Find out how secure file sharing can transform financial institutions. Increase security, simplify processes, and safeguard sensitive information.
Currently, 70% of financial firms rely on four or more systems to track and secure communications with third parties.
This makes secure file sharing more complex than ever. Adding more tools to protect traditional email communications often leads to more problems — security incidents continue to rise despite efforts.
With 80% of financial institutions planning to increase technology spending in the next two years, now is the time to switch to secure file sharing. By moving away from outdated email attachments and adopting a unified, secure file-sharing platform, financial institutions can better protect sensitive data and build trust with their clients.
Personally identifiable information (PII) refers to any data that can identify an individual. Financial institutions must access PII to provide services like account opening, processing transactions, and verifying identity.
However, this access also carries significant responsibility, as protecting PII is critical to prevent identity theft, fraud, and data breaches. Some types of PII financial institutions handle include:
In 2023, 64% of financial institutions experienced ransomware attacks — up from 55% in 2022. Insecure file sharing remains a persistent, evolving risk for financial institutions. These breaches often expose sensitive customer data and lead to identity theft, costly recovery efforts, and — in some cases — punitive actions against the breached organization.
Common vulnerabilities in file sharing include the use of email attachments and unsecured cloud storage. Since 94% of malware is delivered via email, attackers frequently use phishing campaigns to embed malicious attachments or links. Once opened, these can compromise an institution's entire network. Unsecured cloud storage further adds to the danger, as improperly configured permissions or lack of encryption can expose critical data to unauthorized access.
Real-world examples illustrate the severity of these dangers:
Over 100 million customer records were exposed due to a misconfigured firewall.
A large-scale ransomware attack by the Cl0p ransomware group compromised the data of over 37 million individuals.
These incidents highlight the urgent need for end-to-end encryption, enhanced access controls, and unified systems to safeguard financial institutions and their customers from data breaches.
What is the solution to insecure file sharing through email attachments? Secure document portals. These portals allow financial institutions to connect with their clients via fully encrypted channels with no unsecured middle points. Here are some key features of secure document portals.
Encryption is a fundamental feature of secure file sharing — it protects files both in transit and at rest. Encryption works by converting readable data (plaintext) into an unreadable format (ciphertext), ensuring only authorized parties can access it using a decryption key.
While popular business email platforms like Gmail and Outlook use transport layer security (TLS) to encrypt messages in transit, it does not encrypt stored data. Once messages reach the recipient's server, they remain vulnerable.
In contrast, 256-bit end-to-end encryption provides far stronger protection. With this method, data is encrypted on the sender’s device and remains encrypted until it reaches the recipient. Only the recipient’s private key can decrypt the message. The 256-bit key length makes it practically impossible to crack using brute force, ensuring that even if files are intercepted, they remain inaccessible.
One of the best ways to authenticate users — proving they are who they claim to be — is multi-factor authentication (MFA). MFA requires users to verify their identity using two or more authentication factors. These typically include something the user knows — like a password — and something they have — such as a mobile device for receiving a one-time code.
MFA makes it much harder for attackers to breach systems. Even if an attacker obtains a user’s password through phishing or brute force, they still need access to the second factor, such as the user's smartphone, to complete the login.
Role-based access control (RBAC) adds another layer of security. It allows organizations to define specific access levels for users based on their roles within the organization, ensuring that individuals can only access the data necessary for their job. This reduces the risk of unauthorized access and limits damage from internal threats
Tracking and auditing tools are essential for ensuring security and compliance in file-sharing systems. These tools show who accessed files, when they were accessed, and what changes were made.
File access tracking logs every instance of file access, including:
This allows organizations to monitor unusual activity, such as access from an unrecognized location. Advanced systems use behavioral analytics to detect anomalies in user behavior and automatically flag suspicious activity without human intervention.
Audit trails provide a detailed history of changes made to files, including edits, deletions, and transfers. These trails ensure accountability and help organizations quickly identify the source of a breach.
Key financial regulations, like the E.U.’s General Data Privacy Regulation (GDPR) and Payment Card Industry Security Standard (PCI-DSS), require organizations to protect sensitive customer data. Secure file-sharing platforms help institutions comply by encrypting data, controlling access, and providing audit trails for tracking file activity. These features ensure security while maintaining transparent audit trails.
FileInvite offers a secure platform designed for seamless file sharing, helping businesses protect client data and stay compliant with regulations like GDPR and PCI-DSS.
Key features include:
These tools prevent data breaches and provide clear visibility for compliance. By automating the document collection process, FileInvite enhances security while simplifying workflows, making it an essential tool for distributed teams handling sensitive client data.
To learn more, request a demo of FileInvite today.
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