The security of financial data is a constant challenge, particularly in recent years. A market research firm noted that the financial sector is the second-greatest target for data breach attempts, with data violation incidents increasing almost three times between 2022 and 2023. For any company storing sensitive financial data, security is paramount. With this guide, administrators can determine how AI can improve system security and reduce the chances of a data breach.

Threats to data security

Keeping financial data in the cloud is convenient, but it can also be risky. Although many of the most common attempts to breach company security have existed for decades, effects in recent years can be devastating to those who fail the test.

Phishing scams

Phishing involves the use of an individual’s information to gain more. Typically, phishing comes in the form of a text or email that prompts the user to visit a website and provide sensitive data. Although many phishing emails look obviously fake, others can seem disturbingly realistic.

Malware

Malware relies on the installation of harmful software that affects one or more users and may also contaminate other devices. Usually, the malware starts with a user downloading and installing a file that allows the malware to run. Malware may operate by spying on the user to copy keystrokes and track data, or as ransomware to shut down the entire system.

Weak encryption

The shift to remote work for many companies raises questions about encryption. With more and more companies operating entirely remotely, the security of each remote worker’s devices is crucial. Weak encryption allows hackers to gain access to sensitive documents and data.

Poor system security

Even businesses that implement security plans for their financial data may discover failures at certain points. Poor system security can result in hackers gaining access to company systems and using this information to engage in theft or other crimes. The most common type of attack is a DDoS, which involves attacking a system until it shuts down.

AI Solutions for modern financial data protection

Modern financial data protection requires a modern solution, which often involves the use of AI technology. AI offers a variety of advantages for companies that need to improve their data protection and need to ensure compliance with a regulatory reporting platform.

Email threat detection

Because responding to phishing scams is a human choice, AI can reduce the chances of success. Phishing scams usually present in predictable ways, which allows AI systems to identify likely scams within moments of receiving them. In many cases, an AI system can also remove phishing emails before users see them, decreasing the likelihood of error.

Predictive analysis

AI operates by looking for patterns and determining what is most likely to come next. Someone who attempts to gain access to restricted data often takes a predictable set of steps that AI can identify. The system can provide valuable information to administrators to aid in planning methods to prevent unauthorized access, while also shutting down or delaying attempts to gain access as they happen.

Weakness identification

Many businesses do not know about weaknesses in their system security until a breach, which AI can help to prevent. Companies may not have the resources or the time to allow employees to invest in thorough testing of a system’s security, but AI can. An integrated AI system can provide regular evaluations of system security, identifying weaknesses and generating alerts so that administrators can execute prompt solutions.

Robust data encryption

For sensitive financial data, encryption must happen at all stages of creation and maintenance. Working with data in multiple systems — with possibly hundreds or thousands of users accessing the same regulatory reporting platform or other system — requires encryption that does not fail. AI can maintain the encryption even during testing and maintenance, so that the opportunities for a breach remain consistently low.

24/7 monitoring

Many breaches to data security happen in the off-hours, which AI can help to avoid. Once implemented, AI can provide consistent monitoring of all systems. Rapid alert systems offer instant notifications to relevant parties in the event of suspicious behavior or a security weakness, so that administrators can respond quickly.

Protecting company security requires constant vigilance, and businesses need to employ the most effective tools to achieve it. With the implementation of these AI solutions, companies can prevent unauthorized access to sensitive financial data and minimize the effects of a data breach.