Financial data breach uncertainties remain a concern

Recent security research has revealed that financial data breach uncertainties remain a concern, with worrying figures in 2017 over breaches and protection.

It’s thought that as many as 70% of financial organisations may have suffered a data breach, with many simply unable to confirm for definite whether they have or haven’t, and whether the breach was related to an unauthorised third-party access event.

The growth of open banking is said to be a huge factor as financial organisations no longer have a closed door on their systems and servers with customers being able to access and manage their finances online.

Financial data breach woes

The thought of a financial data breach is as scary for the financial organisations as it is for the customers in some respects. As great as open banking is, with apps and access to move money and manage finances wherever, whenever, the risks of abuse from third party threat actors is a massive concern.

Third party access remains one of the biggest concerns in the financial sector, and with around 70% of firms potentially suffering breaches in 2017, the figure for IT professionals who are not comfortable that they can do enough is also at the same amount: 70%.

Worrying statistics.

Reliance on outsourcing can increase financial data breach events

Many financial organisations will rely on outsourced companies to manage their IT infrastructure, including for open banking, and this in itself can leave people more vulnerable to suffering a financial data breach.

It’s generally accepted that the more organisations and people you have involved in the process of a business – i.e. the more outsourced companies and employees you rely on – the greater the risks can be. There are simply more potential doors for a threat actor to get through if something goes wrong.

Claiming compensation for a financial data breach

Victims of a financial data breach can be entitled to claim for data breach compensation. You can claim damages for not just the actual financial losses that may be caused, but also for the distress and worry that a data breach will often cause.

In a world where financial data breach incidents are a constant worry, people should know that they have a legal avenue for compensation in the event something does happen.

 

 

IMPORTANT: advice on this page is intended to be up-to-date for the 'first published date'.

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