Cybersecurity Fintech Trends for 2023
Fintech companies face a particular set of challenges when it comes to cybersecurity.
Fintech organizations acquire personally identifiable information (“PII”) and other sensitive data from their clients on a regular basis. If a Fintech company fails to protect this PII or is the victim of a data breach, they are on the hook for a slew of regulatory consequences, not to mention financial losses. Fintech organizations must protect their customer’s sensitive information. Here are the top 5 Cybersecurity Fintech Trends for 2023.
1. Ransomware Threats
Ransomware threats are on the rise, and Fintech companies are not immune to these dangerous cyber threats. In 2021 CNA Financial Corp paid $40 million to hackers as a ransom to reclaim its data, one of the largest ransom payments ever made public. The size and scope of ransomware attacks are only expected to increase in 2022 as tensions rise with the Russian war in Ukraine.
So what can organizations due to mitigating the risk and impact of a ransomware attack? Find a managed security services company you trust and immediately contact them for incident response services at your network’s first sign of trouble from a DC based cybersecurity consultancy . Ensure your organization regularly backs up your data in the event of a cybersecurity incident. Configure automated patching for all your devices so software vulnerabilities can’t be as easily exploited.
2. Mobile-First Approach Means Increased Phishing Risks
Consumers take mobile-first banking for granted in 2022. With a mobile-first approach Fintech companies have an opportunity to engage customers more effectively on a device they already spend on average of 2 hours and 55 minutes on each day. However, relying on a mobile-first approach puts consumers in a vulnerable position. Phishing, SMS spam, DDoS – Distributed Denial of Service attacks, and other cyber threats are becoming more common on mobile devices. Luckily, you can perform phishing simulation these days to find gaps in your system and work on your security.
Fintech companies should take a proactive approach to mobile security and firstly educate customers on the importance of cyber security awareness. Customers should know they will never receive a text from your company asking for their password or other sensitive information. Implement 2FA for user accounts to increase security. Fintech organizations should also ensure that app developers utilize application security best practices.
3. Cloud Technology
Cloud technology has become more common in the last ten years. Cloud computing can be more secure than utilizing traditional on-prem servers; however it does come with its own set of security concerns. Fintech companies using cloud technology can fall victim to unauthorized account access, misconfiguration, and identity verification vulnerabilities.
Misconfiguration is one of the most significant factors that can contribute to a cloud data breach. Cloud-based Fintech solutions will undoubtedly play a key part in the global economy, including Fintech, in the future. However, Fintech companies who are proactive in the face of such breaches are what distinguishes more secure firms from those that are vulnerable. The cloud security alliance recommends implementing the Zero Trust Model to ensure that each employee or contractor only has access to the data and permissions necessary to complete their duties. This means, for example sales reps do not need access to the backend of your website.
4. Cryptocurrency Security
Ransomware attacks are commonly used by cybercriminals to encrypt data and then demand payment in the form of bitcoin to decrypt it. Bitcoin wallets are an obvious choice for cybercriminals to acquire what they want while remaining anonymous because identities can be easily disguised. Cybercriminals can permanently lock customers out of crypto wallets by stealing their account keys, giving them access to their entire crypto wallet. These wallets can be valued in the thousands and even millions of dollars.
As a result, it’s critical that crypto accounts be handled with extreme prudence for both users and Fintech organizations who offer crypto investing, for example. The use of blockchain technology makes it harder for cybercriminals to hack crypto wallets and other financial transactions.
5. Managing Insider Threats
Insider threats, performed by both careless and malevolent insiders, have become a major source of breaches, especially as the use of collaboration tools has increased with the web and remote work. Further data breaches might jeopardize consumer trust, reputation, and profits. Thus, it’s a key issue that Fintech organizations must continue to address in 2022. To prevent insider threats from derailing your business, ensure that all terminated employees are removed from business accounts, including email, website, social media, CRM, CMS, critical business applications, and other essential business accounts.
Hackers target Fintech companies because they hold a gold mine of customer financial information. While it’s natural to believe that a central bank can finance a full cybersecurity program, many small and mid-sized Fintech startups often can’t afford it or don’t prioritize it. Companies that process financial information have the highest level of security and the most stringent regulatory requirements among enterprises in the United States.