The COVID-19 pandemic and the subsequent lockdown orders in countries around the globe inadvertently paved the way for FinTech startups. New customers have adopted FinTech services due to the rising reliance on the internet.
Nevertheless, with this potential revenue boom, there’s also an active increase in targeted cyber-attacks on FinTech firms. Most firms across different industries experience cybercrime. Whether you’re a sportsbook like BetUS, which offers MLB lines, or a dating site that simply hosts user data, hackers will come for you.
However, in the long run, firms in the FinTech industry are likely to experience more cybersecurity attacks than companies in other industries. When you’re infusing tech with the financial industry, you hold many funds and sensitive user data. These two assets are the most-sought things for cybercriminals, hence, the potential increase of breaches in the FinTech industry.
Join The European Business Briefing
New subscribers this quarter are entered into a draw to win a Rolex Submariner. Join 40,000+ founders, investors and executives who read EBM every day.
SubscribeTop Internet Security Threats in FinTech
Here are the top internet security threats in FinTech:
Cloud-Based Cybersecurity Problems
Traditional banking services and FinTech startups are increasingly utilizing cloud-based platforms more. Moving the bulk of a business with high data velocity presents several gains in improved speed and scalability.
Nevertheless, the cloud has a humongous amount of data, making it a prime target for hackers. Before choosing a cloud platform for your firm, you need to assess the business’s cybersecurity level.
Malware Threats
Malware threats can be facilitated through several points of failure, including infected websites, email attachments, and bogus software. Malware could become very damaging because it spreads rapidly and can infect entire networks.
A FinTech firm should endeavor to install real-time malware recognition tools.
Smartphone App Breaches
Many financial transactions are facilitated on smartphone apps. These transactions contain a lot of personal data and are a perfect target for hackers.
Hackers choose to breach smartphone apps because it is simpler to target individuals than companies. However, if a cyber attacker has breached a FinTech’s smartphone app, penetrating the whole network becomes easier.
Performing constant vulnerability checks is very crucial for FinTech smartphone apps.
Conclusion
FinTech startups need to be as fast in upgrading their cybersecurity techniques as they push out new products. A single cybersecurity attack could lead to the death of a company, which ruins all its efforts.
The biggest internet security threats to FinTech companies include cloud-based threats, malware threats, and smartphone breaches. To solve these existing problems, FinTech firms need to vet cloud platforms, perform regular vulnerability checks, and install real-time malware recognition software.
