We are constantly on the internet, reading articles, downloading apps, accepting cookies and thus privacy has been a significant issue these days. According to a RiskBased Security Report, there is a substantial growth of Data Breaches in 2020. The number of valuable data that was exposed in the first quarter of 2020 spiked to 8.4 billion. It is about a 273% increase in numbers as compared to the first quarter of 2019.
However, as we step up by using technology as a saviour to such incidences, RegTech as a framework follows the laterals of data protection and legal compliance. But how does it prevent such cyberattacks and threats? This blog will help you understand how RegTech is ensuring data protection and eliminating privacy concerns for banks, businesses and enterprises?
What is a Cyberattack? Is it this common?
A cyberattack is known to be a malicious act that steals data or disrupt any digital life for businesses or institutions. It includes threats like computer viruses, Denial of Service (DoS) and data breaches. To answer the question, cyberattacks have become common in these present times. While there are various reasons that contribute to this factor. Let’s look at the most known reasons.
1. Lack of awareness about cybersecurity
There is a serious need a cybersecurity awareness in businesses, even people. The understanding of data privacy security is an issue that must be dealt with immediate effect. Prioritize security over other factors. Invest in tools, technology and software that provide premium security to your data. Improve governance and design data management strategies that narrow down such risks.
2. System Vulnerabilities
To detect system vulnerabilities, businesses must identify the patterns of Cybercriminals. These hackers are prone to spot blind spots and outline its faultline, thus crawling to the core of the flaw. There is no better way to intercept such occurrences than to precast policy that acts against it. Update your software, explore data surveillance tools, hire professionals to keep a check on activities etc.
3. The inability of Assessing cyber-risk
Check out the best Risk Assessment Methodologies suitable for your business. Implementing quantitative measures is ideal for sustenance and maintenance.
“In 2020, breaches are the digital pandemic proving to be just as insidious and difficult to stop as Covid-19. Cyberattacks on healthcare facilities alone in the U.S. for the year 2020 have affected 17.3 million people in 436 breaches tracked by the U.S. Department of Health and Human Services (HHS) Breach Portal.”– Forbes
It is an alarming situation and according to the predictions by Forbes, “55% of businesses are planning to increase their cybersecurity budgets in the year 2021, and around 51% are investing on full-time cyber staff in 2021.”
How will RegTech combat this situation?
Cyber Interactions are becoming more complex daily; we need more stringed laws and regulations to smoothen this process of transaction. However, keeping up with this ever-changing compliance is not an easy task. Thus, RegTech lends help from Emerging Technologies to identify greater risks, strategize according to risk tolerance and govern regulatory requirements.
Features of RegTech to provide Cybersecurity
- Compliance- RegTech reviews all prevalent regulations and reports, tracks the potential impact of these regulations over the use rand implements data privacy laws.
- Protection against Fraud– It standardized a process that authenticates user ids and details. Having a meticulous process called Identity Management and Control helps filter unwanted or suspicious ids through KYC etc.
- Monitoring and Surveillance– It keeps a close eye on any financial transactions and checks against money laundering and terrorist financing through Blockchain.
- Analysis for Future Risks– It combines various information through its records to analyze the scenario and strategize against the risk of any unpleasant occurrences. This process is known as Risk Management.
- Reporting– RegTech is utilized to generate and distribute real-time reports and information required by regulators. This entitles regulators to share data within a secure space.
Irrespective being the nascent stage, it is established that there is a lot that RegTech qualifies to deliver. The way in which RegTech is helping to support integration into the current regulatory structure, it indeed will play a vital role in navigating both expansion and implementation stages. Big Innovation Centre, India is just a medium to help you understand the importance of RegTech, and we are doing so through our regular webinars. If you have missed our webinar on ‘Road to RegTech’ you can surely watch it here.
The demand for RegTech Professionals is at an all-time high and this might be great to select a RegTech Course that provides a comprehensive understanding of the subject. So, we have launched our ‘RegTech Programme’ for all who wishes to explore this Regulatory Technology up and close, making it a career choice. Make the best use of this time and learn something new. Be a Cybersecurity Professional today.