As the application of financial technology (FinTech) has grown in dealing with customer transactions and finances, so have the threats to that technology. Malicious actors value personal data that can be used to steal identities, siphon off financial resources or be sold on the black market. Below are some measures FinTech firms can take to ward off these cybersecurity threats.
Securing Partnership Vulnerabilities
Collaboration in FinTech is essential for firms to share their innovations and unlock joint value. During the collaboration, security vulnerabilities can occur when the two different systems interface. Security teams from both sides will need to run tests throughout the processing to expose vulnerable sections that need addressing.
Tighter integration of data between both entities will help seal any security loopholes. Such measures might be time-consuming and strenuous, but they are effective in warding off cyber-attacks.
Encrypting the Data
FinTech companies collect a lot of data from their customers. The information can range from financial, personal or as of recently, to alternative. Alternative data is the digital information that helps define a customer’s behavior like their social media content for example.
Combining new technology and legacy ones creates vulnerability spots that malicious actors can target to harvest the data within. FinTech firms ought to run extensive encryption of the customer data they collect to protect it from theft.
Another potentially vulnerable area in customer data is its collection. FinTech companies need to both sensitize their customers on data security and empower them to adopt these measures. Digital payment services should facilitate biometric locks to deter any hacking of passwords. FinTech firms should also deploy multi-factor authentication to empower their customers protect their data from man-in-the-middle attacks.
As is always the case with progress, there are additional security concerns that are always added the more advanced we get in technology. This is especially true when technology is handling our finances. With the use of AI on automatic systems, there will be an increased need for security with all of the various financial applications that have been developed up until now. There will also be an increased need for students majoring in IT security and technology so that they can handle the security issues for big companies and small companies as they add to their technology apparatus. This is a vast field to consider going into if you’re good with computers or if you want to find a way to work in the security field.
FinTech enterprises face cybersecurity threats as they deploy their innovations. An eco-system wide approach to partner security and customer empowerment is essential for beating malicious actors.