Data breaches and malware attacks have become common parlance in this digital age. Businesses are beginning to feel the heat, especially the outsourcing ones. India being the hub of the outsourcing industry amidst a global outsourcing industry which is valued at $232 billion, needs to fortify itself with appropriate data security systems in the wake of cyber-attacks.
KPOs form a very crucial segment of the outsourcing industry. The global KPO market size was estimated in 2022 to be USD 95.76 billion and is forecasted to touch USD 301.46 billion by 2030. The off-shoring business though are soft targets to cyber-attacks due to the large volumes of data that are transacted. Today outsourcing companies have integrated modernized digital technologies like SaaS and cloud to add to their brand value. Such rapid digital transformation, positions such businesses to be susceptible to malicious attacks’ need to maintain integrity and high standards of professionalism, hence they cannot afford to have a lackadaisical approach and will have to adopt measures to safeguard their clients’ vital information.
Data privacy is an absolute prerequisite, especially for KPO accounting firms, considering the quantum of financial data. In the event of data theft, loss of account numbers, or transaction details, PII (Personally identifiable information) takes place, apart from this it threatens business growth and affects the company’s reputation.
At GI Outsourcing, we gained experience as we have a lot of security measures in place when it comes to the confidentiality of data. As a service provider, we always believed in upholding very high standards and complying with the regulations laid out by GDPR (General data compliance regulation). We had always been on top of the game when it comes to the best accounting and security practices, but with our focus on automation and data security very early on and having a 360-degree perspective helped us in emerging as one of the forerunners in the accounting space.
Cloud security and in-premise security will need to be introduced to prevent designed attacks. Data security needs to encompass natural events and internal and external threat protection. As they say, security starts in your backyards, and internal security controls in the form of giving restricted access to confidential data to employees, need to be kept in check. Employees must also be denied unauthorized download of client data using external storage devices.
Accounting businesses need to survey their systems of data generation and storage to plug in any leaks. Firewalls and VPNs (Virtual Private Networks) need to be in place as a checkpoint to protect the organization’s private boundaries. As sensitive data is vulnerable, Cloud backup is extremely crucial, storing data in a physical location like the data drive is another alternative. In the event of the device being stolen security solution at the hardware level i.e., Whole disk encryption (WDE) will protect sensitive data on the drive. Endpoint security also helps in averting cyber fraud. Regular updates of operating systems like Windows, and installation of antivirus and antimalware systems need to be kept in check.
On-cloud areas of a firm also need to be under constant surveillance with timely updates and back-ups, like local storage, file settings, and remote work settings on devices. Computer networks and systems must be secure and must go through the essential layers of user authentication. Resorting to a Zero trust model for security solutions will help safeguard companies against cyberattacks.
Despite cloud accounting becoming popular, security issues are looming large. Unauthorized access into an organization’s cloud resources due to improperly configured security, gives attackers direct access to an organization’s data. Access control lists (ACLs) and Virtual Private Cloud (VPC) isolation are a few of the cloud security features which can shield confidential data. Top-end tools and software have security features like two-factor authentication, strong data encryption, and user authentication which also protects cloud data.
Firms must roll out policies pertaining to passwords, that state stringent requirements for framing passwords given that they form the first line of defense against data thefts. The frequency of phishing attacks and data breaches has become a commonality due to weak password security. With human error being one of the prime causes of data thefts, employee orientation becomes extremely crucial. The cyber essentials certification and the ISO 27001 will help in ensuring top-notch security standards.
This is the start of the next revolution led by AI and Machine learning and Data security will feature on the agenda of all Board rooms for the next few years.
Written by Vikas Chadha.
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