Cybersecurity- Role of FinTech

Cybersecurity is essential to protect your computer, servers, electronic devices, mobile devices, and networks from malicious and unauthorized attacks. Every day, tons of data is shared across different platforms. This data is sometimes confidential; at other times, it is sensitive. There is always a threat to such data. Therefore, robust cybersecurity is a crucial requirement for every organization.

Before talking about the role of fintech in cybersecurity, let us know what cybersecurity is and what different types of cybersecurity threats are.

What is Cybersecurity?

Today cyber-attacks are becoming very common around the world. The attacks are usually aimed at assessing, changing, or destroying sensitive information. Some attackers even extort money from users in exchange for sensitive information, while others just attack to interrupt normal business processes. Cybersecurity is the practice of protecting computers, networks, and programs from such attacks that are designed to delete, alter or extort information from users’ systems.

Different Threats to Cybersecurity

Let’s see what the different types of cybersecurity threats that you should be aware of are.

1. Ransomware: This attack usually happens through encryption and thereby locking the victim’s system files.

2. Phishing: The fraudulent emails or text messages that you get all fall under phishing. The prime motive of these messages is to steal all your confidential data.

3. Malware: Malware consists of worms, trojans, and spyware software that can harm your computer files or programs.

4. Spear Phishing: It is a type of phishing attack that specifically targets an organization or a business.

Other common attacks that are a threat to cybersecurity are botnets, SQL injection attacks, insider threats, and zero-day exploits.

Why is Cybersecurity Important?

As the systems under the threat of cyberattacks continue to grow, the need for cybersecurity also continues to grow. The government officials, militants, corporate sectors, and financial as well as medical organizations collect various sensitive information on computers. The information they store is highly sensitive and must not be disclosed in any manner. Thus, it becomes essential to protect such data with the help of cybersecurity.

As per a report released in March 2013, it was said that cyber-attacks and digital spying are becoming one of the top threats to national security that has left even terrorism behind.

Now let us understand the security threat in the fintech industry.

Security Threat in Fintech Sector

Fintech has made mobile transfers, electronic payments, end-to-end user systems, and cryptocurrency trading more effortless. It also provides disruptive technologies that enable the development of some innovative financial services more effectively. But because of the sheer number of people who use financial technologies, the considerable risk of data breaches related to sensitive information also becomes relatively high. There are currently more than 12,000 fintech startups worldwide; this means that the hackers now have greater targets to go after.

So, it can be said that the revolution in fintech has put organizations at the risk of cyberattacks. That’s why there is a need for cybersecurity. It is critical to ensure that customers and businesses can still leverage the benefits of fintech. But fintech does not fully comply with the standards of cybersecurity.

Role of Fintech in Cybersecurity

Creating a Culture of Cybersecurity: Usually, fintech companies collect large volumes of customer data that includes some really sensitive and confidential information making it a high-risk target for hackers. But fintech industries are now emphasizing on good digital hygiene these days to make a lot of difference. They aim to start from the company’s culture and go up to train the staff about the standards and procedures of the security.

Using Security Tool: Fintech companies are paying attention to proper cyber resilience covers. They lay great emphasis on VPNs and email scanners now. These tools detect any kind of threats that can be harmful to sensitive information.

Staying Afloat: Fintech companies are building plans now in order to retain clients so that they can get back on their feet and continue to be financially viable. The resilience plan includes all sorts of factors that include post-attack PR strategies.

Efficient Security Engineer: For any fintech solution to be secure, a sound security engineer is vital. It is the ideal approach for fintech companies looking to meet high-security standards in a better way and innovate in areas that banks cannot address as easily.

Takeaway

Cybersecurity threats and risks are growing in sophistication and number. There’s no question about that. Cyberattacks will continue to attack computers, networks and are not going to stop any time soon. It is crucial to have a cyber resilience strategy, especially in an industry where clients entrust their most sensitive information. Though there is no doubt that the security challenge will continue to be the biggest challenge to address for any Fintech firm, one can be at peace knowing that the fintech industry is taking the lead to protect customers and build trust.