Universities today are more than centers of learning—they’re data powerhouses. From tuition payments and payroll to donor contributions and federally funded research, higher education institutions manage vast amounts of sensitive financial data and intellectual property. Unfortunately, this makes them prime targets for cybercriminals.
And with 5.5 billion accounts compromised in 2024 due to data breaches, it is now more important for institutions to be on their toes.
But the good news is, thanks to the GLBA Safeguards Rule, Safeguards Rule implementation in higher education you can dramatically reduce your exposure. Let’s find out how.
Four Most Common Threats to University Financial Data
Knowing what to watch for is the first step in building a strong defense. So, here are the four common threats that universities or any institutes mostly face.
1. Phishing Attacks
Phishing remains the most common and effective entry point for attackers targeting university systems. These emails often mimic – internal communications, student services technology or trusted vendors – to trick staff and students into revealing login credentials or downloading malicious files.
According to a 2023 Report, 74% of breaches in the education sector involved the human element—mostly phishing.
Hackers use these credentials to gain access to financial portals, payroll systems, or even wire money out of university accounts. A single click can compromise an entire system.
2. Ransomware
Ransomware attacks are on the rise, especially in higher education. In this scenario, cybercriminals encrypt critical files—like tuition or academic records, grant data, endowment and fundraising data, or accounting databases—and demand payment for their release.
In 2023, ransomware attacks on higher education were up 70% from the previous year, and one in three paid a ransom. “Those numbers are based only on incidents in which a ransom was not paid, the report notes, meaning that the actual number of attacks was probably significantly higher.”
Even when backups exist, recovery is time-consuming, expensive, and can severely disrupt financial operations and for some, a ransomware attack was the ‘last straw’ that drove an institution to close.
3. Insider Threats
Not every breach comes from outside. Sometimes, employees or students—whether intentionally or unintentionally—cause data leaks. A staff member clicking on a phishing link or storing sensitive data on an unsecured personal device can expose entire databases.
These insider threats cost educational institutions millions of dollars, often due to a lack of training or misconfigured access.
Additional guidance such as NSPM-33 (National Security Presidential Memorandum-33) was designed to help prevent foreign interference with U.S. federally funded research and development at higher education institutions including the identification of foreign research participants and ties with foreign entities involved in the research.
4. Outdated Systems and Software
Universities often rely on legacy systems that haven’t been updated in years. These outdated platforms lack modern security patches, making them easy targets for attackers using automated tools to scan for known vulnerabilities.
Failure to update or patch software in time opens the door to exploits that can be used to steal financial data or manipulate financial records. Double check your mitigating controls designed to reduce the risk of legacy systems that you won’t be (or can’t) transitioning from.
Eight Ways to Prevent Financial Data Breaches
Here are eight ways you can prevent financial data breaches in your educational institution:
1. Encrypt Financial Data at Rest and in Transit
Encryption ensures that even if sensitive financial data is intercepted or accessed by unauthorized users, it remains unreadable without the decryption key.
At rest, this includes encrypting databases, servers, and backup drives where financial records are stored. In transit, it means securing data as it moves between systems—such as between the billing portal and the university’s backend.
Use strong encryption standards like AES-256 for data at rest and TLS 1.2 or higher for data in transit.
2. Train Staff and Students on Cybersecurity Awareness
Human error remains the biggest vulnerability. One careless click on a phishing email or using a weak password can lead to a full-blown breach.
Run mandatory cybersecurity awareness training for all faculty, staff, and students at least once a year. Cover topics like identifying phishing attempts, securing login credentials, and avoiding public Wi-Fi for accessing university systems.
Implement ongoing regulatory educational training and cybersecurity awareness programs tailored to specific roles. Cybersecurity awareness training can use simulated phishing campaigns and real-world scenarios to educate employees as to the ‘what’ they should do. Conducting regulatory educational training provides the opportunity to explain ‘the why’ for the activities and training and to discuss the outcome for improved cyber resilience in addition to protecting student and faculty NPI. Incorporating training into onboarding processes and scheduling annual refreshers can build a strong culture of compliance.
3. Regularly Update and Patch Financial Systems
Outdated software is one of the easiest ways for attackers to break in. Financial systems—especially custom-built or legacy platforms—must be updated regularly to patch known vulnerabilities.
Create a schedule for monthly patching and prioritize high-risk vulnerabilities immediately. Use automated tools to scan for outdated software across the institution and notify IT of overdue patches.
Also, if you outsource your financial systems to a third party, the GLBA Safeguards Rule has a requirement 314.4(f)(3) of the Code of Federal Regulations titled ‘Monitor Service Providers’. Given the data involved, this should be a paramount initiative at the institution.
Don’t forget: even small tools like browser extensions or plug-ins can become backdoors if neglected.
4. Use Multi-Factor Authentication (MFA) on All Financial Accounts
MFA adds an extra security layer by requiring two or more verification methods, such as a password and a code sent to your phone.
Require MFA for all logins to systems that handle or access financial data—this includes accounting software, student payment portals, payroll platforms, and vendor systems.
A report by Microsoft revealed that MFA can block 99.9% of automated attacks, making it one of the simplest yet most effective protections.
5. Monitor and Audit Financial System Activity Continuously
If something suspicious happens—like a login from a foreign IP address or a sudden data export—your systems should flag it immediately.
Set up real-time monitoring and automatic alerts for unusual behavior. Create audit logs that track who accessed what, when, and from where.
Regularly review logs to detect patterns or indicators of compromise. This makes it easier to respond quickly and reduces breach impact.
6. Vet and Monitor Third-Party Vendors Handling Financial Data
Your university may be secure, but what about your payment processor, payroll service, or loan provider? If vendors store or process your financial data, they’re part of your risk surface.
Before onboarding any third party, require a security audit or compliance certification (like SOC 2 or ISO 2700).
7. Develop an Incident Response Plan for Financial Data Breaches
Your plan should include:
- A response team with clear roles
- Steps for isolating affected systems
- Communication templates for internal/external stakeholders
- A checklist for regulatory reporting and legal requirements
- Backup restoration and post-breach analysis
Practice your plan with tabletop exercises to ensure your team knows what to do when seconds matter.
8. Stay Compliant with FERPA, GLBA, and Other Regulations
Universities must follow strict data privacy regulations, especially when handling financial information.
- GLBA (Gramm-Leach-Bliley Act) requires financial institutions (including universities) to safeguard customer information.
- FERPA (Family Educational Rights and Privacy Act) protects students’ education records.
- PCI DSS applies if your institution processes credit card payments.
Partner with FortifyData to Safeguard Your Financial Ecosystem
When systems are outdated, access is unmanaged, or awareness is low, universities risk exposing more than just dollars—they risk their reputation, trust, and regulatory penalties. The goal isn’t perfection—it’s resilience.
And resilience starts with visibility, smart tools, and the right partners like FortifyData by your side to help achieve Safeguards Rule implementation in higher education.
Our Attack Surface Management (FortifyASM) solution gives you full visibility into your internal and external assets, continuously identifying risks before attackers can.
Ready to see how FortifyData can help automate many of the steps to meeting GLBA Safeguards Rule compliance? Schedule a demo to see how we do it and to discuss your needs and situation or see what we find in our complimentary external attack surface assessment.
