Protecting the Fintech Industry From Cybersecurity Threats

As the fintech industry continues to grow, so does the risk of cybersecurity threats. Fintech companies are a prime target for cybercriminals, as they hold a large amount of sensitive data. In this article, we will discuss how businesses can protect themselves from these threats and keep their data safe but first, a look at the top cybersecurity challenges that fintech companies face.

Top Cybersecurity threats for Fintetch Companies

Research shows that the financial industry pays the heaviest cost from cybercrimes. Below are the top cybersecurity challenges that fintech firms face;

Rasomware Attacks

Ransomware is the biggest cybersecurity challenge that is facing not only the financial industry but almost all other industries. In ransomware, the attackers take over the user’s data and prevent them from accessing their data until a ransom is paid.

These attacks affect not only the individual user but also the business as it is locked out of data crucial for daily operations. However, even after paying the ransom, the attackers usually do not release the data.

Phishing Attacks

In phishing attacks, cybercriminals send malicious emails to unsuspecting users. The email contains links or attachments that are infected with malware which can be used to steal data from the user’s device.

The attackers then use this stolen data to gain access to the company’s systems and financial accounts.

SQL Injection Vulnerabilities

These vulnerabilities are commonly found in applications that connect databases. Attackers exploit these flaws by using malicious SQL statements that extract sensitive information such as customer information, passwords and credit card details from a database.

Social Engineering Attacks

Social engineering attacks are used by attackers to manipulate people into giving up confidential information for their own benefit. These attacks usually involve attackers posing as a legitimate user or company and asking for sensitive information such as passwords, credit cards or bank accounts.

 Insider Attacks

Insider attacks involve employees, contractors or vendors with authorized access to company data. These attackers can use their privileged access to steal sensitive information, manipulate data or cause disruption within the organization.

IoT Attacks

The Internet of Things (IoT) has made it easier for hackers to gain access to a fintech firm’s network. Attackers can use IoT devices as an entry point into the company’s system and then use this access to steal data or manipulate systems.

Cloud Attacks

Fintech companies often rely on cloud services for storing and processing data. However, cloud services can be vulnerable to attacks if the security is not properly implemented. Attackers can gain access to the cloud service and then use that access to steal or manipulate data.

Cryptocurrency and Blockchain Attacks

Cryptocurrency and blockchain networks are becoming increasingly popular. However, these systems can be vulnerable to attacks if proper security measures are not implemented. Attackers can gain access to the system by exploiting flaws in the code and then use that access to steal or manipulate data.

How to Protect Against Cybersecurity Threats

Now that we have discussed the top cybersecurity challenges facing fintech companies, let’s look at some ways to protect against these threats.

Implement Multi-Factor Authentication

Multi-factor authentication (MFA) adds an extra layer of security to user accounts by requiring users to confirm their identity with a second factor such as a fingerprint or a one-time password. This not only makes it harder for attackers to gain access but also helps detect suspicious activity on the account.

Use Encryption

Encryption ensures that data is unreadable and unusable even if it falls into the wrong hands. Fintech firms should make sure all their data is encrypted both in transit and at rest so that it is not accessible to attackers.

Monitor Networks and Systems

Fintech companies should monitor their networks and systems for suspicious activity such as unauthorized access or data manipulation. Companies should also keep their software up to date so that any new security threats can be quickly identified and addressed.

Educate Employees

Employees are the first line of defense against cyber threats, which is why they need to be educated about cybersecurity best practices and aware of the latest techniques used by attackers. Companies should provide regular training sessions on cyber security topics so that employees are prepared to recognize and respond to potential threats promptly.

Invest in Cybersecurity Solutions

Investing in a robust cybersecurity solution such as a web application firewall or an intrusion detection system is essential for any fintech company. These solutions can help protect against attacks and ensure that the company’s data remains secure.

Constantly update your software and systems

Fintech companies should always make sure that their software and systems are up to date. Companies should regularly check for new security updates and patch any potential vulnerabilities quickly.

Outdated systems or security software exposes your business to cybersecurity vulnerabilities. Cybercriminals can take advantage of outdated software to gain access into your systems. It is, therefore, advisable to have patch management software that tracks any software and system changes or updates.

Set up a Firewall

Another way to protect your business from cybersecurity threats is by setting up a firewall. Firewall technologies are used to block unauthorized access to your network and systems. They also provide additional layers of security, such as content filtering, network monitoring and intrusion detection.

Backup your Data

Fintech companies should back up their data regularly to ensure that any valuable information is not lost in case of an attack. Backing up your data can also help you recover quickly from a security breach and minimize the damage caused.

Wi-Fi Protection

Companies should also take steps to secure their Wi-Fi networks to protect against malicious attacks. This includes using strong passwords, enabling two-factor authentication and making sure that the network is encrypted.

Personal accounts for employees

Employees should also be encouraged to use personal accounts for their work-related activities. This will ensure that any data stored in the personal account does not get compromised if the company’s systems are attacked.

Conclusion

By following these steps, fintech companies can protect themselves against the growing cybersecurity threats and keep their customers’ information safe. Implementing these measures will go a long way towards ensuring the safety and security of the fintech industry as it continues to grow.

Having robust cybersecurity measures in place is essential for any business, especially those in the fintech industry which handles sensitive financial data. By understanding the top cybersecurity challenges facing them and implementing the right security solutions, businesses can ensure that their data is protected from malicious actors.