Cybersecurity for Fintech Businesses

The evolution of banking and the financial scene is an incredibly deep and interesting story, and one of its newest chapters is online banking and finance. Combining the modern technology and online structures with traditional ideas of banking involved many innovative ideas, and also left a lot more openings for danger. That is why it’s now, more than ever, of paramount importance to increase the level of cybersecurity in fintech companies.

First, we’ll take a look at what fintech companies really are and what kind of business to they deal with. Then, we’ll analyse a few types of cyber-attacks that these companies can expect to face, along with why and how they can protect against them.

What is Fintech?

Fintech is an abbreviation for finance and technology. As the name suggest it is a relatively new and up-and-coming field of study for both finance and technology experts. However, it has undeniably made our lives much easier, with the development of things such as mobile banking or investing services.

If you haven’t heard about fintech before, you might be confused as to how that was possible since it seems so widely accepted in our everyday life. That’s no surprise, because fintech has few products that really “carry its name”. Namely, you don’t see a mobile banking app and think ‘oh this is a fintech feature’, but rather ‘oh okay this is my bank’s feature’. It’s like this for mostly any other product or service that fintech has developed.

This is because the main focus of fintech isn’t to create completely new concepts and features in banking and/or technology, but rather to improve the ones that already exist, or implement new features into already existing concepts. So, you won’t see a fintech product alone, but always implemented within a larger traditional financial framework.

New and established fintech companies alike focus on developing these products, services, and features, and designing the most seamless and efficient way of implementing them in the financial system.

Security Threats

Although we all love using e-banking or mobile investment apps, there are some drawbacks to them. Mainly, that’s security. In older days, when technology wasn’t so deeply rooted in every aspect of our daily lives, it was much tougher to endanger someone’s security when it comes to finance and banking. You would’ve had to put in much more effort, and expose yourself to more risk, before being able to steal someone’s personal information, or money from their account. Today, that’s not the case anymore. Here are some examples.

Data Hacks

We’ve all heard about them, right? You see them on the news every other day. It seems like no one can completely protect themselves from these cyber-attacks, not even technological giants that govern the market in this area. Well, there is no way to 100% protect against anything, so you shouldn’t expect that from any security program. However, a good one will definitely reduce your chances of suffering a data hack. This includes stealing your customer’s personal information, bank account numbers, e-wallet information, etc. If you’re interested why do we need a VPN for e-wallets that we just mentioned, make sure to check try these guys to better understand where digital finance is going.

Malware Injections

This is a bit more sophisticated method than just blatantly stealing your customer’s information. Malware injections are a subcategory of a larger group of so-called code injection attacks. These types of attacks aim to exploit unsafe connections that, for example, your fintech company’s server is making when providing your customers with your services. By exploiting such a connection, the perpetrator can inject pieces of code into your server’s executable, thus changing the way it works. This can have a large range of consequences, ranging from practically harmless to disastrous. Of course, you don’t want to take any bets with this, as the ‘disastrous’ part of the spectrum really can be scary and lead to permanent damage not only to your current business, but also any future ones, due to bad reputation.

Denial of Service

One of the possible end results of malware injections can be denial of service attacks, but that isn’t the only method by which one can achieve the same result. This type of attack aims to prevent you from providing your customers with the services you offer, just as the name suggests. This can be fatal for your business unless solved immediately, as it can also lead to you fully losing control over your virtual infrastructure.

So, are there any ways of protecting against these attacks? Of course, one only needs to figure out what their business needs, and how much they can spend. However, the best tip here is that you can’t really overspend in a good security program. The benefits it offers far outweigh any potential costs. And seeing how hacker attacks are the main reason many online businesses, fintech and otherwise, are being shut down, it makes it that much easier to reach the right decision.