governance policies—reducing compliance costs by 40% while boosting efficiency! What strategies does your company use for data governance? Drop your thoughts below! #𝐃𝐚𝐭𝐚𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 #𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 #𝐀𝐈 #𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 #𝐑𝐢𝐬𝐤𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 #𝐃𝐚𝐭𝐚𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 #𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐨𝐧 #𝐂𝐥𝐨𝐮𝐝𝐂𝐨𝐦𝐩𝐮𝐭𝐢𝐧𝐠 #𝐁𝐚𝐧𝐤𝐢𝐧𝐠𝐓𝐞𝐜𝐡 #𝐅𝐢𝐧𝐓𝐞𝐜𝐡