Addressing the Challenges of Data Security and Privacy in Cloud-Based Financial Systems

Abstract

Cloud computing has brought about a paradigm shift in the financial sector, delivering enhanced scalability, economic efficiencies, and greater operational flexibility. Nevertheless, this technological evolution introduces considerable security and privacy imperatives that financial institutions must diligently confront. This analysis will delve into the distinct security hazards confronting cloud-integrated financial infrastructures, encompassing data breaches, sophisticated persistent threats, and susceptibilities inherent in multi-tenant architectures. Furthermore, it will examine the intricate regulatory framework, where mandates such as the General Data Protection Regulation (GDPR), the Payment Card Industry Data Security Standard (PCI DSS), and cross-border data transfer limitations significantly influence cloud deployment decisions. This discourse will also articulate crucial data safeguarding methodologies, including encryption, tokenization, and the zero-trust paradigm, in conjunction with robust identity and access management protocols like multi-factor authentication and privileged access management. Finally, it will elaborate on the comprehensive monitoring, detection, and incident response capabilities vital for upholding security within cloud environments, underscoring the pivotal role of Security Information and Event Management (SIEM) systems, behavioral analytics, and automated incident remediation workflows in protecting sensitive financial information.