Data Privacy and Security in The Financial Industry: What You Need to Know
Introduction
All of us are increasingly sharing financial information when we are engaging with different entities. We are sharing them with our banks, lending bodies, insurance companies as well as for shopping.
One of the major issues affecting the world today is Data Privacy and Security. Hackers are looking to exploit our confidential information shared with the above-mentioned entities. This is why it is necessary to ensure that data breaches, financial fraud, and identity theft issues are protected at all costs.
In this article, we are going to look at some important aspects related to data privacy in the financial industry. We are also going to shed some light on how advanced technology can help us overcome this problem.
What kind of Data are we sharing on an everyday basis?
When was the last time you paused to think about adding your card details to an e-commerce platform? The answer to that question would be a very long time back!
This is how commonplace it has become for us to share sensitive and important information with vendors. Do you know some of the sensitive data, which we share on a daily basis? Let us list some of them below:
- Name
- Address
- Phone Numbers
- Email ID
- Social Security Number
- Loan Account Number
- Net Banking Data
- Digital Wallet Information
- Credit and Debit Card Details
At a glance, this might not seem much, but to a hacker, this is sometimes all they need to create mischief. While most companies are eager for us to share their data with them for improved customer experience, they sometimes do not pay the same level of attention to security.
What are some tools Hackers use to perpetrate Financial Fraud and Data Breaches?
One thing that needs to be pointed out is that the majority of hackers do not go for big data breaches. In other words, they are more likely to target a small e-commerce startup than an Amazon for financial fraud and leaks.
The answer is simple- smaller firms and businesses are less likely to invest in secure firewalls and anti-hacking software than bigger firms are. The average person sitting at home is far more susceptible to a data privacy issue that a software engineer working at Google.
This has to do with the information available to the average person, as against someone who is familiar with the issue. Hackers predominantly use the following major types of attacks:
- Ransomware attacks
- Malware Attacks
- Phishing Emails
- DDoS Attacks
Hackers can lock you out of your system, and demand money for providing you with a password key. Alternatively, they can remotely access your system and create mischief. They can also send you emails with phishing links to hack your system.
How Blockchain Technology can be an answer to the problem
If you are aware of Bitcoins, you might probably be aware of Blockchain technology. Blockchain is the technology, which runs Bitcoin. It was first presented to the world in 2007-08. In the last twelve-odd years, the technology has not been hacked!
The immutable nature of the software, the validation points, and the open-source nature has made it impossible to break. Some of the biggest financial and commercial companies in the world are investing in Blockchain technology to help them secure their transactions.
The Bitcoin cryptocurrency network runs on Blockchain. This makes it the world’s most secure and private economic network currently in the world. Even trading platforms, which use powerful trading algorithms, run on Blockchain technology. This makes transactions secure, private, and anonymous in nature. For bitcoin trading, you can visit real website
Conclusion
While experts peg the number of losses from data breaches to cross the $1 Trillion mark in 2020, there is not a lot, which they are doing. Blockchain technology can be a fast, effective, concrete, and affordable solution to the problem. Data privacy is going to be the number one priority for companies, governments, and consumers in the following years to come.