3 Ways to Ensure Cybersecurity Is a Priority for the Companies You Partner With

3 Ways to Ensure Cybersecurity Is a Priority for the Companies You Partner With

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The Cybersecurity Business has become everyone’s business. One viral data breach can destroy a company’s social proof and send its clients fleeing to other organizations looking for safer conditions. IBM estimates The average data breach in 2018 cost businesses $4.35million, an increase of nearly 13% since 2020. This doesn’t include the irreversible damage to a company’s reputation.

However, headline-grabbing data leaks don’t just concern credit card and identity information. These incidents can include any and all personal and private information. You trust that the prospective lender will be a good steward for your information when you submit a loan application. You expect the same level security when your business does business together with another company.

Related: Three Reasons Privacy Matters for Your Business, Your Brand, and Your Future

Financial services industry is held to very high standards of security. Even the smallest error must be reported to multiple entities. The industry we work in is not the only one with high expectations regarding prioritizing. Cybersecurity is vital It’s also important in business. It has become a mission-critical issue across all industries.

However, there can be a surprising upside in all the worry and rigidity. If you are doing a great job in implementing the most reliable and secure cybersecurity solutions for businesses, then you have the potential to make your protocols a success. Differentiator. Customers trust what they see when they see “social proof” of it. But, this social proof cannot be tapped if you don’t manage all elements of your cybersecurity business, including how proactive and protective you partners are with your shared data.

Insiders can reduce risk exposure.

As we mentioned, we work in the financial services industry. Advanced data encryption tools and technologies are required to maintain our license. Because so much personal information is exchanged online, encryption is crucial.

We must also follow BSA/AML Compliance Guidelines To the letter, just as any other financial institution. We have a BSA compliance office that handles all compliance coordination monitoring and oversight. The BSA compliance officer is a key player in assuring regulatory bodies, board members, customers, and the public that we are doing what’s necessary to lower our emissions. risk exposure.

It is not easy to open a money-service business like ours. After taking so many steps, and doing intense due diligence, it’s understandable that we are cautious about who we partner with. It’s important that you are as well, because one bad apple can bring down the whole group.

Related: Five Ways to Protect Your Business from Cyber Attacks

Know exactly with whom you are doing business

All companies, especially MSBs or money service businesses, need to be vigilant and have strategies in place to reduce the chance of a breach. It takes a lot to build such a cohesive, comprehensive company. Protection plan. The minimum requirements for getting started are to run online business transactions on a secure server and implement data encryption processes.

Companies of all sizes should look at the following methods to ensure that everyone with access to your data believes in safety just as strongly as you do.

1. Check each partner for basic compliance

It is important to review the foundational elements thoroughly, such as having current security certificates and performing detailed security audits. Use a VPN To protect browsing data fully and get federal agency approval when needed. You should not allow potential partners to cut corners on compliance, whether they are doing so intentionally or not. It is better to continue the search until all your concerns are addressed. Do not settle for less than the best.

It is important to treat every potential partner with the same degree of diligence as you would for any other partner. Threats and attacks can come from both small and large companies. According to the Verizon Business 2022 Data Breach Investigations Report, there were a total of 58 incidents. 62% of “system intrusions” incidents Originated with a partner organization. The Ponemon Institute found that 54% of organizations “never monitor the security and privacy practices third parties they share with them.” Sensitive or confidential information With on an ongoing basis.”

This is extremely alarming. Opportunistic cybercriminals will always seek the weakest link in the supply chains.

2. Verify third-party verification

In today’s digitally complex world, honesty is a must. This is especially true when it comes to verifying the identity of someone or the motives behind a potential vendor. Enter Third-party providers They use a variety techniques to find out the true identities of customers or businesses who are trying to join forces. These third-party testers monitor platform security and infiltration, which is a tedious task.

My company, Xchange of America uses a third party verification service. Customer identities must be authenticated Specific inputs. Four random verification questions are asked that only the true person would understand. These include the make and model of the previous vehicle(s), street names, and the previous employer(s). These unique details are used to keep criminals away and prevent sales fraud.

Third-party verifications will be performed differently in different industries than ours. However, the importance of each company’s third-party verification is the same. Are your partners using thorough third-party verification techniques? You should insist on this.

Related: Authentication Technology is Shaping Vendor Verification and Onboarding

3. Full transparency is required

What happens if your partner starts asking questions and you run into brick walls? This could be a sign that they aren’t being honest. Partner should be open to questions and not hide anything. All money service businesses, such as ours, must be licensed and registered in the states where they operate. It’s a red flag if a potential partner requires certain registrations, licenses, or permits, and they don’t have them.

When it comes to compliance answers, be persistent. Do not be afraid to ask questions like how data encryption works in a partner’s organization. Data breaches Information that is encrypted in all forms, including storage and motion, can be used to prevent unauthorized access.

Dropbox is an example company that takes data encryption and protection seriously. According to Dropbox’s help centreFiles at rest are encrypted using the 256-bit Advanced Encryption Standard, (AES). To protect data transiting between Dropbox apps and its servers, the company uses Secure Sockets Layer/Transport Layer Security (TLS), among other layers of protection.

Related: Cybersecurity Trends and Drivers for 2022

It is important to know the level and type of encryption used by any associated organization. Dropbox’s transparency should be the norm, not an exception.

Corporate leaders and their teams have to find and fix cybersecurity vulnerabilities as long as cybercriminals are willing and able to hack into systems. You must ensure that you are not only looking for ways to Improve your cybersecurity. It is a top priority for all companies with which you do business.

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