May 29, 2019
OCIE Warns of Cloud-Based Server Security Risks
Last week, the Office of Compliance Inspections and Examinations (OCIE) discovered several security risks related to the storage of customer information by broker-dealers and advisers, particularly related to the use of cloud-based servers. The primary risk was found to stem from firms choosing not to utilize available security features on storage platforms.
To strengthen data storage security, OCIE recommends conducting ongoing review of storage solutions, drafting guidelines for properly configuring these systems, and implementation of comprehensive vendor management policies.
WHAT DOES THIS MEAN FOR ME?
A lack of security, including misconfiguration of data storage technology, poor oversight of vendor-provided network storage, and failure to scale security measures to protect data of different risk levels on cloud-based storage platforms, can leave data vulnerable to access by unauthorized persons.
Creating and implementing a dynamic cyber security program, aligned with Regulation S-P and S-ID requirements, is a key element in gaining client trust and maintaining a full compliance program.
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