Numerous mandatory cybersecurity measures have been put in place as a result of the growing number of cyberattacks that affect the financial industry. Regulatory compliance is among the most efficient methods for holding financial services responsible for their nation’s security. In this article, we learn the importance of cybersecurity regulations and its top 08 ways. Keep reading to learn everything about it.
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1. Create an Official Security Framework
Best practices in five essential areas of data security are covered by the National Institute of Standards and Technology (NIST) Cybersecurity Framework:
For the architecture to be used effectively, the actions in the identified function constitute the cornerstone.
The capacity to reduce or contain the effects of a potential cybersecurity event is supported by the protect function.
The detect functionality allows prompt identification of cybersecurity incidents by creating and putting into place necessary activities.
The response function helps the capacity to contain the impact by creating and putting into place suitable activities.
The role of recovery promotes the prompt return to normal operations by planning and implementing necessary activities.
The European Union created the European General Data Protection Regulation (EU-GDPR) as a security architecture to safeguard its citizens against unauthorized access to their personal information.
The GDPR applies to any companies that manually or automatically process information relating to EU individuals.
Following Brexit, the UK is no longer associated with any European regulations, as well as the European GDPR. The United Kingdom General Data Protection Regulation, a localized counterpart of the EU-GDPR, was created as a result (UK-GDPR).
That being said, the UK is still subject to the UK-GDPR because it has been preserved in domestic law.
In other terms, the UK-GDPR maintains the EU-GDPR laws; they have simply undergone minor revisions to account for specific sections of UK domestic legislation. All in all, they offer financial stability by defending organizations against cybersecurity attacks.
4. 27001, ISO/IEC
A widely accepted guideline for lowering potential risks and safeguarding computer systems is ISO/IEC 27001.
The ISO/IEC 27001 standard is made up of a collection of policies and procedures that give businesses in any sector advice on how to strengthen their security posture. Most nations do not require ISO 27001 compliance. For the financial services industry, it is strongly advised due to the framework’s superior security for sensitive information.
The International Organization for Standardization (ISO), a global organization that oversees national standards organizations, is represented in the United States by the National Institute of Standards and Technology (NIST).
NIST, much like ISO, has publications 800-53 and a variety of standards and procedures, addressing cybersecurity compliance.
To safeguard shareholders from fraudulent activity, the US Congress approved the Sarbanes-Oxley (SOX) act of 2002.
Through such a set of internal controls, the SOX framework provides optimal security practices for preventing fraudulent financial activities.
In recent years, SOX has developed into more than merely a system for assuring the correctness of financial records.
7. PCI DSS
The security measures outlined in this legislation are intended to protect the three key phases of the lifecycle of customer information:
Merchants and payment technology solutions alike must adhere to PCI DSS to process credit card data for customers.
The purpose of the Bank Secrecy Act (BSA), also called the Currency and Foreign Transactions Reporting Act is to prevent financial institutions from intentionally laundering money or forcibly doing so as a result of a cyberattack. So, it protects the digital banking functions of organizations.
Financial institutions are obligated by the BSA to cooperate with the US government in the battle against financial fraud.
These are the top 08 cybersecurity regulations for financial services. These frameworks offer protection services to varying financial organizations.