There is no question about it: Fintech is one of the top business sectors that have a higher risk of cyber attacks and needs cybersecurity the most. That’s because it’s a sector that holds hardcore functional & ransoms-worthy financial data which makes it a natural target for hackers. The invention of digital wallet methods has given rise to financial cyber risks such as fraudulent transactions, ransomware, denial of service attacks, credit card fraud, extortion, etc. This is why fintech cyber security is becoming the top priority of financial institutes that want to maximize their security measures against possible cyber threats.
Cybersecurity risks can impact almost all the components of the financial ecosystem. A single cyber attack on a fintech organization will have far more ripples than any other business sector. Moreover, in the fintech industry, hackers can cause extensive damage by targeting tech users to get direct access to users’ data and resources. One malicious app or a loophole in the network can expose sensitive financial data, strip users of their assets and leave the reputation of a fintech organization in tatters.
A financial organization targeted by a cyber attack may recover monetarily but it becomes almost impossible to regain the trust of the customers. To mitigate risks and potential cyber threats, cybersecurity should be the top concern for every financial institution. A few of the core benefits of fintech cyber security are:
Implementing cybersecurity solutions will provide financial companies with increased protection against consumer data breaches. This will also bring peace of mind to insurers and investors who often hesitate to invest their resources in institutes that lack safety guards.
Due to added compliance requirements for financial service providers, it is imperative to get a cybersecurity plan to protect business networks accordingly.
Financial institutes can survive as long as they maintain their reputation. A single breach can jeopardize the brand’s reputation and lose customers’ interest. Thus, financial institutes must protect their networks and data to establish and maintain their reputation and customers’ trust.
Here we have covered various fintech cyber security threats and measures that financial organizations can take to protect their systems.
When banks or financial institutes establish their relationships with fintech service providers to leverage their services, they take on third-party risks such as data breaches, ransomware, litigation, and reputation damage. Integrating third-party products or services can provide many entry points to hackers who can get direct access to a large pool of customers’ data.
Thus, organizations must consider fintech cyber security factors in their third-party risk assessment process. They must get advanced cybersecurity solutions to ensure their data networks will not be vulnerable to cyber criminals through third-party products or services. These solutions should not only protect the networks but also identify threats in a timely manner so appropriate mitigation/prevention measures should be taken.
When financial institutes venture into third-party financial partnerships, it is the users’ credentials and payment card information that is vulnerable to hackers the most. To address the data leakage risks, organizations should consider leveraging the best cybersecurity solutions that best fit the needs of a fintech organization.
Ask the vendors who are selling cybersecurity software to provide you with solutions that detect all the data loss modes, identify hackers’ patterns based on past breaches, and minimize the likelihood of breaches.
Cloud computing plays a critical role in managing Fintech systems. Digital wallets, payment gateways & secure online payments are some of the niche cloud computing provides in a Fintech system. The lack of adequate cloud cybersecurity measures will lead to the corruption of sensitive Fintech information. Such risks can be avoided by implementing cybersecurity solutions that provide a strong encryption mechanism for cloud platforms.
Today, cybersecurity service providers are also using cloud-based API technology to develop highly advanced security solutions to maximize security and trust in the Fintech ecosystem.
Hackers are increasingly targeting SWIFT (Society for Worldwide Interbank Financial Telecommunication). Financial organizations and banks all around the world use the SWIFT system to transfer all the data about transactions.
Banks around the world are exposed to various exploitable vulnerabilities and cybercriminals take advantage of these vulnerabilities to launch malware attacks on these systems to steal financial data and then use it to exploit users’ resources.
To prevent such malware attacks, organizations should consider implementing the following fintech cyber security measures:
Moreover, fintech companies that need cybersecurity solutions should partner with vendors that provide solutions to combat innovative and dynamic malware attacks faced by the financial industry these days.
Mobile applications play a prominent role in Fintech banking services. More than 77% of users today prefer to make transactions through Fintech mobile apps. Cybersecurity experts have found that the integrity of data collected from Fintech mobile applications has varied dramatically over the years.
In order to prevent data integrity risks, Fintech organizations should hire highly expert cybersecurity professionals to implement data management tools, robust data backup, and storage media management and track data integrity issues.
Above we have mentioned a few Fintech cyber security risks. But as the Fintech industry is evolving and integrating new technologies every day, it’s giving rise to new opportunities for hackers.
Therefore, CISOs of financial institutions and cybersecurity vendors need to collaborate to implement the best Fintech cyber security solutions and practices to prevent monetary and reputation losses. Execweb - a top cybersecurity platform, provides an opportunity for vendors and CISOs to collaborate and develop long-term business relationships. Join now to have a virtual roundtable with CISOs and discuss critical issues at the forefront of Fintech cyber security today.
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