Human error remains the main challenge in Fintech security
The price of bitcoin reached a record high in 2021, but fell below 40,000 dollars in January 2022. – © AFP
Those who follow the Fintech market may have noticed that confidence in Fintech security has failed due to the increasing frequency of cybercrime (fintech companies have experienced 2.5 times more attacks than in the previous two years). Despite this, says Thibaud Catry, Chief Compliance Officer at ConnectPay Digital Journal that from a technological point of view, Fintech security is iron-plated.
The biggest risk, says Catry, lies in human error. Such variables are still one of the main challenges, therefore client education should be at the top of the priority list.
Catry recommends that companies try to limit their mistakes caused by the company’s personnel through team and client training. This action is necessary to challenge misconceptions that fintech is more exposed to virtual threats than traditional banking, Catry notes.
Catry urges to increase defense due to increasing cyber threats.
Here he states: “Today, the size of your business does not determine the ability to avert fraudsters. The massive fraud prevention departments of traditional banks are becoming obsolete, as the “strength in numbers” paradigm has shifted to “strength in technology”.
The expert adds: “Now it is possible to prevent fraud with the same – or even higher – efficiency with fewer people simply by using appropriate tools and automation.”
He also notes that the long-term credibility of older banks in a way puts them at greater risk. For example, in phishing attacks, large banks are often a better target for scammers as they serve an incredibly high number of people.
Catry says: “If a person has an account with a well-known bank and receives a message that it is blocked, he / she is more likely to click on the link. As a result, fraudsters often target people who use the most common bank names, exploiting brand awareness to capture ignorant customers. “
The most important threats facing finance companies, according to Catry, are: Phishing attacks, brand abuse and CEO scams (scammers pretending to be a senior business executive). The latter is especially harder to stop, Catry believes, since fraud from social engineering prejudges and exploits human trust.
In this regard, Catry explains: “Even the best technology implemented may not work if a recipient blindly trusts a sender, does not take the time to evaluate the legitimacy of the content and clicks on any link he / she receives. “
When it comes to preventative measures, Catry emphasizes that being a digital native enables the fintech sector to deal with cyber threats more easily than previous banking services. This can be strengthened by building awareness both internally and externally, for example teaching employees in the most common fraud scenarios is a common practice, clients are usually not part of this process.
