Protecting Company Assets - How to Safeguard Your Financial Data Against Evolving Threats
Your financial data isn't just a collection of numbers and transactions – it's the lifeblood of your business. But here's the reality I'm seeing with clients every day: criminals want that data, and they're getting smarter about taking it. The playbook keeps changing too. One week it's ransomware locking up your accounting system, the next it's someone impersonating your CEO to trick your finance team. These threats aren't just growing – they're becoming increasingly difficult to spot until it's too late.
As someone who's spent over three decades helping organizations navigate technology and risk management challenges, I've witnessed firsthand how proper safeguards can make the difference between business continuity and catastrophic loss. Let me share some practical insights to help protect your company's financial assets.
The Current Threat Landscape
Financial data breaches often begin quietly. A seemingly innocent email, a compromised vendor account, or an employee using weak credentials can provide all the access attackers need. Once inside your systems, threat actors might lurk for months, studying your payment processes, accounting workflows, and financial controls before striking.
Modern attackers don't just steal data—they've learned that holding it hostage or threatening to release sensitive information publicly can be even more profitable. The average ransomware payment now exceeds $300,000, but the true cost of recovery often runs many times higher.
For small and mid-sized businesses, these aren't abstract threats. In fact, smaller organizations are increasingly targeted precisely because they typically have fewer security resources while still processing valuable financial transactions and data.
Essentials of Financial Data Protection
Protecting your financial information requires a comprehensive approach:
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Implement Zero-Trust Security for Financial Systems
The concept of "trust but verify" no longer suffices. A zero-trust approach assumes all network traffic might be compromised—requiring continuous verification before granting access to financial applications and data. This means:
- Implementing multi-factor authentication (MFA) for all financial systems access
- Limiting financial system access to only those employees who absolutely require it
- Verifying the identity of users and the security of their devices before granting access
- Regular permission reviews to eliminate unnecessary access
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Secure Your Remote Financial Operations
Remote work has created new vulnerabilities for financial operations. When team members process payments, access banking portals, or manage accounting software from home networks, you need additional safeguards:
- Ensure remote employees use encrypted VPN connections
- Deploy endpoint protection on all devices accessing financial data
- Create clear policies for handling sensitive information in remote settings
- Consider deploying secure virtual desktops for financial operations
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Focus on Email Security
Email remains the primary attack vector for financial data breaches. Threat actors use sophisticated phishing techniques targeting your finance team, often impersonating executives, vendors, or partners. Protecting your communications requires:
- Advanced email filtering to detect impersonation attempts
- Implementing DMARC, SPF, and DKIM email authentication standards
- Ongoing phishing simulation training, especially for finance personnel
- Clear procedures for verifying payment requests or banking changes
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Develop Strong Financial Controls
Technology alone can't protect your financial data. You also need process-based safeguards:
- Implement separation of duties for financial transactions
- Require secondary verification for payments above predetermined thresholds
- Establish clear procedures for changing vendor payment information
- Conduct regular financial reconciliation to detect anomalies quickly
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Create a Financial Data Backup Strategy
When prevention fails, recovery becomes essential. A comprehensive backup approach for financial data should include:
- Segmented backups that keep financial data separate from other systems
- Regular testing of financial data restoration procedures
- Immutable backup options that prevent attackers from encrypting or corrupting backups
- Offsite and offline backup copies of critical financial records
Preparing for the Inevitable
Despite your best efforts, financial data security incidents will occur. Your response capability often determines whether an incident becomes a minor disruption or a business-threatening crisis. Consider these preparation steps:
- Develop a specific response protocol for financial data incidents
- Maintain relationships with financial forensics specialists before you need them
- Create communication templates for notifying stakeholders about potential financial data exposure
- Regularly test your financial systems recovery capabilities
- Document key financial processes so they can continue during system outages
Board-Level Oversight of Financial Data Security
For board members and executives, financial data protection requires strategic oversight:
- Understand that financial data security is a business risk, not just an IT issue
- Ensure cyber liability insurance adequately covers financial data breach scenarios
- Review and question the organization's financial data security controls
- Recognize that regulatory requirements and insurance underwriters increasingly expect board-level involvement in cybersecurity governance
The Path Forward
Securing your company's financial data in today's threat environment requires balancing security with business operations. The key is implementing layers of protection without creating unworkable processes that drive people to find risky workarounds.
Start by assessing your current financial data security posture against industry frameworks like NIST or CIS Controls. Identify the most critical gaps based on your specific risks, then systematically address them through a combination of technology, process improvements, and people-focused initiatives.
Remember that financial data protection isn't a one-time project but an ongoing program that must evolve as threats and your business change. By taking a structured, risk-based approach, you can significantly reduce your vulnerability while ensuring business continuity when incidents inevitably occur.
Tom Glover is Chief Revenue Officer at Responsive Technology Partners, specializing in cybersecurity and risk management. With over 35 years of experience helping organizations navigate the complex intersection of technology and risk, Tom provides practical insights for business leaders facing today's security challenges.
