By Katie Pierce
As FinTech services continue to evolve, more challenges come with it. One of the most prominent challenges in the FinTech industry is cybersecurity. With the rise of mobile banking and online payments, hackers are looking for ways to exploit vulnerabilities.
This article will discuss some of these challenges and best practices to help you stay safe when using FinTech solutions.
Cybersecurity Challenges in FinTech
The FinTech industry has seen a surge in popularity over the past few years. However, with the increase in popularity comes an increase in security risks. Some of the biggest challenges include the following:
1) Data Breaches
FinTech companies collect large amounts of data from their customers. Hackers can use this information to steal identities or access sensitive financial accounts. They can access customers’ bank account numbers, social security numbers, and other personal information that could lead to identity theft.
2) Malware Attacks
Malicious software (malware) is becoming increasingly common on smartphones, tablets, laptops, and desktops. This malware poses a risk if your device connects to the internet. It can take control of your computer, steal private information, or damage files. It can even cause system crashes and slowdowns.
3) Application Breaches
Many hackers have targeted FinTech companies that rely on applications. These FinTech apps may contain backdoors that allow attackers to take full control of your devices. Additionally, they can be used to send spam emails, install viruses, or track user activity.
4) Phishing Scams
Phishing scams are one of the biggest threats facing the FinTech industry today. A phisher sends out fake emails that look like they come from legitimate banks or payment processors. They often ask users to enter login credentials such as username and password. If users fall victim to a scam, they may lose money, credit card details, or other valuable information.
5) AI Fuzzing
Using AI-based tools, hackers are finding new ways to target FinTech solutions. For example, hackers can use AI fuzzing to find weaknesses in an app’s code or data security. Once identified, hackers can exploit these flaws to gain unauthorized access to systems or networks.
6) Insider Threats
Hackers may attempt to infiltrate FinTech companies through employees who work at the company. Employees may know about a company’s internal processes, network structure, etc. Therefore, they may disclose confidential information, including passwords and usernames, which hackers can use to gain access to other systems or networks.
7) DDoS Attacks
Distributed Denial of Service attacks (DDoS) is designed to disrupt websites and make them inaccessible to users. A DDoS attack aims to overwhelm servers with traffic from multiple sources. Hackers can launch DDoS attacks against FinTech companies, causing significant damage to the business.
Best Practices to Stay Safe from Cyber Threats
You must implement several best practices to stay safe from cyber threats. Here are some of the most important ones:
1) Use Strong Passwords
Passwords should be unique and long enough to prevent others from guessing them. Use a mix of uppercase and lowercase letters, numbers, and symbols. Change your password every few months and use two-factor authentication as well. This will help keep your accounts more secure.
2) Keep Your Software Up To Date
Software updates protect your device from known vulnerabilities. They will have unique security features for protecting your data. Make sure you update all the software on your smartphone, tablet, laptop, desktop, etc., especially operating systems and third-party programs.
3) Regularly Backup Your Data
Aside from stealing your personal information, hackers can also delete and clear sensitive data. As such, you should regularly back up your data. You can store backups on external hard drives or online cloud storage services. Having an extra copy of your files ensures that you won’t lose everything if hackers access your account.
4) Avoid Public Wi-Fi Networks
Public Wi-Fi networks aren’t safe spaces to connect to because anyone nearby could potentially hack into your connection. It’s best to avoid public Wi-Fi connections altogether. Instead, only use trusted connections, such as your home router, when connecting to the Internet.
5) Be Careful When Opening Emails
Email attachments are usually the first point of contact between businesses and customers. However, they can contain viruses or malware. Make sure you always open attachments from people you trust before opening them. If you don’t recognize the sender, mark the message as spam instead.
6) Train Staff About Cybersecurity Practices
If you work with staff members, train them on how to avoid cybersecurity issues. They should know how to identify phishing emails and other types of scams. Also, tell them to report suspicious activities right away. This will help them protect their own and the company’s data.
The Bottom Line
Cybersecurity is one of the biggest challenges facing financial institutions today. Fortunately, there are ways to mitigate cybersecurity risks. Implementing best practices like those mentioned above can minimize the risk of being hacked.