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Reduce Banking Data Breaches with Redaction Tools

Written by Umer Ahmed | December 22,2023

Cyberattacks have gotten much more frequent in the past five years, and Verizon's 2022 breach report highlights 2,500 cases, from which 690 were confirmed to have disclosed data. Besides amping security to limit breaches, financial firms, and others use redaction tools for cyber defense.

And it makes complete sense as 95% of such attacks are backed by a monetary motive, so financial institutions must double down on security. Plus, they must take a proactive approach to ensure no privileged information leaves the room in case of a breach.

Among other methods, the financial sector typically gets victimized by hacking, phishing, and malware, such as Ransomware.

It is pretty concerning that ransomware attacks have increased by 64% since 2022, in which cybercriminals intercept and encrypt data and demand a ransom to decrypt it.

With so many sophisticated tools and technologies to gain unauthorized access, financial institutions must hold redacted videos, documents, images, and audio to ensure that no sensitive information lands in the wrong hands.

With all that said, let's explore how we can further ensure the security of confidential info by using redaction process.

However, if you have time constraints, jump to our 7-day free trial and test our redaction services.

The Landscape of Data Security in Banking and the Use of Redaction Tools

The rapid evolution in the banking and finance industry promotes an open banking system, also revolutionizing the industry and encouraging the need for redaction tools.

However, it enables third-party providers to access bank data and carry out financial transactions, raising concerns about data safety and privacy.

With banks dealing with tremendous amounts of consumer data, they are a high-value target for data breaches.

Moreover, banks are liable to follow strict federal laws and regulations for data privacy and protection. They have to pay heavy penalties under the Federal Reserve Act if unredacted information lands in malicious hands in the event of a data breach.

Banks need advanced privacy measures with data redaction to mitigate attack risks and remove sensitive information.

Redaction Challenges and Limitations for Banks

Banks have various redaction issues because of the sensitive material they manage and the regulatory environment they work in.

Some of the key challenges include:

Diversity and Volume of Documents

Banks deal with tremendous amounts of data, including transaction records, legal agreements, and financial statements.

Securing the data and preventing breaches can be challenging and time-consuming.

Ensuring Accuracy and Precision in Redaction

Precision redaction is crucial in the banking industry to avoid any disclosure. Failing to comply with accurate redaction can put banks in hot water.

Emerging Threats

Banks and other financial institutions must keep up with evolving technology and cyber threats. That is why a redact tool is necessary to address vulnerabilities, rising cyber risks, and privacy challenges.

Integration Capability

There are various departments and models within the banking system. Banks need a robust redaction model that can integrate with their existing applications and models.

Understanding Redaction Tools in the Banking Sector

Redaction tools are software applications that selectively remove or alter sensitive and confidential information from videos, audio, images, documents, etc.

Primarily, data redaction software aims to safeguard restricted information and ensure that it remains safe, especially when sharing a document or making it public.

Besides that, here are a few reasons banks turn to redaction applications:

  • To protect sensitive information from disclosure and unauthorized access.
  • Banks redact sensitive information to comply with privacy regulations and laws.
  • Redaction allows banks to share documents without any sensitive data. Besides, they can also use the PII redaction feature to remove any information that can narrow down to one's identity that has sensitive information.
  • Banks can use AI-backed redaction software to remove all information that is not relevant to the case, such as faces, number plates, PII, PCI, NPI, PHI, and so on.
  • Redaction process smoothens document collaboration by allowing users to share information without revealing sensitive content during the review process.
  • Banks can redact restricted data and mitigate data breach risk, identity theft, and other cyber threats.

What Information Needs to be Redacted by Banks?

Banks hold a vast amount of data, meaning they shoulder a lot of responsibility to safeguard it. Typically, the documents that are put through redaction tools include:

  • Redaction software is commonly used in legal settings to protect sensitive information in contracts, legal transcripts, and court documents.
  • Redaction secure financial statements, transaction records, and other confidential data.
  • Banks also deal with medical data; they use redaction to ensure patient privacy and comply with healthcare privacy regulations.
  • Banks must redact crucial government data to safeguard national security and protect individual privacy.

How do Redaction Tools Contribute to Data Security?

Here is how redaction tools contribute to data security in banking sectors.

Removing Sensitive Information with Redaction Tools

Redacting confidential data enable users to erase specified content from a document, such as financial information, classified facts, or personal information. Thus, it is made sure that only pertinent and non-sensitive data is exchanged or revealed.

Preventing Unauthorized Access

The redaction procedure allows banks to prevent unauthorized individuals or entities from accessing confidential data. Even when sharing and authorizing the files, redacted content remains hidden.

Regulatory and Legal Compliance

A Redact tool assists banks in complying with legal and regulatory requirements. Redaction ensures that sensitive information is adequately protected, reducing non-compliance risk and associated penalties.

Protecting of Financial and Personal Data

Redaction techniques are essential for protecting financial and personal data in the banking industry. They assist in hiding account numbers, social security numbers, and other private information to protect customers' confidential information.

Mitigating Data Breach Risks 

As mentioned above, data breaches have significantly threatened the entire financial structure. Redaction tools mitigate the risk by preventing inadvertent disclosure of sensitive information that could lead to identity theft, fraud, or other security incidents.

Secure Data Sharing

With redaction, organizations can securely share documents and other digital media files with stakeholders, clients, and the public.

Preserving Document Integrity

The design of redaction software ensures the protection of classified information and the preservation of the original document. The document's structure, context, and overall format remain the same.

Regulatory Compliance for Banks in the USA and the Need for Redaction Tools

Banking establishments working in the USA must meet several regulatory requirements to ensure the stability of their financial system and protect consumer data.

Following are the primary regulatory bodies that US banks must comply with

PCI DSS (The Payment Card Industry Data Security Standard)

The Payment Card Industry Data Security Standard, or PCI DSS, is a collection of conditions that ensures all establishments that process, transmit, or store cardholder data should foster a secure and sound environment for handling confidential information.

Redaction can help banks meet many of the PCI compliance requirements. It assists them in protecting cardholders' data, becoming part of secure systems and applications, and maintaining general security policies for all personnel.

Those who fail to protect or redact credit card data can have monthly penalties from $5000 to $10000.

SWIFT CSP (SWIFT Customer Security Program)

Almost every bank uses the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system for secure transactions worldwide. It provides quick and secure international transaction services.

Banks using SWIFT must comply with their CSP requirements, which include data privacy, incident response, and data protection measures.

Moreover, banks can achieve the CSP objectives by redacting confidential credentials, transaction details, customer information, etc.

ISO/IEC 27001

ISO/IEC 27001 is not mandatory in many countries but is highly recommended. It shows that the establishment is credible and trustworthy.

ISO 27001 is a leading ISMS (Information Security Management Systems) standard. As banks and financial institutions are constant targets of cyberattacks, ISO compliance helps organizations, including banks, become aware of the risks and data theft.

Redaction tools allow banks to comply with ISO/IEC 27001 by safeguarding confidential information and mitigating data security risks. Since it is a well-recognized international standard, banks should comply with ISO 27001 guidelines.

There are many compliances like FERPA, FOIA, and others that banks also need to comply with. Redaction can help them to comply with a wide range of regulatory bodies and standards.

How VIDIZMO Redactor Helps Banks in the USA with Data Security and Compliance

Considering the above challenges regarding data security, compliance, and risk management, VIDIZMO's Redactor is the game changer in the industry and a leading video redaction service in the market.

It addresses the mainstream issues that financial institutions face. The following are the core features of the VIDIZMO Redactor.

OCR Redaction

Since we know that banks must deal with a mountain of files, they need a solution that uses AI redaction capabilities. VIDIZMO's redaction capabilities include an OCR feature that auto-detects information from handwritten documents and images.

Bulk Redaction

Banks can use the redactor tool to bulk redact various media files when dealing with considerable data. The best part is that VIDIZMO Redactor offers an all-in-one video, document, images, and audio redaction software.

Censor PII Files

VIDIZMO Redactor auto-redacts PII information from consumer call recordings that banks often keep to maintain customer experience. Besides that, they can also redact Personally Identifiable Information from video files via a redacted video tool.

Role-Based Access Controls

Managing roles and responsibilities is crucial to maintain security and compliance needs. Banks can manage access roles and safeguard essential information.

Limited URLs/IP/Domain Restrictions

With VIDIZMO Redactor, banks can restrict access to specific IPs, Domains, and URLs. This allows them to maintain limited access to particular roles and foster data security.

And these features are just the tip of the iceberg, there are many features to ease the redaction process.

Overall, Redaction tools are pivotal in mitigating risks and ensuring PCI DSS and ISO/IEC 27001 compliance. In an ever-evolving digital landscape, leveraging advanced redaction capabilities fortifies banking defenses and safeguards sensitive information.

For more information, feel free to reach out or visit our website. Also, we urge you to check out our 7-day free trial (no strings attached—no credit card required!)

Frequently Asked Questions (FAQs)

What are the rules for redacting documents?

To redact a document, consider three things. Precision, complying with regulations, preserving document integrity, and using the right redaction tools. 

How to redact PDF information?

You can use the VIDIZMO Redactor tool to edit a PDF. You can search for specific words, PII, and other confidential information and remove it from the PDF while maintaining its integrity.

What does redaction mean?

Redaction means removing sensitive information from documents (audio, video, text) by using redaction tools, so that the document can be shared and utilized without compromising confidentiality.

Is redaction permanent?

Yes, redaction Is permanent, so you can't revert to the original form. Therefore, it would be ideal to create a copy on VIDIZMO Redactor and then redact to have both instances at your disposal.

What is the purpose of redaction?

The primary purpose of redaction is to remove sensitive information for data privacy and create transparency.