How can a company protect its financial data?

Posted On January 12, 2023January 14, 2023

Believe it or not many companies suffer from intellectual, and financial losses, brand image damage, and loss of customers due to leaks of sensitive data. Information pertaining to financials is confidential and losing it can cost a firm’s position in the industry. This is why it is crucial to follow the below tips to secure data. You can also choose the installation of a simple solution for the same i.e., ifrs software.

• Passwords
• Multifactor authentication
• Software updates
• Emails

Passwords: This is no brainer; if the set password is easily guessable and weak, any person can crack it. This is why it is necessary to encourage your employees to create strong passwords. The code must be changed every three months so that any unauthorized person cannot unlock it.

• Create a unique code that includes numbers, symbols, and letters.
• Avoid including birthdates, next of kin, names, and any information that is accessible in the office.
• Every website or application must have a different password.
• Never save your passwords to your browser.

Some employers use password managers for the generation of alphanumeric codes to store in encrypted vaults.

Multifactor authentication: A system that involves an extra layer of security to confirm the identity of a staff member is called a Multifactor authentication. Some subordinates might miss creating strong passwords, in such cases, a hacker can crack the code to enter the database. But with the presence of Multifactor authentication,the data stealer cannot get access as the second factor is not easily attainable. A second factor is usually a security code sent to the mobile. This method is available in different forms such as one-time passwords(OTP), push notifications, and hardware tokens. A few organizations use third-party methods whereas some have built-in MFA.

Software updates: Computers and phones contain sensitive financial information. If you do not update their software, you will end up giving away some of the crucial information to the hackers. Regular updates will mitigate the risk of losing confidential data due to technological errors. A centralized software management system is a smart approach that gives a heads-up about future updates.

Emails: Phishing emails are on their way to help hackers steal your data. A link that directs to a fake site will promote information theft. This is why it is important to train every employee to identify such emails and prevent loss of data.

Bottom line

From the above, it is evident that every organization must follow some standard tips to protect their financial information. As leakage of sensitive data can ruin the reputation and business of an entity. Some of the basic tips are mentioned above for the same. You can also utilize the services of an entity that offers ifrs software.