4 Methods to Prevent Data Leakage via the Online Banking Platform

The ability to securely exchange documents within digital banking solutions plays a pivotal role in generating revenue and building relationships with both business and retail account holders. With multiple file-collection touchpoints existing outside of typical workflows, financial institutions without document-sharing protocols expose themselves to data leakage moments that could cost them millions. 

While existing digital workflows may have some functionality to collect documents, product limitations or human error can lead to communication frustrations and data leakage threats during interactions between employees and customers or members.  

According to a Verizon study, 43% of breaches caused by miscellaneous errors stem from sending information to the wrong recipient, highlighting the critical need for enhanced security measures. Traditional methods of collecting and sharing files with personally identifiable information (PII), such as email and unsecured cloud services, pose significant risks of data leakage and breaches.

With the cost of data breaches averaging $4.45 million in 2023, it’s essential to invest in easy-to-use tools that promote security-centric connectivity between your workforce and your account holders.

Here are four methods financial institutions can use to prevent data leakage, improve employee productivity, reduce application abandonment, and increase satisfaction. 

1. Collect Files from Users Inside Your Digital Banking Solutions

Customers and members demand all interactions with their financial institutions be simple, fast, and seamless. This means they should be able to securely share the files you require, on their preferred device, through the digital channel they most frequently use with their bank or credit union: online banking. 

By leveraging advanced encryption and data access controls, sharing and collecting files inside the online banking platform ensures: 

• • Files with PII are exchanged behind multiple layers of security.
  • Account holders can use their mobile device or desktop, rather than visiting a branch.
  • Users can always see exactly what has been shared to and from their financial institution.
  • A secure platform to store users’ most important information with their bank or credit union. 

IBM reports that 51% of organizations are planning to boost security investments because of a data breach. If you’re revamping your cybersecurity efforts, start with data leakage prevention best practices.

This approach mitigates the risks caused by employees sharing and receiving files from potentially harmful actors and enhances regulatory compliance and increases customer trust. 

By providing a methodology to share files within the online banking platform, financial institutions can save time and money by going paperless as well as increase the amount of activity with your mobile and desktop applications.

2. Flexible Sharing Options to Attract New Account Holders

Firewalls, lack of tools, and reliance on physical mail or fax machines not only annoy account holders trying to complete transactions, but also hinder employees from completing their internal goals. Without the secure sharing tools in place, many employees take simplifying the process into their own hands.

Over 56% of U.S. employees currently use personal file-sharing systems such as Google Drive or Dropbox for work-related file sharing to make things easier for them—regardless of whether they are allowed to, a 2022 study finds.

When the exchange of sensitive documents—such as financial statements for small business loans—is challenging to complete, potential customers or members could consider other financial institutions with more digitally savvy protocols. 

Surveys indicate that executives believe leveraging technology to address application abandonment can yield substantial benefits: 26% foresee increased revenue, while an overwhelming 86% anticipate improvements in brand reputation. This optimism underscores the pivotal role of technology in transforming account holder acquisition processes.

Not all file-sharing services are built equally, especially when it comes to security. Here are six essential security practices financial institutions must consider when analyzing share link solutions:

1. 1. Built-in virus checker ensures employees can trust incoming files
   2. Pin code requirements on share links ensure the accurate recipients receive files that include PII
   3. File type restrictions controlled by the financial institutions
   4. Ability to cancel access to share links
   5. One-time file download to ensure only the correct recipient has a copy
   6. Date expiration to ensure files aren’t available without monitoring

It’s important to make a good first impression when working with future account holders, especially during the application process. This means enabling your employees to easily collect files from customers or members at any point in any transaction.

3. Secure Pathways for Partners Collaboration

Financial institutions working with examiners or marketing partners struggle to share large files with existing tools, with many still leveraging flash drives to complete projects. Unfortunately, malicious and accidental errors with Universal Serial Bus (USB) drives are still causing organizations massive headaches. As a result, many organizations have implemented cybersecurity protocols that eliminate the use of external USBs or hard drives.   

External drive threats include: 

• • Compromised device and user accounts by bad USBs
  • Data leaked via unencrypted devices
  • Networks infiltrated by infected devices
  • Data loss due to careless employees

Threats designed for USB exploits have risen from 19% to 51% from 2019 to now, according to Honeywell’s USB Threat Report 2024. Consider the USB Rubber Ducky, a favorite at the DefCon Hacking Conference. The USB Rubber Ducky looks like a normal flash drive, but when plugged into a computer it accepts keystroke commands like a human is typing. 

To remove the data leakage threat, financial institutions need to oust the USB drive and provide employees with a collaboration platform that meets FFIEC recommendation on file exchange. This is especially important if you’re looking for a tool to share thousands of files with examiners. 

The FFIEC recommends using a solution that:

• • Does not leverage third-party cloud providers. This leaves financial institutions vulnerable to unauthorized access to files.
  • Has strong encryption.
  • Doesn’t allow for alterations of files, even those without sensitive information, because of data integrity issues.
  • Isn’t difficult to set up or use.
  • Has continuous monitoring of data exposure.

Providing employees with a secure collaboration platform not only protects your bank or credit union from data breaches but also improves employee productivity; a metric that directly affects your bottom line. 

4. Aggregate Files Internally with a Secure Digital Vault

Implementing a centralized, secure collaboration platform for employees to connect internally and externally is the biggest plug to data leakage. This approach allows for tighter control and oversight compared to managing security protocols on individual devices, which often results in fragmented and inconsistent protection.

When selecting a solution, keep in mind that vendors are also susceptible to attack. The right collaboration platform should be built specifically to protect financial institutions, offering robust encryption, data access controls, private cloud services, and monitoring capabilities that are essential in safeguarding sensitive data. 

Any secure file sharing for financial services must help administrators adhere to strict compliance requirements. Among the many regulations that a secure file sharing for financial services solution must address are:

• • Financial Industry Regulatory Authority (FINRA) rules
  • Gramm-Leach-Bliley Act (GLBA)
  • Payment Card Industry Data Security Standard (PCI-DSS)  
  • Sarbanes-Oxley Act (SOX)
  • Securities and Exchange Commission (SEC) rules

Using a secure solution within the online banking platform to share and collect files internally and externally reduces the risk of costly breaches and legal ramifications. Employee productivity also improves, enabling confident collaboration for any project. 

Embracing Secure Document Exchange

The integration of Virtual StrongBox with Alkami’s digital banking solutions represents a transformative opportunity for banks and credit unions. By prioritizing secure document exchange, institutions not only enhance data security but also drive operational efficiency and elevate end user satisfaction. This strategic initiative positions financial institutions at the forefront of innovation, enabling sustainable growth and success in an increasingly digital world.

Interested in learning how secure document exchange can elevate your online banking platform?