A majority of data collection and delivery processes in the banking sector is performed over email-- and has been for quite some time. These processes typically involve attaching pay stubs, tax returns, etc.
Unfortunately, it’s become clear that email is not as secure as it should be. The recent 2020 Data Breach Investigations Report from Verizon detailed exactly how email remains a huge source of risk.
In this guide, we’ll break down the key points from the report.
Summary - 2020 Data Breach Investigations Report
- In 2020, there were 2,950 breaches across sixteen different industries and four world regions.
- In the financial planning and insurance industries alone, there were 1,509 incidents. 448 of these incidents had confimed data disclosure.
- Of the data compromised, 77% were clients’ personal information, 35% were credentials, 32% were bank-related breaches, and 35% are listed as “other.”
- When it comes to cybersecurity in the financial sector, “miscellanious errors” once were the main pattern and the top cause of most breaches. However, web applications, specifically email accounts, are quickly becoming the main sources for data breaches at banks and investment firms.
- It’s believed that this trend can be attributed to simply misdelivery-- namely, financial advisors and bank staff unintentionally sending the wrong information to the wrong person. This information can include electronic data, such as an email sent to the wrong recipient via an autofill in the “To:” field.
- This trend in email mistdelivery is a dangerous one, as the level of sensitivity in the data sent can vary significantly. This can cause a relatively minor breach or a massive breach, depending on what files were attached to the email and how large the pool of people the email was sent to is.
Comment below your thoughts on this recent data breach and the future of email in the finance sector.