In the UK, according to Financial Fraud Action UK, financial fraud losses across payment cards, remote banking and cheques totalled £768.8 million in 2016, an increase of 2 per cent compared to 2015.
Additionally, more than £230m was paid to fraudsters using bank transfers last year but only a quarter of this sum was recovered and reimbursed to victims!
The cloud has truly proven itself to be an optimal environment for compliance, even for financial services. Key requirements like PCI-DSS compliance, logging, data control, redundancy and maintenance can all be met through cloud hosting. Here's how:
International regulations like PCI-DSS are crucial to preventing fraud, and businesses in the financial services industry must adhere to these guidelines by meeting certain objectives including:
Cloud hosting through a trusted managed services provider can help your organisation to achieve PCI-DSS requirements no matter your size or which level you need to achieve.
Financial services require a high level of accountability with data storage, which cloud environments can help achieve. Logging helps you to keep track of specific sets of data and log retention requirements, which dictate how long data must be kept (often different for each regulation) and are easier to achieve in the cloud. Cloud environments facilitate easier storage and cost-effective, long-term storage options.
Hyper-scale cloud providers and managed service providers can help automate the data classification process, so banks, insurance and investment firms can easily tag their data, store it efficiently and access it when they need. Additionally, cloud computing helps organisations to identify mis-labeled data or get a larger picture of what information they store, so they can comply with data protection regulations.
Cloud solutions build redundancy into your IT infrastructure, which is key for the financial services industry, where systems need to be available at all times. With cloud computing, you can mirror entire workloads to secondary locations in the event of any outage or natural disaster. Legacy, on-site IT systems are simply not built for redundancy!
Any security patches or upgrades can be quickly deployed across your entire IT infrastructure and immediately applied to your systems. Storing your systems in a secure, secondary location also allows you to perform other routine system maintenance with no interruption to users or customers. Better yet, the routine upgrades can be done by a trusted managed services provider without any headaches for your team.
Our project with Sequel Business Solutions is an excellent example of how managed cloud services work for financial institutions.