1. Summary
  2. Best Data Security Practices for Banks
    2.1 Authentication
    2.2 Audit Trails
    2.3 Secure Infrastructure
    2.4 Secure Processes
    2.5 Continuous Communication


Banks and banking functions as we all know them are around for hundreds of years currently. The history of cash is tightly tangled with the history of the industry. Even though the approach we tend to bank has modified significantly, the essential principles stay equivalent. a number of the banks we all know these days are around longer than we tend to as people. Maybe this is often why customers trust that their banks can keep their cash safe and safeguard all the opposite data they need concerning them.

Best Data Security Practices for Banks

To secure sensitive knowledge, banks need to follow a 360 degrees approach to make sure that an information breach doesn’t crop up internally or outwardly. This means securing each customer-facing finish of banking processes additionally because of the internal processes associated with workers, vendors, systems, and processes. Following are the number of the ways during which this is often done.


Authentication needs that each dealing within the bank takes place when confirming the identity of the person initiating the dealing. This applies to the shoppers who work in online or mobile banking systems, to those visiting the bank head to head, or those victimization credit/debit cards at POS terminals and ATMs. It conjointly applies to bank workers whose agencies have access to customers’ and banks’ knowledge. whereas earlier authentication merely needed AN ID and parole or PIN, several banks have currently enforced two-factor and multi-factor authentication to make sure that the person is really who he/she claims to be. Banks also are victimization identification techniques to verify customers’ identity, as well as behavioral life science, once they act with banking systems like IVR.

Audit Trails

A history of banking transactions was continually obtainable as an announcement or bankbook. To boot, banking systems conjointly maintain an audit path for each event that takes place throughout a customer’s interaction with the systems. Whether or not it’s a client victimization phone banking or online banking, the time of the interaction is recorded beside the main points of the interaction. This knowledge is insured daily and is rarely purged fully however archived at outlined time intervals.

Secure Infrastructure

Secure infrastructure implies the information systems and servers wherever knowledge is held on and also the boundaries established to secure these. Production knowledge is sometimes encrypted in any core industry. If needed for testing, necessary knowledge like checking account range, client name, and address must be covert. Access to production systems is restricted. Vendors who subsume infrastructure are typically completely different from those that subsume applications. The bank workers are sometimes given special instrumentation wherever access to social websites, personal emails, and USB ports is blocked. Workers will solely access the banks’ network over a VPN once they victimization public Wi-Fi.

Secure Processes

Banks have established several processes to make sure that security is enforced and tested. This includes KYC (Know Your Customer) updates for patrons, NDA (Non-disclosure agreement) for workers and vendors, and securing special zones inside the premises and remote knowledge centers.

With knowledge Loss interference (DLP) solutions, banks will mitigate corporate executive threats and safeguard customers’ knowledge like names and MasterCard numbers. These solutions also can facilitate meeting the compliance needs of knowledge protection rules like the GDPR, therefore making certain that a bank’s security meets agreement standards and keeps its customers’ data secure.

Processes associated with international and native rules also are enforced, and risk assessments are dispensed to make sure that these processes are in line with the wants.

Continuous Communication

Banks conjointly communicate frequently with shoppers on upgrades to systems, the introduction of the latest authentication procedures, etc., in addition to the periodic account statements that are generated and sent to customers. Customers also can set limits and alerts supported by completely different conditions to make sure that they’re knowing if any surprising activity takes place regarding their accounts. Whereas there are multiple channels of communication obtainable, the set-up is versatile to cater to customers’ convenience.

Thus banks work around the clock to make sure that they are doing everything that has to be done to secure their knowledge.