Amidst the aftermath of the Equifax data breach, cybercrime is a timely issue facing the financial services industry. New reports respond with the release of its most recent surveys and guidance to better ensure cybersecurity.
In response to Equifax’s data breach, LendEDU [1] made projections based surveys from the Consumer Financial Protection Bureau’s (CFPB) complaint data [2], the report outlined that the bureau has received 172,390 complaints total in 2017.
According to LendEDU, out of those total complaints, 51,696 were listed as "credit reporting related" complaints, representing 32.17 percent of all complaints and making it the largest type of grievance.
To combat cybercrime challenges, External IT’s latest white paper report follows after the latest cybersecurity risk alert from the SEC's Office of Compliance Inspections and Examinations (OCIE), offering guidance on the security issues financial firms face daily.
"Dealing with cybersecurity incidents is not a question of 'if' it happens, but rather 'when'," said VP of Solutions & Security at External IT, Justin Kapahi. "We applaud the OCIE initiatives but believe their recommendations are a bit broad and hard for advisors, especially those who don't have expertise in security and IT, to follow."
External IT's white paper details the firm's observations in the field and offers suggestions for stronger cybersecurity practices, including, “implementing and documenting proper controls, enforcing and testing controls, implementing security training programs, evaluating risk and data exposure, and performing thorough due diligence on vendors.”
Kapahi said that with these practices applied, firms can stay ahead of federal and state regulations because any response to a new rule won't require a dramatic overhaul to their IT and cyber program.
"The cyber threat is real, and advisors who are unprepared should seriously consider partnering with an IT provider specializing in the financial sector to help them secure their firm's data as well as to meet regulatory requirements," Kapahi said.
Click here [3] to download the full white paper.