This week, sweeping new regulation went into effect in the European Union. Consumers and financial institutions here in the U.S. felt the effects of the General Data Protection Regulation (GDPR) as inboxes were flooded with updated privacy statements – reminding us all that our thinking and practices around data security and privacy are still formative.
Here are five new developments in the world of data security and privacy:
GDPR Brings Benefits, Burdens and Intricate Challenges
Let the reckoning begin. This week GDPR went into effect, a legislation aimed at standardizing how organizations handle the personal data of EU residents, regardless of where it is processed – including the United States. While supporters and consumers applauded the new rules, businesses were critical of the additional layers of complexity, cost and resources associated with complying with GDPR.
Banking Orgs Come Up Short Against Internal Threats
Financial institutions are investing heavily in cybersecurity to combat external attacks, but what about internal threats? Testers from enterprise security firm Positive Technologies successfully obtained access to financial applications 58 percent of the time when they were given access to internal networks.
The One Area Where FIs Want More Regulation
Although fintechs and financial institutions are generally opposed to regulation, they do agree on the need for consensus on how consumer data should be handled and who should be responsible when data is compromised. Particularly as open APIs and data aggregators continue to become more widespread, many feel the need for regulators to develop a set of data sharing standards.
Cybersecurity Still Keeps Bank Execs Up at Night
Banks lost over $16.8 billion to fraudsters last year. A global study among 400 bank executives conducted in March found that 71 percent of execs are focusing the bulk of their digital investments on cybersecurity.
Banks Take Military Approach to Cybersecurity
Inspired by the centers created by the Department of Homeland Security after September 11, Mastercard is launching a new “fusion center” to coordinate intelligence on cybercrime and cybersecurity. Fundamentally, threat networks are “not that different from terrorists and drug cartels,” says Matthew Nyman of Mastercard.
Cybersecurity and data integrity are constant and ever-evolving challenges for credit unions. Learn best practices for protecting your data at our next FraudBuzz Webinar on June 21: