Hidden threats to global banking data security

In today's globalized financial environment, cross-language and cross-border operations have become the norm for financial institutions. Translation, as an integral part of daily operations, is often used to handle customer communications, contract signing, and other business needs. However, the risks associated with the transmission of third-party data involved in the translation process are often overlooked. These risks pose a serious challenge to information governance, which is a core element of maintaining customer trust, reducing risks, and complying with regulatory requirements.

Translation Risks in Financial Services

Financial institutions routinely handle sensitive customer data, including loan applications, contract documents, and personally identifiable information. When these documents need to be translated, passing them to a third party can bring potential risks of data leakage or regulatory compliance issues.

1. Risks of providing sensitive data to third parties

Banks often need to translate loan applications, mortgage documents, and other customer documents that contain sensitive information, such as social security numbers, account information, or identification. If this data is transmitted via unsecured means or if the translation vendor does not follow best practices when storing and processing the data, the risk of a data breach increases significantly.

To address this risk, financial institutions should implement information rights management (IRM) policies. IRM limits access to data by those who process documents, ensuring that translators cannot download, copy or screenshot sensitive information. At the same time, through traceable endpoint management, third-party workflows become more transparent and controllable, thereby reducing risks.

2. Risks of real-time interpretation and multilingual call centers

Interpreters play a critical role in helping non-native speaking customers complete complex transactions, answer questions or speak with bank staff. However, unregulated remote working models can lead to the accidental disclosure of sensitive information.

To mitigate risk, many risk-conscious banks are adopting a centralized interpretation model, where interpreters work in a controlled office environment and cannot use recording devices or external materials to ensure data security.

3. Risks of Public Domain Translation Tools

In the fast-paced financial environment, analysts and bank employees often rely on public translation tools to meet instant translation needs. However, these tools can lead to data exposure - any data entered through these platforms enters a public, searchable database.

For example, an investment analyst conducting M&A due diligence may inadvertently upload confidential or proprietary information to a public translation tool, resulting in a potential information leak. In contrast, using a secure on-demand translation platform not only provides fast translations, but also ensures the security of customer data.

A Guide to Reducing Translation Risk

Financial institutions can take a number of steps to protect data security and mitigate risk during the translation process:

1. Evaluate translation needs

Conduct a comprehensive analysis of non-English content that requires translation or interpretation and develop a clear process for handling it.

2. Prohibition of using public translation tools

Stop using public translation tools across your business and switch to an internally controlled on-demand translation platform to ensure data security.

3. Create a clear communication policy

Clearly define what actions are allowed and what are not acceptable to increase transparency in data processing.

4. Work with a professional translation service provider

Choose a translation vendor that offers information rights management (IRM) and requires it to implement strict data security processes, including protection of equipment and work environments.

Conclusion

In a globalized financial services environment, language translation is essential, but it also creates additional security challenges. By adopting the above best practices, financial institutions can significantly reduce the risk of data breaches while improving their ability to protect customer data.

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Arrow Translation: Use professional language solutions to protect your data security and business development!

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