With the arrival of recent innovations, new products and services on the market – particularly within the financial services sector – security professionals are becoming increasingly aware of the rise of fraudulent activity, and now recognising the need to remain competitive, without compromising on security.
With reports of cyber-attacks, identity fraud and the misuse of client information increasing every year, it’s no surprise that more and more people are becoming increasingly concerned about security in general. The introduction of recent legislation, such as the European GDPR and the Data Protection Act (2018), has meant that organisations and businesses are now liable for their customer or client’s data should a data breach occur (legislation.gov.uk).
To combat these threats, the development of data protection and security measures within the financial sector will include the use of geolocation data; to compare the location of the device used for the transaction with the location of the cardholder. Several providers are also expected to introduce acoustic analysis into their call centre interactions, that will analyse background noise during calls to determine the caller’s true location. ‘Tokenisation’ is another security measure we expect to see more of in 2019, which is a process of replacing payment card data with secure, randomly generated tokens. As well as this, we expect to see an increased reliance on biometric authentication, that will take the place of the static passwords that many providers rely on.
But how can businesses remain innovative without compromising on security? Sam Pollard of London & Zurich said: “Security has to be a core element of every system or process and embedded in all facets of organisational culture. Doing so will not only allow for improved decision making on the quality assurance of any new products and services, but will also lower the potential risks attributed to rushed decision making simply to remain competitive.”
All organisations that carry out financial services and activities must be FCA regulated, by law. The FCA issues regular consultation papers, policy statements and updates on digital security – so it’s worth checking these to ensure they are complying with regulatory associations that are relevant to them.
An effective way of reassuring clients about the security of their data is to regularly communicate key updates. “London & Zurich is becoming ISO 27001 accredited, we have embedded improved security processes into our organisation. These processes allow us to consistently measure and review the security of data in accordance with industry-wide standards,” said Sam Pollard. “Not only does this help with transparency, but also to ensure we remain compliant.”
Similarly, your organisation may also wish to build trust with clients through active participation. This can be achieved by responding to comments via social media, or by creating a support system that your customers can rely on. Innovation is key to remaining competitive but means nothing if it causes you to lose client trust. If an organisation wants to grow, innovation and security must go hand-in-hand.