Due to its crucial position in the global economy, the financial services industry is one of the most strictly regulated in the world. Organizations in this sector must operate with a top cybersecurity standard to safeguard customers, stop financial crimes, encourage ethical business practices, and maintain the financial system. Luckily, various cybersecurity frameworks are in place to help businesses safeguard their data. However, since most of these frameworks are relatively new, one should rely on CMMC consulting firm. We’ll talk about the cybersecurity laws relevant to the financial sector in this article. Additionally, we’ll look at some best practices for maintaining compliance and preserving client privacy.
Top Financial Services Cybersecurity Rules
The key cybersecurity laws and compliance guidelines pertaining to finance industry businesses are listed below. Although each of them has various specifications, they are all designed to safeguard client information and guarantee the confidentiality of financial transactions.
Payment Card Industry Data Security Standards
For: Any company that accepts card payments must adhere to the Payment Card Industry Data Security Standards. The leading payment card companies, Visa, MasterCard, American Express, Discover, and JCB, developed the Payment Card Industry Data Security Standards (PCI DSS) as a set of security guidelines to safeguard client information and stop fraud. The PCI DSS applies to all companies that handle, store, or transmit credit card information. This covers retailers, processors, and other organizations dealing with credit card information.
The six main categories best describe the PCI DSS compliance requirements:
- Create and keep a secure network
- Safeguard cardholder data
- Keep a vulnerability management program going
- Put stringent access control procedures in place
- Periodically check and test systems
- Maintain a policy for information security
For: Companies that trade publicly In reaction to corporate accounting crises between 2000 and 2002, the Sarbanes-Oxley (SOX) Act was a legislative statute passed in 2002. Public corporations must keep accurate financial documents and promptly notify of any substantial changes.
The SOX Act has recently changed to add cybersecurity requirements. Companies must now have sufficient controls and processes to safeguard against cyber threats, particularly to comply with SOX regulations. Controls for sensitive data access, information security, and incident handling are a few of them.
For: Anyone looking for a basic cybersecurity framework should use the cybersecurity framework. The National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) shows a set of best practices for controlling cybersecurity risk. It offers a framework for businesses to evaluate their cybersecurity vulnerabilities and determine the policies they must implement to lessen those risks.
Although the NIST CSF is not a compliance requirement like CMMC compliance, more firms are adopting it to strengthen their cybersecurity preparedness. Regulators also employ the approach to evaluate the cybersecurity threats posed by financial organizations.
General Data Protection Regulation
For: Any business hosting data of a person in a jurisdiction of the European Union is subject to the General Data Protection Regulation. A legislative framework known as the General Data Protection Regulation (GDPR) was developed to safeguard the personal information of EU citizens and residents (EU). No matter where the firm is headquartered, it must comply with the GDPR if it handles or proposes to handle the personal information of EU residents or citizens.
According to the GDPR, people have the freedom to know what personal information is being gathered about them, to have it erased, to reject its processing, and to receive and use that information for any personal goals. As a result, businesses must take precautions to safeguard customer information, including ensuring it is maintained securely and only accessible by authorized employees.
A Data Protection Officer, who is accountable for ensuring GDPR compliance and is liable for any violations, must be appointed by organizations that process the sensitive data of EU individuals.