How Finance Companies in Australia Can Protect Customer and Financial Data

Protecting sensitive financial data is a critical responsibility for accountants and finance firms, particularly given the rising number of cyber threats.

With the rapid adoption of digital banking, fintech innovations, and the increased use of cloud services, the financial sector's attack surface has expanded. This complexity makes it challenging to secure all potential entry points, making financial institutions more vulnerable to cyberattacks.

Implementing robust security measures not only protects client information but also ensures compliance with Australian laws and standards.

This guide covers essential methods for safeguarding financial data and highlights relevant Australian policies and tools to help finance institutions protect their data.

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Why Are Financial Institutions a Target for Hackers?

Financial institutions hold vast amounts of sensitive data, making them prime targets for cybercriminals. Hackers aim to steal personal information, financial records, and payment details, which can be sold or used for fraud. Some reasons account and finance firms may be a target for hackers are:

• They contain high-value data of many people
• There are increasing entry points for hackers due to an increase in digital banking, cloud services and apps in finance
• Meeting strict regulations while maintaining strong cybersecurity measures may be a struggle for some smaller institutions, making them easier targets

The finance sector in Australia has also experienced consistent growth over the past few years.

The market size of the finance industry in Australia was estimated at AUD $422.9 billion in 2024, with a steady compound annual growth rate (CAGR) of 4.0% over the past five years.

These figures reflect the Australian financial market's significant scale and profitability, underscoring why the sector is an attractive target for cybercriminals.

The details and further breakdowns can be found in the full reports from sources like IBISWorld and Australian FinTech.

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Where Is Sensitive Customer and Financial Data Held?

Sensitive customer and financial data is typically stored in several key locations within financial institutions, including cloud environments, on-premise databases, internal systems, and sometimes third-party service providers.

This data can include a range of information such as personal identification details, transaction histories, account balances, and payment information. Financial institutions store this data to ensure seamless access for banking services, compliance with regulations, and efficient handling of transactions.

As financial institutions increasingly adopt cloud-based solutions and digital banking services, their attack surface expands, creating more potential entry points for cybercriminals. Cloud environments offer flexibility and scalability but can introduce vulnerabilities if not properly secured. On-premise databases and internal systems, while offering greater control, are also vulnerable to sophisticated attacks, particularly if they lack adequate encryption, access controls, and regular security updates.

For hackers, these data repositories represent highly valuable targets. By compromising these systems, cybercriminals can steal personal and financial information to sell on the dark web, commit fraud, or conduct identity theft.

The decentralisation of data storage—spread across various systems and locations—makes it harder to protect, increasing the likelihood of breaches if robust security measures are not in place.

Therefore, ensuring strong encryption, multi-factor authentication (MFA), and continuous monitoring of these data sources is critical for minimising the risk of attacks.

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5 Best Security Practices for Finance & Accounting Firms

1. Implement Strong Access Controls

Access controls are vital in managing who can view or modify sensitive financial data. Implementing role-based access ensures that only authorised personnel have access to specific information, reducing the risk of data breaches.

Actionable Steps:

• Use role-based access control (RBAC) to limit permissions based on user roles.
• Employ Multi-Factor Authentication (MFA) to add an extra layer of security.
• Regularly review and update user permissions.

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2. Encrypt Data at Rest and in Transit

Encryption is a critical practice to protect data from unauthorised access. Ensure that all sensitive data, whether stored on servers or being transmitted over networks, is encrypted.

Actionable Steps:

• Encrypt sensitive data on storage devices and during data transfer.
• Use secure communication protocols like TLS/SSL for data in transit.

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3. Educate Employees on Security Policies

Human error is a leading cause of data breaches. Regular training on the latest cybersecurity threats can significantly reduce the risk of incidents caused by phishing or social engineering attacks.

Actionable Steps:

• Conduct monthly security training sessions.
• Use phishing simulations to educate employees on recognising malicious emails.
• Update training content regularly to cover emerging threats.

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4. Implement Data Loss Prevention (DLP) Policies

DLP policies help prevent the accidental or intentional sharing of sensitive data outside the organisation. By monitoring and controlling data flows, you can ensure that confidential information does not leave the network without proper authorisation.

Actionable Steps:

• Set up DLP policies to monitor and restrict the sharing of sensitive data.
• Use content inspection to detect sensitive information in emails or files.
• Implement alerts and automated responses for policy violations.

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5. Advanced Threat Protection

Deploying advanced threat protection solutions can detect and mitigate complex cyber threats like malware, ransomware, and phishing attacks. These tools provide real-time analysis and responses to security incidents.

Actionable Steps:

• Use threat intelligence to stay informed about the latest cyber threats.
• Employ automated tools to detect and respond to unusual activity.
• Conduct regular threat assessments to identify vulnerabilities.

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Recommended Microsoft Tools for Data Protection

To strengthen data protection across your organisation, leveraging Microsoft tools can significantly enhance your security posture.

By integrating these advanced solutions, you can safeguard sensitive information, detect potential threats, and ensure compliance with regulatory standards. Below are some recommended Microsoft tools that can help you achieve these objectives:

1. Azure Information Protection: Helps classify, label, and protect sensitive data.
2. Microsoft Defender for Identity: Detects and investigates advanced threats in hybrid environments.
3. Microsoft 365 Purview Compliance Manager: Assists in meeting regulatory requirements with automated risk assessments and controls.

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Australian Cybersecurity Compliance for Financial Institutions

In Australia, finance firms must also comply with several laws and standards to ensure data protection:

1. Privacy Act 1988: This Act regulates the handling of personal information and includes provisions for the protection of financial data.
2. Notifiable Data Breaches (NDB) Scheme: Under this scheme, organisations are required to notify affected individuals and the Office of the Australian Information Commissioner (OAIC) of data breaches that could result in serious harm.
3. Essential Eight: Developed by the Australian Cyber Security Centre (ACSC), the Essential Eight is a set of baseline strategies to help organisations mitigate cyber security risks.

For comprehensive guidelines on these laws and cybersecurity best practices, visit the Australian Cyber Security Centre's Website.

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Strengthen Your Finance Company’s Data Security with Superior IT

Protecting sensitive financial data requires more than just technology—it calls for a strategic approach involving policies, employee training, and advanced security tools.

At Superior IT, we have over 50 years of experience in implementing robust solutions like access controls, encryption, and threat protection tailored to the finance sector. Contact Superior IT today and get tailored managed IT services for your finance business.

Call us at 1300 93 77 49 or email info@superiorit.com.au to schedule a free discovery call with our SharePoint experts.