Data privacy is a critical issue that affects individuals and organisations alike. With the increasing amount of personal information being shared online, the need to protect this data has never been greater. In this article, we will explore the importance of data privacy and the steps that can be taken to safeguard personal information.
One of the main reasons why data privacy is important is that personal information can be used for nefarious purposes. Hackers and cybercriminals can use this information to commit identity theft, financial fraud, and other crimes. This can have a devastating impact on individuals, leaving them with ruined credit scores, empty bank accounts, and other financial problems. Additionally, personal information can be used to create fake social media accounts, impersonate someone, and engage in other types of online harassment.
Fortunately, some steps can be taken to protect personal information and safeguard data privacy. One of the most effective ways to do this is to use strong passwords and two-factor authentication. This makes it much more difficult for hackers and cybercriminals to gain access to personal information. Additionally, it is important to be cautious when sharing personal information online and to be mindful of the types of data that are being shared.
The significance of data privacy
Data privacy refers to who has access to customer information given to institutions with which they have a business connection. Bank employees require specific information to authenticate the identities of persons who access a client’s account. Certain client data is required for financial advisors to enter into a transaction on behalf of customers who have an account with them. Employees in another department inside a bank or financial institution may require this information as well.
Vishak Raman, Vice President of Sales, India, SAARC and southeast Asia at Fortinet.
“A total of 5.07 billion people around the world use the internet today, as internet users continue to grow there is still education and work to be done in the realm of data protection. How data is created, shared, processed, and stored today, or the volume of personal data that exists for virtually every human being on earth, there simply cannot be any data privacy without good data security.
The goal of Data Privacy Day is twofold – every user should understand that they have the right and power to protect and manage their personal data, while organisations understand why it is important to protect and safeguard their customers’ data and Personally Identifiable Information (PII).
Data Privacy Day is a reminder to every organisation that accesses personal data to evaluate its IT security infrastructure. IT security solutions should be able to effectively communicate, regardless of where they have been deployed, to optimally protect data and provide network-wide visibility. The network must also include sophisticated data protection measures such as threat prevention and detection, pseudonymisation of PII, and internal segmentation to isolate attacks and track customer data.
Every organisation must have a documented and tested data breach response plan to be prepared for existing data privacy regulations or others on the near horizon.”
Data privacy & banking:
Data privacy is a critical issue for the banking and financial industry. With the growing use of digital platforms for banking and financial transactions, personal information is becoming increasingly vulnerable to cyber threats. On Data Privacy Day, it is important to take a closer look at the importance of data privacy in the banking and financial sector, and the steps that can be taken to safeguard personal information.
One of the main reasons why data privacy is so important in the banking and financial sector is that this industry handles sensitive personal information, such as bank account numbers, credit card details, and other financial data. If this information falls into the wrong hands, it can be used to commit financial fraud and identity theft. This can have a devastating impact on individuals and organisations alike, leaving them with ruined credit scores, empty bank accounts, and other financial problems.
According to Accenture and the Ponemon Institute’s report “Unlocking the Value of Improved Cybersecurity Protection,” the cost of cyberattacks is highest in the banking industry, hitting $18.3 million per organisation annually.
Another reason why data privacy is so important in the banking and financial sector is that this industry is a prime target for cybercriminals. Hackers and cybercriminals are always looking for ways to gain access to personal information, and the banking and financial sector is a rich source of valuable data. This is why it is essential for banks and financial institutions to take data privacy seriously and put in place robust security measures to protect personal information.
Fortunately, there are steps that can be taken to protect personal information and safeguard data privacy in the banking and financial sector. One of the most important steps is to use encryption when storing and sharing personal information. Encryption is a technique that can be used to scramble data in a way that makes it unreadable to anyone without the key. This means that even if someone does manage to gain access to personal information, they will not be able to read it.
Another important step is to use multi-factor authentication when logging into online banking and financial platforms. Multi-factor authentication is a security measure that requires users to provide more than one form of identification, such as a password and a fingerprint or a password and a security token. This makes it much more difficult for hackers and cybercriminals to gain access to personal information.
In addition to these steps, banks and financial institutions should also be aware of the various laws and regulations that are in place to protect data privacy. For example, the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the United States are two examples of laws that are designed to protect personal information and give individuals more control over how their data is used.
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In conclusion, data privacy is a critical issue for the banking and financial sector. With the growing use of digital platforms for banking and financial transactions, personal information is becoming increasingly vulnerable to cyber threats. By using encryption, multi-factor authentication and being aware of relevant laws and regulations, banks and financial institutions can help safeguard personal information and protect their customers’ data privacy.
Preekshit Gupta, Vice President – APAC & MEA, Bureau.id, stated “As we accelerate towards a digital economy, there’s been a rise in data theft and leaks. If recent breaches have shown us anything, it’s that the fallout for organisations can be far greater than just legal consequences. There is a need for robust data privacy regulations and laws that protect both individuals and organisations.
‘Data Privacy Day’ is a reminder that data privacy is a fundamental right, and companies must take all necessary steps to ensure the safety of customers’ data. With the emergence and growing usage of new-age technologies like artificial intelligence and machine learning, organisations can use them to detect and prevent data breaches, identify fraudulent behavior and protect user privacy. Machine learning algorithms can process large volumes of data to identify potential threats and protect user data. The recent draft of the data protection laws released by the government also placed significant penalties for any company breaching the regulations. Data security is the cornerstone of online financial transactions, and the rise of cybercrime makes it a priority for companies across sectors, especially digital lending and e-commerce, to ensure that their customers’ personal information remains safe. The Reserve Bank of India has showcased concerns around the digital lending space and has also issued clarifications on digital lending, reiterating the need to protect borrowers’ data lenders.
While traditional data protection laws such as the Information Technology Act and the Personal Data Protection Bill provide a basic framework for data privacy, it is also essential that companies also invest heavily in data security and data privacy infrastructure to safeguard their customers.”
Balaji Rao, Area Vice President, India & SAARC, Commvault, stated that, “Data privacy has always been a hot topic, but in today’s world of data sprawl, data security threats, and increasing data regulations, the stakes have never been higher. Bad actors, human error, ransomware and other security threats pose risks to data every minute of every day, while a more stringent regulatory environment is forcing organisations to enforce compliance – or risk fines. As data continues to increase in volume and sprawl across applications and storage, following evolving regulatory norms is becoming increasingly complicated.
One of the primary challenges with data privacy is an enterprise’s assumption on ‘how ready are they!”. While most companies have data protection strategies, they are often legacy solutions that must be modernised to fit today’s threat landscape. A recent IDC-Commvault study revealed that 71 per cent of Indian organisations, data backup/data recovery is the number one priority for cloud investments for the next two years. But without investing in sufficient budgets to bring in new-age data protection solutions, organisations would fail to attain a future-ready state. The premise of ‘work anywhere, anytime’ has further increased the threat landscape and the potential entry points for an attacker to access files. Companies must implement an effective data protection solution to manage the data sprawl, with multi-layered protection and multiple tests to deny unauthorised access and ensure fast recovery.
Although we are moving in the right direction, a lot still needs to be addressed. Implementing a more comprehensive Intelligent Data Management platform will enable IT and security leaders to look across their entire ecosystem and identify data sources, and simplify data organisation, regardless of where it is located and how it is managed.”
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