Banks must have proper data backup for their network and systems.

South Korea fortifying data backup

Stephen Perkins

Banks in South Korea are looking to improve their data backup solution, according to ZDNet, as the country's financial regulation body will require a two-pronged networking system to avoid cyber attacks and leaks. The Financial Services Commission said large banks will need to separate their systems for both internal and external use. The first system must be operational within the next year, but the network system for headquarters and branches will likely take a little bit longer.

"The move comes as efforts to ensure a safe online network system are one of the top priorities for South Korean financial firms, after some Web sites including Shinhan Bank were hacked by an unknown malware in late-March this year," the news source said.

Financial institutions without a quality data backup solution may end up suffering big losses, as SC Magazine reported that TD Bank lost two backup computer tapes and did not alert customers until six months later. It was not announced how many were affected by the breach, but it was not good news for the bank's approximately 1,200 branches and more than 7 million customers. There was a free year of credit reporting offered to customers, but it would have been a non-issue with better data backup.

Categories: Data Protection