7 Cyber Threats FinTech Companies Should Watch Out For

Businesses of all sizes deal with cyberattacks daily, and fintech companies are no different. However, they might be experiencing cyber threats more often due to the information they have stored in their databases. Hackers are always trying to find new ways to create a data breach, so knowing what to watch out for can give you an advantage in preventing potential damage.

If you are a part of a fintech company, here are some common cybersecurity threats you might come across with:

1. Ransomware

Ransomware attacks are a huge problem not only for fintech companies but all businesses around the globe. While hackers usually target healthcare providers, banks and fintech companies are close behind. If a ransomware attack is successful, it will showcase the lack of cybersecurity of a fintech company, and chances are its reputation will be at risk.

Considering that fintech companies store the financial and personal information of their clients, proper cybersecurity measures are a must. Besides the obligatory antivirus software, make sure you have a backup ready. It can be helpful in case your important data is locked and you can’t access it.

2. Data theft

Hackers are after data and financial information, and fintech companies who don’t have the best cybersecurity measures in place could be offering them on a platter. Therefore, every fintech company needs to invest in its system.

Online shopping skyrocketed during the pandemic, and people are now paying for products and services with their credit cards all the time. If a cybercriminal manages to create a data breach, they might have access to this confidential information.

3. The Internet of Things

The Internet of Things or IoT is becoming more popular within companies and businesses, but these devices could also be a gateway for cybercriminals to gain access to a network. Every gadget, including tablets and smartphones that are connected to the same network, could be exploited by hackers.

If you want to prevent this, start by teaching your fintech company employees the importance of keeping their devices updated. The updates should include all security patches. Furthermore, change all default passwords for IoT devices in the office. Employees working remotely should secure their devices by downloading antivirus software, and ad blocker with a VPN.

VPN is recommended for people working from home because it encrypts the information they send or receive, including their login credentials. Some like to work from cafes and libraries, which often include unsecured networks. Therefore, they could be connected to an open Wi-Fi network and still manage to avoid cybercriminals who might be lurking on the same network by using VPN.

4. App security

Fintech applications can be found in many well-known banks and are useful for quickly checking client information. But just like every other app, this software could be used by hackers to access databases they shouldn’t be seeing. Therefore, app security needs to be at its highest.

When a fintech app is created, the developers need to make sure the code is impeccable. Thorough testing is mandatory because the app will be dealing with financial and personal information. Paying attention to cybersecurity features should be at the top of the list.

5. Phishing

Hackers use phishing to obtain login information which can be used to access bank databases and their client’s financial information. This type of cyberattack is quite common, especially among bank employees. Phishing usually includes a link to a fake website where a person is required to type in their login credentials. These websites seem legitimate at first look, and people might have a hard time recognizing they are a scam.

The best way to prevent phishing is to teach your employees how to spot it. Employee training and cybersecurity workshops should be a priority, especially for fintech companies. As previously mentioned, phishing websites might seem perfect, but there will be a lot of details that can indicate you are dealing with a cyber threat. Employees will also feel more comfortable using tools such as NordVPN adblock and antivirus software, as it will give them an extra layer of security.

6. Multifactor identification

Multifactor identification might seem like the best way to secure an account, but cybercriminals are getting better at bypassing security measures. They can crack one-time codes and are also capable of copying your SIM card.

Multifactor identification is generally a great option. It is designed for secure login, and you should encourage both your employees and clients to make use of multifactor identification. But again, a fintech company needs to be prepared for every scenario and anticipate a cybersecurity threat.

7. Old banking systems

Traditional banks have been exploring the world of fintech in the last couple of years, and many have already merged with fintech companies. But before that happens, the bank itself needs to make sure the banking system they use is working properly. It means patching it up and downloading updates.

You will eliminate the possibility of a data breach and make the integration between fintech and the old banking system as smooth as possible. It is an important step because of all the cybersecurity dangers that are present in the financial field.