As technology increasingly becomes a core element in business processes, legislation has evolved to address the risk that this brings to data breaches. Research by Gartner predicts that by the end of 2023, modern privacy laws will cover the personal information of 75% of the world’s population.
As a secured finance lender, you always need to be confident that your business is compliant. The consequences for non-compliance can be severe, including fines, tarnished reputation, sanctions, and even a personal criminal record, depending on your involvement. A study by Deloitte found that 87% of businesses felt they did not have enough staff to focus on compliance functions, meaning they were unable to meet increasing expectations.
Outdated and poorly maintained technology systems can also put you in danger of cybersecurity threats. If your systems aren’t compliant when an attack happens, you could be in hot water.
Should I be worried about cybersecurity threats?
Since the first computer virus was created in the 1970s, there has been a long history of cyberattacks, although many of the early attacks did not have the same impact as they do today. In 1988, Robert Morris created the first computer worm that rapidly infected an estimated 6,000 computers connected to the internet. As technology continues to advance, cybercriminals find new ways to exploit devices and trick victims. They can now infect a far wider radius if they target a big enough company, and this could enable them to infiltrate billions of accounts and records of data.
Running legacy and outdated software and not keeping up-to-date backups of your data can both lead to weaknesses that are easy to exploit in an attack. If you haven’t taken reasonable precautions to ensure your data is protected, not only can the attackers cause financial disaster, but you may have also failed to meet cybersecurity regulations.
You won’t need to worry if the software you use is secure. The Solifi Open Finance Platform meets AICPA standards for SOC 1 and SOC 2 Type II year-on-year.
What are some examples of data protection regulations?
- General Data Protection Regulation (GDPR) – This regulation covers how data should be stored and managed across the European Union, with individuals having more control over how their personal data is used. While your business may not be headquartered in the EU, you will be expected to comply with any business you undertake in any EU Member State.
- Personal Information Protection and Electronic Documents Act (PIPEDA) – This Canadian Act is similar to GDPR, aiming to allow individuals more control over their personal data. It applies to all private-sector organizations that handle personal data outside of Quebec, Alberta, and British Columbia (which all have their own set of legislation).
- California Consumer Privacy Act (CCPA) – This regulation gives consumers the right to know about how their personal information is used, with the opportunity to opt-out of the sharing of this information and the right to delete it. This only applies to residents of California, however other states are now following suit by introducing their own privacy laws.
- New Zealand Privacy Act – Alongside giving individuals more control over their data, agencies are required to hire a minimum of one privacy officer. This is more principle-based than GDPR’s rule-based requirements, meaning that the legislation is not a one-size-fits-all.
How can I make sure I’m compliant?
It can be hard to keep up with the latest legislation and regulations, especially if you’re a company that operates across multiple jurisdictions.
With automation, you can be assured that your business is compliant without the constant need to monitor the backend of your system. The Solifi Open Finance Platform automates updates, so you will always be running the newest, most secure version of the software at all times, with no disruption to services. Solifi’s software can also automate calculations for you, using tools to simplify the shift from LIBOR to SOFR and calculate interest and fees, which can reduce the risk of compliance issues.