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Data Loss Prevention in Financial Services

Data loss prevention (DLP) and insider threats are a top priority for security leaders across industries, especially in financial services.

But, because legacy DLP solutions are reactive instead of proactive, most IT teams don’t have clear visibility of data movement or employee behavior. That means preventing data loss and avoiding breaches can be an uphill battle.

Our latest research can help.
30,000-foot view: DLP in financial services

Whether it be an accountant, a broker, or a financial planner, employees working in financial services process and hold incredible amounts of personal and financial data, merger and acquisition (M&A) data, and Intellectual Property (IP). 

It’s also one of the most competitive industries, which makes organizations especially vulnerable to insider threats. 

In fact, financial services is among the most likely to experience an incident involving employees misusing their access privileges and sees the second-highest number of human errors (for example, an email being sent to the wrong person). 

It’s no surprise, then, it’s one of the most highly-regulated industries.

Email: your firm’s leaky pipeline

When it comes to DLP, security leaders have hundreds – if not thousands – of networks and endpoints to monitor and lock down. And, while devices and file sharing applications are on everyone’s radar, when asked what threat vector they’re most concerned about protecting, security leaders said email. 

It makes sense. 

Over 306.4 billion emails were sent and received in 2020 and employees spend 40% of their time on email. Accidents happen.

A simple mistake can cause big problems, especially with strict data privacy laws like GLBA, COPPA, and FDIC 370. 

Unfortunately, accidents like this happen a lot more frequently than security leaders estimate.

Just the tip of the iceberg

According to Tessian platform data, at least 800 emails are sent to the wrong person in companies with 1,000 employees each year. That’s more than two every day

And, in financial services specifically, 57% of employees admit to having sent an email to the wrong person before. Depending on the organization and the employee, these emails could contain bank account numbers, loan account numbers, debit/card numbers, social security numbers, and highly sensitive corporate documents. 

Meanwhile, security leaders estimate just 480 are sent every year. That means visibility is a big problem, that self-reporting mistakes isn’t a viable solution, and that legacy DLP solutions aren’t effectively stopping data loss.

Driven to distraction at work and at home

So, why do employees make mistakes at work that compromise security? According to employees, the top three reasons are: stress, fatigue, and distraction.

And, while many firms are slowly transitioning back to the office, others are adopting permanent remote and hybrid working environments, with 69% FS companies saying they’ll have over half of their workforce working remotely at least once a week going forward. 

The problem is, over half (44%) of security leaders in financial services say they’re concerned about employees’ unsafe data security practices in a hybrid-remote environment. And they have every right to be concerned. 

56% of employees working in financial services say they’re less likely to follow safe data practices when working remotely. 

It’s not always “just an accident”

Security leaders know that the vast majority of employees are well-intentioned and want to build a security culture based on trust. 

But, that doesn’t mean there aren’t some people who knowingly exfiltrate data. Generally speaking, 90% of risks tend to be focused within 10% of the employee base. 

Still, nearly half (47%) employees working in financial services admit to downloading, saving, or sending work-related documents to personal accounts before leaving or after being dismissed from a job. 

And, according to Tessian platform data, at least 27,500 non-compliant, unauthorized emails are sent every year in organizations with 1,000 employees. Security leaders estimated just 720.

What is an Unauthorized Email?
The Risks of Sending Data to Your Personal Email
An unauthorized email is an email sent to a personal email account or a third-party that contains sensitive information. While this isn’t always malicious, it is generally against security policies and could be a sign of intentional data exfiltration.
The biggest concern? Reputation.

Our research shows that, across industries, security leaders are most worried about losing customers and their trust and lost data in the aftermath of a breach.

But, if you break that data down even further and isolate security leaders working in financial services specifically, you can see a stark difference. Instead of losing customer trust and lost data, they’re twice as likely to say that their top concern is damaged reputation. 

Why? Because reputation is everything in financial services and, the only way to retain clients and win new business is by demonstrating you have a strong information security framework.

Weighing the pros and cons

Enough about the problem. Let’s talk about solutions.

When asked about the most effective way to keep data secure, 32% of security leaders said following company policies/procedures. 23% said physical security. 22% said security awareness training. And 21% said software/tools.

But, we all know one single solution isn’t enough. Why? Because employees don’t always follow policies and procedures (especially if they make their job harder to do), security awareness training alone can’t change behavior long-term, and rule-based DLP is a blunt instrument that impedes employee productivity and creates too much noise for thinly-stretched security teams. 

The bottom line is: It takes a village to prevent data loss and the best data protection programs take a nuanced and holistic approach by combining all of the above.

A different approach to DLP

Financial institutions like Prudential, Schroders, Investec, and GoCardless trust Tessian to keep their critical client and employee data safe. Across two solutions, Tessian automatically detects and prevents misdirected emails, mistattached files, and unauthorized emails and puts data at security leaders’ fingertips.  No rules required. 

Better still, Tessian helps improve employees’ security reflexes long-term with in-the-moment warnings that reinforce security policies while nudging them towards safer behavior over time. And, with employee risk scores that update automatically, security leaders get a bird’s eye view of their most risky and at-risk employees.

It’s the only solution that offers protection, training, and risk analytics all in one platform, giving security leaders a clear picture of their organization’s risk and the tools needed to reduce that risk.

Download the Full Report
The State of Data Loss Prevention in Financial Services 2021
To read more about DLP in financial services, and to learn how easy it is to track and protect sensitive data with Tessian, download the report now.
Methodology
In addition to using Tessian platform data, we commissioned OnePoll to survey 2,000 working professionals: 1,000 in the US and 1,000 in the UK; additionally OnePoll surveyed 250 IT leaders in the US.

Survey respondents varied in age from 18-51+, occupied various roles across departments and industries, and worked within organizations ranging in size from 2-1,000+.

We also interviewed several IT, security, and compliance professionals with diverse backgrounds, all of whom provided insights that helped frame this report.
Publically available third-party research was also used, with all sources listed in the downloadable PDF.

Midpoints and averages were used when calculating some figures and percentages may not always add up to 100% due to rounding.
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