Cybersecurity In FinTech Detecting frauds and identifying security challenges to develop a secure FinTech.
Table Of Contents Overview Importance of Cybersecurity in FinTech Major security challenges in the evolving FinTech landscape Impact on business and its customers Key to developing a secure FinTech
Overview
The FinTech industry is driving the digital transformation among all the industries. With a rise in digital transactions amongst private and public organizations, financial frauds and scams have been keeping a solid pace too. Since the financial industry is now more than ever, connected globally, the complexity in tracking these frauds has also increased. Understanding the types of threats to cybersecurity, the challenges in the ever-evolving FinTech space, and learning about advanced ways of fraud-detection and scam investigation is the key to finding solutions to protect against these malicious activities.
UNDERSTANDING THE IMPORTANCE OF CYBERSECURITY IN FINTECH According to a recent security research, most companies have unprotected data and poor cybersecurity practices in place, making them highly vulnerable to data loss. To successfully fight against malicious intent, it’s imperative that fintech companies make cybersecurity awareness, prevention and security best practices an imperative part of their culture. Because of the high amount of customers across the world that use financial technologies nowadays, the amount of people at risk of data breaches of sensitive information and other cyber scams is at a high risk. This makes it crucial to ensure that fintech companies keep their security up for both, their staff and customers’ safety, and the overall wellbeing of the business.
TYPES OF CYBER ATTACKS TO FINTECH
Malware
Data Breach
Phishing
Unsecured Cloud
CYBER ATTACKS IN NUMBERS ➢ According to a recent study, 94% of malware is delivered through emails. ➢ As per a study conducted by Cisco, about 60% of malicious domains are associated with spam campaigns. ➢ Phishing attacks and frauds account for more than 80% of reported security incidents. ➢ According to Symantec, after a decline in 2019, phishing increased in 2020 to account for 1 in every 4,200 emails. ➢ 30% of data breaches involve internal actors. ➢ The average cost of a financial services data breach is $5.85 million USD. ➢ Cloud-based cyber attacks rose 630% between January and April 2020. ➢ Americans lost more than $97.39 million to COVID-19 and stimulus check scams.
What do these attacks mean to the the business and its customers?
BUSINES S ● Loss of customer trust Legal implications Increased risk of exposure to subsequent frauds and scams
CUSTOMERS ● Use of stolen data in more financial frauds ● Misuse of data ● Spamming and infiltration of other systems
The Cybersecurity Framework The key to developing a secure FinTech requires cyber resilience, i.e; an entity’s ability to prepare for, respond to, and recover from any kind of a cyber attack. An early detection of a spam can prevent any company from falling prey to fraudsters and scammers. The ability to do so majorly lies in the company’s culture of cybersecurity - the use of full suite of tools, excellent human resources to lead the process, precise authentication techniques, and more.
Thank you! Prepared by Lakshay Mohanpuriya Manager, Money 2.0 Conference https://www.money2conf.com/