7 Secure File Sharing Capabilities That Financial Services Firms Need to Consider
The security of sensitive content associated with financial services is a paramount concern for businesses. Unauthorized access to financial data can lead to significant financial losses and reputational damage. Risk of data breaches and cyberattacks is constant, regardless of industry, and financial services are especially vulnerable. To protect sensitive content, financial services must implement secure file sharing protocols and comply with security certifications and audits.
Financial services companies are required to comply with data protections laws, such as the Payment Card Industry Data Security Standard (PCI DSS), and must protect large amounts of customer data, making it essential to employ reliable secure file sharing technology and processes.
This blog post provides an overview of secure file sharing, the importance of security certifications and audits, and how financial services can use secure file sharing to protect their data.
What Is Secure File Sharing?
Secure file sharing is the process of safely and securely exchanging files over a network or the internet. This includes sharing information internally between individuals, or externally with outside parties, such as customers and vendors. With secure file sharing, you can protect sensitive and confidential data by encrypting files and controlling who has access to them.
Why Secure File Sharing Is Important for Financial Services
Secure file sharing is essential for financial services, as it helps protect sensitive customer data. With secure file sharing, financial services organizations can ensure the confidentiality and integrity of customer data by controlling who has access to the data and by encrypting the data when it is sent over the internet.
Secure file sharing also makes sharing files easier and more efficient. Organizations can use secure file sharing to quickly and easily share documents and information with customers, vendors, and other stakeholders. This helps to streamline processes and reduce the time required to share documents.
Finally, secure file sharing helps organizations comply with industry regulations and standards. Regulations such as the PCI DSS require financial services to protect customer data and ensure it is not shared inappropriately. Other data privacy regulations like the Health Insurance Portability and Accountability Act (HIPAA), General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), Personal Information Protection and Electronic Documents Act (PIPEDA), and numerous others also affect financial services. By using secure file sharing, organizations can ensure that customer data is always kept secure.
Types of Sensitive Information That Financial Institutions Handle
Financial services handle sensitive customer information on a daily basis. This includes personally identifiable information (PII), financial account information, and other confidential data. Additionally, financial institutions often handle sensitive internal communications and documents, such as strategic plans and product development documents, that must be kept confidential. All of this data must be securely stored and shared in order to prevent unauthorized access.
Risks Associated With Insecure File Sharing in Financial Services
Financial services are integral to the global economy, and the data they manage is often highly sensitive and confidential. File sharing networks and services used by financial institutions must be secure in order to protect this sensitive information. Unfortunately, the use of insecure file sharing can open financial services up to a variety of risks.
Consequences of Data Breaches in Financial Services
Data breaches can have serious consequences in the financial sector. For instance, a data breach can lead to the theft of customer accounts, the exposure of confidential documents, and significant financial losses for the company. Additionally, data breaches can damage the reputation of a financial institution and cause customers to lose trust in the institution, leading to a decline in business.
Legal and Regulatory Compliance
Financial services must adhere to a variety of legal and regulatory requirements. A data breach can lead to severe fines and penalties, and may even result in criminal prosecution of the organization. As such, it is essential for financial services to properly secure all of their file sharing networks and services in order to remain compliant with applicable laws and regulations.
Best Practices for Secure File Sharing in Financial Services
Financial services organizations must ensure that their sensitive data is secure and protected at all times. Secure file sharing is a key component in the effort to protect their data from cyberattacks. In this blog, we will discuss some of the best practices that organizations should consider when implementing secure file sharing in financial services. Following are six ways financial organizations can ensure their file sharing and collaboration is secure and remains in compliance with various regulations:
1. Use of Encryption for File Sharing
Encryption is one of the most secure methods of protecting data. With encryption, data is transformed before it is transmitted, making it unreadable to anyone who is not authorized to view it. This can be done through encrypting the data itself or with key-based encryption, where an access key is used to decrypt the data. The use of the best end-to-end encryption options ensures that only authorized users have access to the data.
2. Implementing Secure Access Controls for File Sharing
Organizations should also consider implementing secure access controls. This can include setting user roles, requiring two-factor authentication, and setting up a whitelist of IP addresses that are allowed to access the data. By using a combination of access controls, organizations can ensure that only authorized personnel can view the sensitive data.
3. Multi-factor Authentication for File Sharing
Multi-factor authentication helps to ensure that only authorized users can gain access to the data. This can be done through a combination of authentication factors, such as passwords, PINs, biometric scans, or the use of physical tokens. By using multiple authentication factors, organizations can reduce the likelihood of unauthorized access.
4. Logging and Monitoring for File Sharing
Organizations should also consider implementing logging and monitoring systems. These systems should be used to detect any suspicious or unauthorized activities related to the file sharing system. Logging and monitoring can also be used to identify any weak points in the file sharing process that may need to be addressed.
5. Implementing a Zero-trust Approach for File Sharing
Organizations should also consider implementing a zero-trust approach to secure file sharing. This approach involves always requiring authentication for access to the data, regardless of whether the user is known or unknown. This helps ensure that all requests for access are thoroughly evaluated and any unauthorized requests are rejected.
6. Conducting Periodic Security Audits for File Sharing
Finally, organizations should consider conducting periodic security audits to ensure that their file sharing system is secure. These audits can help identify any potential threats and determine if any security measures need to be implemented or updated. By regularly conducting security audits, organizations can ensure that their file sharing system is secure and their sensitive data is kept safe.
Choosing a Secure File Sharing Solution
When selecting a secure file sharing solution, it is important to consider the features of the solution in comparison with other available solutions in the market. Companies and organizations in the financial services industry must take extra precautions when handling and securing sensitive and confidential data. A secure file sharing solution ensures that data is reliably transferred, stored, and accessed with the highest level of security.
Factors to Consider When Selecting a Secure File Sharing Solution
When selecting a secure file sharing solution, there are seven key factors that should be considered.
1. Security of File Sharing
The first factor is the level of security provided by the solution. The solution should be able to offer the highest level of authentication, encryption, and digital rights management (DRM). Additionally, the solution should provide a way to remotely manage and control access to files in order to maintain data integrity.
2. Integration of File Sharing With Existing Systems
The second factor to consider is the ease of use and integration with existing systems. The solution should be easy to use and should integrate seamlessly with existing systems. The solution should allow files to be easily uploaded, shared, and accessed from any device.
3. Scalability of File Sharing Solution
The third factor to consider is the scalability offered by the solution. The solution should be able to scale up or down quickly and easily without compromising security or performance. Additionally, the solution should allow for the addition or deletion of users in an efficient manner.
4. Customer Support From File Sharing Provider
The fourth factor to consider is the customer support provided by the solution. The solution should provide prompt and reliable customer service. Additionally, the support should be knowledgeable and able to answer questions quickly and effectively.
5. Integration of File Sharing With Other Content Communication Channels
The fifth factor to consider is the integration of file sharing with other content communication channels. Ideally, you want to be able to track and control file and email data communication from one console. This also includes the ability to generate consolidated reporting and audit logs.
6. Apply Granular Risk Policy Tracking and Control
The sixth factor organizations need to consider when evaluating file sharing options is policy management. They need to be able to track and control file and folder access, who can edit files, and on what devices and locations files can be accessed and edited. This also includes the ability to generate detailed audit logs used for demonstrating adherence with various regulations and standards—from security to data privacy.
7. Comprehensive Security Layers Secure File Sharing
Not every file sharing solution is secure, and cybercriminals can use various methods to exploit vulnerabilities and security deficiencies. A secure file sharing solution needs to use security layering built on a hardened virtual appliance that minimizes vulnerability exploits and impact severity.
Kiteworks Secure File Sharing Capability for Financial Services
In today’s fast-paced, global business landscape, organizations rely heavily on consultants, vendors, suppliers, and other trusted partners to drive growth and achieve success. Collaborating securely with these third parties is of paramount importance, particularly in the face of increasingly stringent data privacy regulations and standards. This is where the Kiteworks Private Content Network comes in, offering secure file sharing capabilities that empower organizations to collaborate efficiently, securely, and in compliance with all relevant regulations.
Kiteworks’ secure file sharing solution serves as a centralized platform where organizations can easily set, enforce, monitor, and record user access to files. This includes tracking file uploads and downloads, as well as managing file sharing permissions. Granular access controls, multi-factor authentication, encryption, and seamless integration with your organization’s data loss prevention (DLP), advanced threat protection (ATP), and security information and event management (SIEM) solutions ensure that sensitive information remains protected at all times. Additionally, the platform’s robust activity monitoring capabilities help mitigate potential risks and maintain security. Kiteworks is enveloped in a hardened virtual appliance that provides layers of security that dramatically improves security while minimizing risks.
But it’s not just about security. Kiteworks also enables organizations to collaborate more efficiently. Project teams can share files of any size or type, and folders and files are easily accessed from any location or device, including browsers, mobile devices, and enterprise apps. The platform makes it simple to create folders, invite members, and automatically expire folders once projects are completed. Plus, folder managers can monitor when files are downloaded, ensuring projects stay on track.
By offering a secure and efficient platform for collaboration, the Kiteworks Private Content Network, including its secure file sharing capability, helps organizations reduce risk, cut costs, and drive better business outcomes. Its secure file sharing capability is an invaluable asset for any organization looking to safeguard sensitive information while enabling seamless, secure collaboration with third parties.
Schedule a custom-tailored demo to see Kiteworks’ secure file sharing capabilities for financial services today.
Additional Resources
- Blog Post Best Secure File Sharing Use Cases Across Industries
- Blog Post Secure File Sharing Encryption: How to Keep Your Data Safe and Secure
- Brief Optimize File Sharing Governance, Compliance, and Content Protection
- Blog Post Best Secure File Sharing Solutions for Enterprises
- Case Study Seyfarth Shaw: Serving Clients Better through Secure Mobile File Sharing