Data Security Tips for Financial Records

Benchmark Ledger Solutions

Oct 8

3 min read

Financial records are one of the most valuable targets in your business. Bank details, payroll data, tax filings, and customer payment information all live in the same files your team touches every day. Protecting them does not require a technical background. It requires a few consistent habits, applied every time.

1. Turn on multi-factor authentication everywhere

A password alone is not enough. The Cybersecurity and Infrastructure Security Agency (CISA) reports that using multi-factor authentication makes an account 99% less likely to be compromised. Using Multi-Factor Authentication (MFA) is a powerful way to protect yourself and your organization. The use of MFA on your accounts makes you 99% less likely to be hacked. This single step should be required on every account tied to your finances: banking portals, accounting software, email, and payroll systems.

2. Know where your human risk sits

Most breaches do not start with a sophisticated hack. Verizon's 2026 Data Breach Investigations Report, which reviewed over 22,000 confirmed breaches, found that the human element was present in 62% of breaches, a slight increase from the previous year's 60%. That means the most effective security investment for most businesses is training your team to recognize suspicious emails, verify payment requests by phone, and avoid reusing passwords.

3. Restrict access to what people actually need

Not everyone on your staff needs access to every financial file. The Federal Trade Commission's guidance for businesses is direct on this point: sensitive data should be segregated, and access should be limited to employees who need it to do their jobs. Segregate sensitive data and limit access, and grant employees access only on a "need-to-know" basis. The FTC has taken enforcement action against companies that failed to do this, including a case where a business's failure to restrict access allowed thousands of consumer files to reach unauthorized parties.

4. Encrypt financial data, especially in transit

Whenever financial information is sent electronically (invoices, bank details, tax documents), it should be encrypted. The FTC recommends using Transport Layer Security (TLS) or another secure connection any time credit card numbers or other sensitive financial data are transmitted. When you receive or transmit credit card information or other sensitive financial data, use Transport Layer Security (TLS) encryption or another secure connection that protects the information in transit. Sending unencrypted financial data by regular email is a common and avoidable mistake.

5. Back up your records the right way

Ransomware does not just steal data; it locks you out of it. CISA recommends the 3-2-1 backup rule as the baseline standard: three copies of your data, on two different types of storage, with one copy kept offsite or offline. The 3-2-1 rule is a trusted guideline... Use a combination of on-site and remote backups. Backups should run automatically and be tested periodically to confirm they actually restore your data when needed.

6. Follow the rules that already apply to you

If your business handles customer financial information, you are likely already covered by federal requirements. The FTC's Safeguards Rule requires many businesses to maintain a written information security program suited to their size and the sensitivity of the data they hold. Your information security program must be written, and it must be appropriate to the size and complexity of your business, the nature and scope of your activities, and the sensitivity of the information at issue. For a broader framework, the National Institute of Standards and Technology (NIST) offers a free Cybersecurity Framework built specifically for organizations with limited security resources. This guide provides small-to-medium-sized businesses (SMBs), specifically those who have modest or no cybersecurity plans in place, with considerations to kick-start their cybersecurity risk management strategy by using the NIST Cybersecurity Framework (CSF) 2.0.

The bottom line

None of these steps require an in-house security team. Multi-factor authentication, limited access, encrypted transmission, tested backups, and a basic written plan cover the majority of what regulators expect and what attackers actually exploit. Start with these, and you have addressed the risks that matter most.