Securing FinTech: A Cutting-Edge Attack Surface
The Fintech (Financial Technology) sector is a rapidly growing industry, driven by digital innovation and solutions. This has created several unique cyber security challenges, alongside common threats such as phishing, ransomware and data breaches.
Many FinTech firms manage extremely sensitive client data and financial activities, making them a very appealing target and a potentially lucrative treasure trove for cyber criminals. As such, the consequences of a successful cyber-attack can be devastating for firms, their clients, and everyday customers. In addition to the financial and reputational damage, the loss of trust can also have a significant impact on a firm’s future.
The Unique Cyber Security Challenges for Financial Technology
The Fintech industry’s reliance on cutting edge technology brings many distinct benefits; the specialised nature of this sector means it also encounters its own array of cyber security threats. According to a recent 2023 report by Fastly, financial organisations suffered an average of 50 known attacks in the last year – more than any other industry. These threats range from mobile security and API vulnerabilities to cyber-attacks on online payment systems and cloud computing.
Third Party & Supply Chain Threats
FinTech companies often use third party vendors for services such as payment processing or data storage, exposing them to supply chain attacks. In January 2023 a ransomware attack on the financial software company, ION Group, left as many as 42 of its European clients locked out of critical applications. This included prominent banks and hedge funds. Supply chains have multiple cyber security weaknesses, thereby compromising a Fintech company’s data and network. A Vendor Management policy and applying due diligence on any third-party vendor can help manage this risk.
Cloud Computing
Most financial transactions today are processed via cloud-based computer systems, offering scalability, speed, and accessibility. This includes net banking, digital wallets, form filling and payment gateways. The volume of sensitive data, however, makes all these systems vulnerable to cyber-attacks. Using a safe and secure cloud provider is crucial for FinTech firms to protect their cloud computing infrastructure.
Online Payment Systems & Mobile Security
Fintech platforms handle extensive payment transactions. Consequently, mobile-based payment and banking services have emerged as a critical fintech service for consumers. According to CMI, the global mobile payments sector is projected to grow to 587.52 billion by the year 2030. Protecting transactions conducted on mobile devices against malware and phishing is therefore critical.
Cyber-attacks often target payment systems, which can lead to payment fraud and unauthorised access. Phishing emails impersonating legitimate online payment portals or texts designed to trick users into revealing their login credentials (known as smishing) are a common threat for online payment systems.
As reported by Bleeding Computer, by May this year over 30,000 users had installed the Android banking Trojan 'Anatsa'. Once downloaded, this is designed to infect the user’s device and extract users bank account credentials, credit card details and payment information from their legitimate banking apps.
API Vulnerabilities
‘Application Programming Interface' is an important tool in the financial sector, allowing convenient sharing of data between applications and banks. The primary scope of the app means that developers of API’s often prioritise speed, features, and functionality over security concerns.
According to a study by McKinsey Digital in 2023, 50% of banks use API’s for their interfaces. This growing reliance however creates vulnerabilities that can be exploited, resulting in data breaches and unauthorised access.
How the FinTech Sector Can Bolster its Cyber Posture
Blockchain for Secure Transactions
Blockchain technology (an advanced database mechanism that allows transparent and secure information sharing within a business network) can help create a clear audit trail, eliminate financial fraud and data redundancies, and bring an additional layer of transparency. Blockchain’s decentralised nature and cryptographic algorithms also make it more resistant to tampering, thereby reducing the risk of fraud.
Employee Education
Educating your employees about common threats such as ransomware and phishing can boost your cyber hygiene. PureCyber’s bespoke training platform is designed to equip employees with the essential cyber knowledge and best practice to protect themselves and their employer from insider threats, including human error. PureCyber’s Phishing Simulation service can strengthen the human firewall of your organisations; find out more here.
Continuous Monitoring and Threat Detection
Employing advanced monitoring tools and a third-party Security Operations Centre allows Fintech firms to respond to security threats in real time, preventing attacks before they cause significant damage; read the benefits of outsourcing your SOC here. Conducting a cyber audit through penetration testing services can also help Fintech firms identify vulnerabilities in their software and applications and mitigate them accordingly. Having an effective Incident Response Plan in place in the event of a data breach is also critical for organisations in any sector, and this is no different for the Fintech industry.
Compliance and Governance
In addition to adhering to data protection regulations such as GDPR, governance is crucial to the implementation of robust cyber security across any organisation. From Cyber Essentials and Cyber Essentials Plus, to IASME Assured and ISO27001, PureCyber’s Governance team can advise and support you on your cyber security journey.
Multi-factor Authentication & End-to-end Encryption
Implementing multi-factor authentication can add an extra level of security to user accounts and prevent unauthorised access even if cyber criminals breach one layer of verification. Applying robust encryption protocols can also help secure data both in transit and at rest.
By adopting a proactive and adaptive approach, implementing the latest cyber security measures, and staying compliant with industry regulations, FinTech companies can strengthen their cyber security posture. As the sector continues to advance, the commitment to cybersecurity will be vital in shaping a resilient and secure future for financial technology.
How PureCyber Can Help You
PureCyber’s subscription packages offer an integrated and scalable cyber security approach for fintech companies of any size. This includes our Crest certified penetration testing services, 24/7 SOC and Active Threat Detection, cyber policies, patch management and incident response.
As a long-standing certification body for both the Cyber Essentials Standard and Cyber Essentials Plus accreditation, PureCyber have a history of working closely with customers to help them achieve this governance standard.
Our Cardiff based cyber experts are here to answer your questions. Get in touch by clicking on the contact button below.
Sources
www.bleedingcomputer.com
www.fastly.com
www.mckinsey.com