Customers trust banks with everything a hacker needs to steal an identity: birthdates, Social Security numbers, account numbers, and more. It’s no wonder then that banks must provide advanced security to protect this data. This includes cloud storage security and backup systems.
In 2023 alone, the cost of cybercrime will reach $8 trillion. Since banks store a lot of private information, the finance industry has consistently ranked as a top target.
Instead of trusting your customers’ data to vulnerable, physical servers, it’s essential to use cloud storage and backup systems that are designed specifically with banks in mind. Here is everything you need to know about cloud storage security for your bank.
Should Banks Be Using Cloud Storage?
Storing all your customers’ data in one physical server on or offsite is dangerous. One disaster (manmade or natural) could wipe out all that data, and you won’t be able to recover it. That’s why many banks are turning to cloud-based solutions for their storage and backups.
When it comes to financial institutions or any other regulated industry, they have specific regulations that they need to comply with. This includes using the cloud. Your bank needs a cloud storage solution that is tailored to your industry.
Cloud storage that is specific to financial institutions provides a safe, reliable repository for your banks’ data that can be accessed from anywhere in the world with internet access. By taking advantage of real-time backups and quick disaster recovery solutions, banks can keep up with the changing demands of their customers while maintaining the highest levels of security.
However, cloud storage is not foolproof when it comes to security. The average bank might be using multiple cloud services, such as email, OneDrive, DocuSign, or Google Drive. To access that information, a hacker does not have to get past your institution’s security—they only have to hack the vendor’s security.
If they can get ahold of your DocuSign password, they will have control over every piece of sensitive and valuable information hosted there. To combat this, banks should not use any web application that hosts sensitive data without enabling MFA (multi-factor authentication). MFA allows you to stop login attempts that aren’t authorized so even if someone gets your password, they’re blocked from logging in.
Banks should also perform regular audits and testing of security controls associated with the cloud to track the effectiveness of the cloud security. To know if your backup system works as expected, include server recovery in your annual business continuity testing. If you can’t meet the Recovery Objectives you set, your IT provider will have to make changes to your Business Continuity Plan.
The Benefits of Backup Security for Financial Institutions
The key to keeping customer data safe is to back up as often as possible. Banks are no exception and should invest in a strong backup system for their cloud storage. Not only is this a requirement but it also offers many benefits. Here are the benefits of backing up your cloud-based financial systems:
1. Quick Disaster Recovery
When a natural disaster strikes or a malicious attack occurs, you must be able to quickly recover your data with minimal disruption. If your systems went down, do you know how long it would take for you to get back up and running? If not, talk to your security partner and make sure you know what your disaster recovery objectives are.
Some IT providers—those that have experience with the banking industry—will have a clear idea of what you need to get back online. They should even be able to virtualize your crashed server on demand so you can have access to data. This will help you restore the most recent version of your data to a secure, off-site location, which helps minimize downtime and stress on customers.
2. Data Reliability
By investing in cloud storage security solutions that include advanced encryption technologies, banks can ensure that their data is always safe and secure. Data stored in the cloud is also incredibly reliable, meaning that banks can access it whenever they need to without worrying about lost or corrupted files.
3. Increased Efficiency
With a cloud-based backup system, banks can easily store massive amounts of customer data without having to worry about hardware breakdowns or power outages. This makes the process of managing customer data more efficient and cost-effective, resulting in better customer service.
By taking advantage of cloud storage security solutions, banks can protect their customers’ data and maintain a secure environment for all their financial transactions.
How Is Cloud Storage Security Better Than On-Prem Servers?
The cloud fits right into the highest levels of security standards—encryption, two-factor authentication, and threat detection. On-premise servers are more vulnerable, as they rely on the security measures of one physical location.
When stored in the cloud, data is still being kept in off-site physical locations. However, it’s being stored in multiple off-site locations. This means that even if one physical site is compromised, the data in the other sites remain safe and secure. Considering it’s accessible via the Internet, you can use your data anytime, anywhere.
To make cloud storage even more secure, your IT providers might take a copy of your data and store it offline, making it inaccessible without an Internet or other network connection. This is known as “air gapping” and it makes it impossible for hackers to corrupt your data remotely.
Plus, cloud storage security solutions offer additional layers of protection such as encryption to ensure that only authorized personnel have access to sensitive information. Cloud providers have a team of experts monitoring the server’s performance and security 24/7, whereas on-prem servers do not.
Access the Benefits of the Cloud With RESULTS Technology
With the most valuable information available in your databases, you need more than basic security. And with the cloud, you’ll benefit from increased productivity, collaboration, and cost savings. With over 24 years of protecting data in the banking industry, RESULTS Technology can help you take advantage of cloud security solutions.
Schedule a consultation with our security team and start seeing results from smarter security.