Why Do Financial Technologies Needs Cyber Security?

Why Do Financial Technologies Needs Cyber Security?

By CFO Tech Outlook | Tuesday, July 07, 2020

Financial technology (fintech) was initially created to help companies manage their finances and now handle payments, investment, asset management, insurance, and beyond.

Fremont, CA : Fintech has become a recent phenomenon. Fintech is nothing but what has been detected is the rise in cyberattacks on fintech companies in past years. Even though they have been around since the late 2000s, cyberattacks on the fintech industry have been spotted since 2017. Currently, there are more than 12,000 fintech startups worldwide, stating that the hackers are targeting businesses for financial reasons and now have even bigger targets to go after. Currently, 76 percent of cyberattacks are financially motivated, which means a 76 percent chance of a fintech company being in danger than most sectors, knowing the amount of data and financial information is held. However, not meaning that other industries are safe from financial attack.

Fintech and cybersecurity

Because of the sheer amount of people that use financial technologies nowadays, the amount of people at risk of data breaches of sensitive information is a high risk. This is why it is essential to make sure that fintech companies keep their security up. For their staff and customers’ safety and their overall business wellbeing. Protection of customers and staff are at the forefront of cybersecurity concerns, and what is a grave risk of being affected in the aftermath of a data breach.

Top 10 FinTech Consulting/Services Companies - 2019Denial-of-service attack

Denial-of-service attacks have been rising since 2017 when big businesses became the targets of hackers. For several days, these three banks became victims of a denial-of-service attack, flooding their services with artificial traffic, which caused a halt of all real traffic from thousands of users. Although no data was taken from any customers, there was access to sensitive information due to the security flaws on the online banking portals.

Phishing

Fintech companies are at substantial risk of phishing scams due to the number of people using fintech services. Most of the population now has online banking, making anyone a target if the right measures are not taken. Phishing consists of hackers posing as trustworthy bodies, such as a well-trusted fintech company and extracting sensitive information from users.

Although the financial sector has been on the rise for cyberattacks and increased targeting by hackers, financially motivated hacking is widespread amongst the medical, government and financial sectors. Ensuring that sensitive data is always protected should be at the forefront of customer safety, which can be done by providing all available information is securely disposed of and destroyed.

See also: Top Cyber Security Companies

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