September 14, 2015 –Cybersecurity is a hot topic in today’s intricately interconnected virtual world, especially in the financial sector where the risk of information and identity theft is still high and can be dangerous.

A CNN writer noted that while state and federal laws are meant to act in the interest of public safety, an emerging technology poses a “serious threat” – that is to say, newer and more advanced methods of encryption protect user privacy in such a way that law enforcement is prevented from accessing the content, even in times of extreme need for the good of the individual, company, or nation at large.

The technology industry and many Americans have an absolute right to absolute privacy, but many argue that if technology firms build encryption systems where only they retain access, law enforcement should also be able to follow the appropriate legal process to obtain the suspected “bad actors’ records.”

Even though encryption is still spoken of as a risky business, the cloud strategies of financial firms appear to be rapidly maturing, according to a new report published by CipherCloud in July. The report states that financial firms have an increased confidence in cloud technologies, showing that 100% of respondents said they put certain personally identifiable information (PII) in the cloud, while 40% of organizations polled say that for the most sensitive information, they use tokenization and strong encryption. Tokenization typically uses randomly-generated codebooks to encode the data. These strategies demonstrate a clear trend to improve security as the sensitivity of data increases.

With more and more organizations using the cloud to store sensitive information, one of the main issues they face is data security compliance, as the risks of non-compliance are well-known: CipherCloud points out that analysts estimate total cloud spending will reach $28 billion in 2018, making cloud service providers a prime target for hackers.

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Sources

Bourne, James. “New report shows finance sector becoming more comfortable with cloud adoption.” CloudTech. TechForge, 30 July 2015. Web. 31 August 2015.

Rogers, Mike. “Encryption a growing threat to security.” CNN. Cable News Network, 1 August 2015. Web. 31 August 2015.

Wheatley, Mike. “Financial firms’ cloud strategies ‘rapidly maturing.’” SiliconAngle. SiliconAngle, 4 August 2015. Web. 31 August 2015.