Is my Financial Data Secure? 

In today’s digital world, much of our financial information is stored online. While technology can make managing our finances more accessible and more effective, it also increases the danger of financial fraud and identity theft.

That is why it is critical to make efforts to ensure your own financial security. Over the last few decades, financial technology has driven numerous advancements and changes, including wire transfers, credit or debit cards, and online banking. 

Banks have had to improve their systems to handle these developments and reform their operations to ensure long-term security when introducing new technology. Nowadays, it is also critical to protect sensitive information and establish security measures to prevent fraudsters from launching assaults such as phishing and malware attempts. Financial data security refers to the technology, policies, processes, and physical measures to protect sensitive financial information. 

Financial data security measures include safeguards for hardware, software, networks, storage devices, and user devices and authentication, access, and administration controls. Financial data security aims to protect information from unwanted access, corruption, and theft throughout its life cycle.

The rise of advanced technologies has resulted in an upsurge in scams targeting all groups. Protecting your identity, financial well-being, and privacy is critical in the face of these dangers. Here are some things you may do to protect your financial information better while also gaining a significant piece of mind.

• Understand the Importance of Accounting Data Security

Understanding the fundamental relevance of accounting data security is essential before delving into particular defensive techniques. Data security is critical in the financial services business since data is a highly valued asset, including sensitive information.

As a result, for accounting firms, addressing data security extends beyond regulatory compliance; it is about protecting their clients and safeguarding their business. Adhering to data security best practices in accounting software and systems, assuring secure cloud-based accounting software, and keeping computers physically secure are all critical components of a solid financial data protection strategy in the financial services business.

• Never click on suspicious emails.

Many fraudsters use phishing emails to obtain personal information or put malware on potential victims’ PCs. If you receive an email that appears strange, it usually is. Resist the desire to click on any links, and never submit personal information by email.

If you receive an email about your finances that appears to be from your bank, the IRS, or another organization, call the toll-free number for that institution (the one listed on the company’s website, not the phone number in the suspicious email) to confirm its authenticity before taking any action.

• Implement role-based access

One of the most important steps in establishing internal business controls is granting role-based access. Role-based access involves giving employees only the access they need, depending on their roles.

For example, if there is a set of shared files, an analyst will only be able to view the information required by their function. Cloud-based solutions simplify setting up and maintaining rights in a large enterprise.

 

• Keeping your software up to date

Keeping your software up to date is necessary and should never be overlooked, even though some employees may ignore this rule imposed by software developers.  Failure to update your software exposes your network to an increased risk of vulnerabilities caused by obsolete code. Hackers can exploit these vulnerabilities to compromise the integrity of your system. As a result, maintaining a safe environment requires regular software updates.

• Use Two-factor Authentication

When accessing online accounts related to financial or banking activity, two-factor authentication requires you to enter a code received via phone or email in addition to your password. Even if someone else obtains your login information, they cannot enter without the second factor (code/authorization access).

• Regular Backups and Secure Storage

Backing up data is a key step in preventing data loss caused by system failures, cyberattacks, or other disasters.Data should be backed up regularly and securely, whether offsite or in the cloud. Cloud storage services frequently feature decisive security measures like encryption and secure data centers. However, it is critical to select suppliers with a proven track record of data security.

Whether you’re safeguarding yourself or your small business, knowing more about cyber security and financial protection will keep you safer. At Advats, we understand the importance of securing your personal data. If you want to learn more about how we protect your accounts and financial information, please get in touch with us.