For Lenders

What You NEED To Know About Data Leaks

Jan. 24 2019

While we prepare for a big 2019, it’s crucial to remember that data security and compliance are key elements of maintained growth and success.

But there is another aspect of data security you should seriously consider: data leaks.

You could be leaking data, which can cause huge headaches for your business. Data leaks occur when internal data is transferred outside of your organization by employees or outside actors without authorization. They can come from a variety of sources, including rogue employees, faulty software, poor IT practices, or bad vendors.

There are a couple of precautions you should take:

  1. Limit employee data access and put monitoring tools in place
    Stay keenly aware of who has access to what data and put safeguards in place. For example, a rogue employee could download your list of leads and sell it to brokers or give it to list managers to benefit personally. When data is leaked like this, it leads to breached consumer information, lost revenue, and legal issues (including potential class actions).
  2. Ensure that your vendor contracts protect how data is used
    Internal controls are crucial, but it’s also important to know the details about your software vendors–their compliance attitude, contractual obligations, and overall reputation within the industry. Representations & warranties and indemnification obligations are critical when it comes to outside vendors, especially when the platform is used to collect or transmit sensitive data, like consumers’ non-public information.

Taking these protective measures can help you maintain tighter control over your data and potentially identify the source of any leaks should they arise. Leaked data can affect your revenue and open you up to legal liability. It’s better to prevent data leaks before they happen than try to deal with the fallout afterward. So stay vigilant, and safeguard your important data as we kick off 2019.


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