Banks and financial institutions are required to protect client data by law and contract. It is vital that financial institutions dispose of sensitive information securely. Due to the increasing risk of security breaches, data destruction for banks must be implemented and foolproof in order to protect customer information.
Data Destruction Policies
Federal Trade Commission (FTC), requires financial institutions that fall under FTC supervision to have a system in place for protecting customer information. Banks must develop a policy for data destruction that describes their efforts to protect customer information.
Your institution’s size, complexity, and scope of operations must all be considered in your policy. The policy should outline both the data protection and disposal procedures. All customer information must be destroyed in accordance with the FTC’s disposal rules.
A policy that is effective will prevent security breaches, ensure compliance with all applicable legislation, and reduce disposal costs.
Data Destruction For Banks Standards That Apply
A number of regulations govern data security and destruction in banking. These regulations include:
- The Gramm-Leach-Bliley
- Payment Card Industry Data Security Standards, (PCI DSS).
- Sarbanes-Oxley Act (SOX)
- BASEL II
- FACTA Disposal Rules
- Bank Secrecy Law
- Patriot Act of 2002
- The Identity Theft and Assumption Deterrence Act and PCI Data Security Standard.
- Compliance with data security laws is mandatory. Violations can have severe consequences.
Use a NAID AAA-certified process. This is vital due to the rapid technological advancements that have led to regular IT asset management decisions within the banking sector. These management decisions include upgrading and shifting hardware, including servers, hard drives and backup media.
Creating A Secure Data Destruction Policy Within Your Organization
You can avoid costly fines by creating a reliable and secure data destruction for banks policy. This will protect your company’s reputation, and increase customer confidence.
Data shredding is a good idea. Data shredding is the best and most recommended method of data destruction. To make customer data unreadable and impossible to recover, you can burn, pulverize or shred documents and files.
To manage data destruction, you should use an ITAD manager. A qualified ITAD manager will make sure that your company takes all necessary steps to comply with legal and contractual obligations.
Your Data Destruction Policies Future Is Secure
Many institutions have outsourced their ITAD management to third-party disposal companies to ensure compliance. This has been a cost-effective and reliable option for many companies. However, it is worth doing your research by checking the ITAD company.
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