Financial Data Security

Financial data security for information contained in email is a critical concern for financial services companies. Like most businesses, financial services organizations rely on email for communication between employees, customers, partners and vendors, and frequently these messages contain highly sensitive content and personally identifiable information (PII). That exposure is tied directly to business risk, with 46% of cyber-risk leaders ranking ransomware as their top data security concern.

Because this information is so valuable, attackers frequently target email systems in financial services using email-borne threats like spear-phishing and impersonation. 

Consequently, financial data security and email retention is highly regulated, and financial services compliance with FINRA email retention or SEC email retention requirements , for example, is essential for avoiding steep fines and penalties.

What is finance data security?

Finance data security is the practice of protecting financial information from unauthorized access, misuse, alteration, loss, and disruption across its full lifecycle. In practical terms, it covers the policies, tools, and day-to-day processes used to protect sensitive financial data stored or shared by a financial institution.

It also sits at the intersection of cybersecurity, privacy, compliance, and business continuity. A strong program is not limited to perimeter defense. It also covers who can view data, how it is transmitted, where it is retained, how it is recovered after a security incident, and how the organization reduces both outside attacks and insider threats.

Core elements of data security

At the center of financial data security are three foundational principles that shape how organizations protect sensitive information. Together, they help explain what strong protection looks like in practice and why each element matters across daily operations, compliance, and risk management.

• Confidentiality – Only authorized users, systems, and business partners can view protected data. In the finance context, that includes limiting exposure of customer data, account details, statements, tax forms, and other high-risk records through access controls, data encryption, and segmentation.
• Integrity – The data stays accurate and trustworthy. Financial workflows depend on records that have not been tampered with, whether that is a payment instruction, a balance sheet, or an archived email used in an audit or legal review.
• Availability – The right people can access the data when they need it. That matters for customer service, fraud response, regulatory requests, and routine operations. It also means building resilience through redundancy, tested data backup processes, and recovery planning so a disruption does not become a prolonged business outage.

NIST guidance on ransomware recovery highlights the value of clean backups and restoration planning, while the FTC Safeguards Rule requires covered firms to include safeguards appropriate to their size, complexity, and risk profile.

Types of financial data

The category of financial data is broader than transaction records alone. It often includes:

• Cardholder data and payment details used in billing, payments, and reconciliation
• Financial records such as statements, invoices, tax forms, audit materials, and loan documents
• Customer onboarding files containing personal information and regulated account data
• Internal reports, forecasts, and treasury data that influence decisions across the business

• Email content and attachments shared with clients, vendors, auditors, and regulators

Many organizations also hold blended datasets that combine financial information with personal data, such as names, addresses, government identifiers, account numbers, or employment details. That overlap raises the stakes because a single compromise can affect privacy, cyber fraud risk, and compliance at the same time.

Common financial data security measures

Financial organizations usually need layered controls rather than one standalone fix. The most effective approach combines technical safeguards, access governance, and ongoing oversight so sensitive systems and records stay protected in daily operations.

Strong encryption

Encryption helps protect financial data when it is stored, transferred, or archived. It reduces exposure by making information unreadable to unauthorized parties, which is especially important for email, cloud platforms, file transfers, and databases that hold account details, payment information, or customer records.

Rigorous access controls

Access controls limit who can view, edit, move, or share financial information. Strong role-based permissions, least-privilege access, and approval workflows help reduce unnecessary exposure and make it harder for both outside attackers and internal users to reach sensitive systems without a valid business reason.

Secure password policies

Password security still matters, even in environments that also use stronger identity tools. Organizations should require unique passwords, enforce strong password standards, limit reuse, and support multi-factor authentication so compromised credentials are less likely to lead to unauthorized access.

Security audits

Regular security audits help organizations evaluate whether their controls are working as expected. They can uncover gaps in configurations, policies, user access, vendor risk, and monitoring practices before those weaknesses turn into compliance and security issues.

Regulatory compliance

Compliance is a practical part of financial data security, not just a legal checkbox. Security programs should align with the rules that apply to the business so retention, privacy, access control, monitoring, and reporting practices support both protection and regulatory obligations.

Explore Mimecast’s compliance solutions.

Finance data security laws and regulations

Financial data security laws and regulations are designed to reduce risk around how financial information is collected, stored, transmitted, and retained. They also reflect how closely compliance and operational risk are tied. In a survey of cyber-risk leaders, 41% ranked meeting data security compliance requirements fourth among their board’s top concerns.

The Payment Card Industry Data Security Standard (PCI DSS)

PCI DSS applies to organizations that store, process, or transmit payment card data. It sets requirements for protecting cardholder data through controls such as secure configurations, restricted access, monitoring, and regular testing.

The Gramm-Leach-Bliley Act (GLBA)

The Gramm-Leach-Bliley Act requires certain financial institutions to protect customer information and explain their information-sharing practices. Its Safeguards Rule is especially important because it requires covered organizations to maintain a written information security program built around the risks they face.

The Sarbanes-Oxley Act (SOX)

SOX focuses on the accuracy and integrity of financial reporting, but it also affects how organizations manage records, controls, and accountability. For many companies, that means maintaining secure systems and documentation that support reliable reporting and reduce the risk of tampering or data loss.

Securities and Exchange Commission (SEC) rules

SEC rules can affect how regulated firms preserve records, supervise communications, and manage financial cybersecurity-related responsibilities. For financial services organizations, that often means treating email retention, governance, and security oversight as part of a broader compliance and risk management program.

Best practices for financial data protection

Protecting financial data requires more than isolated tools or one-time fixes. Strong protection comes from consistent policies, layered controls, and regular oversight across the full data lifecycle.

Build a clear data governance framework

Financial organizations need a defined approach for how financial data is collected, stored, accessed, shared, and retained. Strong data governance helps reduce confusion, supports accountability, and gives teams a more consistent way to protect sensitive financial information across departments and systems.

Limit access based on business need

Access to sensitive financial data should be restricted to employees, vendors, and systems that genuinely need it. Role-based permissions, least-privilege access, and regular entitlement reviews help reduce the risk of unauthorized access and limit the impact of insider threats or compromised accounts.

Strengthen authentication and password controls

Strong password standards should be paired with multi factor authentication to better protect financial records and customer data. This lowers the chance that stolen credentials can be used to access critical systems, especially in environments handling payment data, personal information, and other high-value assets.

Encrypt data in storage and transit

Financial data protection should include strong encryption for data at rest and in transit so exposed systems or intercepted communications do not immediately lead to a data breach. Encryption is especially important for financial institutions that move sensitive information across cloud platforms, email, internal systems, and third-party tools.

Future trends in financial data security

Financial data security is continuing to evolve as threats, technologies, and compliance demands change. Organizations need to prepare for a future where protection depends on stronger visibility, faster response, and more adaptive security strategies.

Greater use of AI in threat detection

Financial institutions are increasingly using AI and analytics to identify suspicious activity faster and improve response times. These tools can help detect unusual access behavior, fraud patterns, and early signs of a security incident before they escalate into larger operational or compliance problems.

Stronger focus on identity and access security

As the financial sector becomes more digital, identity is becoming a central part of financial security. Future strategies will likely place even more emphasis on continuous authentication, adaptive access, and tighter controls around privileged users, third-party access, and remote work environments.

Expanded data privacy and compliance demands

Regulatory expectations around data privacy, consumer rights, and security controls are continuing to grow. Financial organizations should expect more pressure to prove how they protect personal data, manage access, respond to breaches, and align with laws such as the California Consumer Privacy Act and the General Data Protection Regulation.

Increased protection against insider and third-party risk

Future financial data security programs will need to address not only external cyber threats but also insider threats and vendor-related exposure. Monitoring how sensitive financial information moves across users, devices, and external partners will become more important as ecosystems grow more connected.

Managing financial data security effectively and cost efficiently requires powerful security, archiving and eDiscovery tools that can thwart cyber attacks, streamline retention management and minimize administrative burden for IT teams. That's where Mimecast can help.

• Protecting against email-borne security threats. Mimecast blocks targeted threats, malicious URLs, weaponized attachments and other sophisticated attacks, in addition to spam, malware and viruses.
• Stopping data leaks. Mimecast prevents malicious and inadvertent leaks through content control technology.
• Sending email and large files securely. Mimecast lets users send secure messages and large file attachments (up to 2 GB) from their email inbox, without requiring knowledge of encryption methods.
• Streamlining email archiving.  Mimecast simplifies email archiving and retention policy with a cloud-based archive, lightning-fast search tools, and e-discovery and case management tools for streamlining legal and FINRA compliance tasks, for example.
• Ensuring email continuity. Mimecast enables users to continue using email and to access archives when primary email servers are down.

Mimecast provides an all-in-one solution for email security, archiving and continuity. Delivered as a SaaS-based subscription service, Mimecast's solutions enable organizations to immediately address financial data security without capital investment in email infrastructure.

Strengthening Financial Data Security in a Changing Risk Environment

Financial data security depends on more than meeting compliance requirements. It requires a practical strategy that protects sensitive records, limits unnecessary access, strengthens resilience against cyber threats, and keeps pace with how financial organizations store, share, and use data.

As attack methods, regulatory expectations, and digital workflows continue to change, financial institutions need controls that support both protection and continuity. Mimecast helps organizations strengthen that effort with cloud-based solutions for email security, data loss prevention, secure communications, archiving, and continuity.