Cyber ​​security for fintech companies

Cyber ​​security is usually stereotyped to be a need for large companies and businesses that have sensitive information. However, we have also seen an increase in attacks on fintech companies recently. With this, the lesser-known fact that financial institutions have always been the number one target for hackers came to light. But why is this? With more and more digitization of financial services, financial institutions are aggressively trying to reach the masses for financial inclusion. Fintech companies are also trying to make the product simple so that it gets wider adoption. With high penetration of smartphones and internet, fintech services are at the doorstep of every individual. At the same time, hackers see this opportunity as a goldmine for exploiting financial applications.

According to a report from the Boston Consulting Group, financial institutions are 300 times more likely than other companies to be exposed to a cyber attack. Listed here are the common types of cyberattacks on financial institutions:

Phishing attacks

Phishing attacks are a type of social engineering attack that tries to trick individuals into providing their credentials and further hackers gain access to the system

Ransomware

Ransomware is a type of malware where hackers gain access to the system and encrypt the data. Hackers then ask for money to decrypt the data.

DDoS attacks

The victim server is flooded with a lot of fake traffic that will choke the server bandwidth and affect performance.

Supply chain attack

Hackers enter the customer system through third-party software by exploiting the third-party software.

As these methods have become very consistent, financial institutions must look beyond regulatory and compliance security requirements to mitigate cyber attacks. They must also put in place a comprehensive cybersecurity plan to protect their networks, data, applications and devices.

Here are some cybersecurity measures that must be implemented:

Data loss prevention

Data Loss Prevention (DLP) solutions monitor, detect and protect sensitive data on corporate networks and block copying, pasting, downloading of data.

Multi-factor authentication

Multi-factor authentication (MFA) adds an extra layer of security during authentication. It can be in the form of OTP, T-OTP and biometrics or push notifications.

Advanced threat protection

Advanced Threat Protection (ATP) is a combination of multiple cybersecurity tools that provide detection with real-time visibility, protection and response. ATP solution involves email gateway, anti-malware, endpoint protection and centralized monitoring platform.

Zero trust

The Zero Trust solution provides secure access to applications and corporate networks for internal and external users on a need-to-know basis. It includes security for users, devices, data and networks.

Although as individuals, having lived in a technology-driven decade, we have learned to be aware of all kinds of cyber security threats. The problem that arises, however, is that we are in a constant race to be outsmarted or outsmarted. This gives rise to the need for thorough planning which will allow for better visibility, early detection, rapid response and timely mitigation scope.

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