Cyberthreats To Fintech: Challenges And Mitigation

An analysis of the industries attacked highlights the risk of supply chain disruption, critical infrastructure impact, and supply chain cyberattacks

The user’s interest in managing money online has skyrocketed over the last few years owing to ease and convenience.. In the coming years, fintech will continue to take a center stage in the financial system as the financial institutions have recognized the power of digital technology. Technological progress and innovation would be at the centre of this evolution and will drive disruptive business models in financial services.

“We take a proactive approach through a threat modelling process to mitigate and avoid the active threats. Technologies which will drive fintech development and shape the competitive landscape of finance over the next decade are No-code and low-code will redefine application development and IoT will drive a new era of trust in finance,” states Gaurav Chopra, CEO and Founder of IndiaLends.

The Challenges

Fintech companies are certainly worried about these aspects of their business and they would need to invest a lot more towards ensuring the security of their data, in the coming years. Automation is the key to achieve better results.

Naveen Bindal, Co-Founder, EnKash, “Companies are working towards developing higher standards of encryption and data privacy, including setting up independent departments and third-party assessments to review and ensure security of their data. These departments are not just focusing on protecting data from external threats, but are also educating internal users from the potential risks of data breaches.

The lack of common security standards beyond the very basic ones also makes it difficult to ensure the re-implementation of a 100 per cent threat-proof process. Alok Kumar, Head of Infosec, Niyo explains, “Cybersecurity is a shared responsibility which requires adoption among People, Process and Technology involved in delivering and consuming any services.” The desire for cashless transactions already touched all the corners across the country during this pandemic; despite a lack of financial literacy, he added. 

Towards A Safer Ecosystem 

“Lack of financial literacy and awareness of financial cybercrimes are challenges in terms of establishing the threat-proof process. It has also caused general mistrust among the unbanked and rural population, discloses Vineet Tyagi, Global CTO, Biz2X.

An analysis of the industries attacked highlights the risk of supply chain disruption, critical infrastructure impact, and supply chain cyberattacks. Most successful Conti attacks target businesses with $10-250 million in revenue, indicating a “goldilocks” range of successful attack targets among medium and small businesses.

We cater to retail investors on one side, and small business retail borrowers on the other side. Both of these user groups are highly vulnerable to data security and privacy threats. At IndiaP2P, given that we shoulder the responsibility of vulnerable users, we take minimum data, all tech approach where all processed are fully digitized i.e. no scope for manual intervention,” mentions Mohit Gupta, Co-founder & CTO,

Indian fintech firms will need to stay ahead of attackers by having comprehensive security measures in place in order to keep their data safe and maintain their customers’ trust. Fintech companies need to work towards strengthening the procedures and policies related with digital financial services. Along with all the technical safeguards being used, the users need to be made aware about cyber-related risks and measures to be taken.

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