Exploring the Challenges of Data Security in Banking

December 21st, 2023 by imdad No comments »

Data security in banking faces several challenges, including commercial surveillance, data breaches, data biases, and privacy concerns. Here are some key points to consider:

Commercial Surveillance and Data Security:

The Federal Trade Commission (FTC) is exploring rules to crack down on harmful commercial surveillance and lax data security in response to the heightened risks and stakes of data breaches, deception, manipulation, and other abuses associated with mass surveillance .

Data Biases and Privacy Concerns:

The use of large nontraditional and unstructured data sets in central banking for analytics could expose central banks to data biases and raise concerns about data privacy and security .
Traditional banks are under pressure to adapt to new technologies while ensuring that potential data breaches or other security issues do not compromise their reputation .

Regulatory Measures and Compliance:

The European Union Agency for Cybersecurity (ENISA) has published a report on data protection engineering to help assess the most relevant techniques for processing operations and address the impact on privacy and data protection .
The European Union has enacted new legislation, such as the Digital Operational Resilience Act (DORA), to harmonize and tighten information technology (IT) security rules in the financial sector, extending the powers of financial services supervisory authorities to critical ICT service providers .

Technological Complexity and Distributed Environments:

Robust data security strategies are essential to protect organizations’ information assets against cybercriminal activities, insider threats, and human error, especially in today’s complex, distributed, hybrid, and/or multicloud computing environments .