Most people have ditched their cash for debit cards, Apple Pay, and other digital payment platforms for managing their money. The convenience of going cashless is undeniable, but so are the security risks.
The Rise of Fintech
As digital payment solutions have become the norm, fintech has made lofty advances. The threats have followed suit: data breaches, fraud, and security gaps put consumer trust on the line, along with company reputation.
Fintech cybersecurity leaders know digital payments have turned the financial industry into a goldmine for malicious hackers. At the forefront of cyber security, best practices include locking down transactions, protecting user data, and avoiding attacks before they hit.
Why is Cybersecurity in Fintech Important?
A data breach within a financial organization can be disastrous. The 2019 Capital One breach demonstrated this when a threat actor gained access to over 100 million customers’ accounts and credit card applications.
Nobody wants to deal with the nightmare of a financial services data breach. But unlike traditional banks, most fintech firms aren't subject to the same stringent security regulations, yet they handle just as much money and sensitive customer data.
With access to banking details, personal identities, and transaction histories, fintech companies are prime targets for threat actors.
Additionally, the fast-paced development of fintech applications leaves an opening for a financial services data breach due to critical security gaps. The stakes? Even a single security breach places a company at risk of stolen money, exposed personal data, regulatory fines, and lost consumer trust.
Customers trust digital platforms with their livelihoods, savings, and investments. If fintech cybersecurity fails, people lose more than money; they lose trust in the system. Fintech firms must protect users with strong encryption, fraud detection, and fast threat response to ensure financial security for everyone.
Finastra Data Breach
In November 2024, Finastra, a leading financial technology company serving over 8,100 clients, including 45 of the top 50 global banks, experienced a significant data breach.
Finastra made a chilling discovery: a hacker had spent a full week inside their systems, stealing 400GB of sensitive financial data. By the time the breach was detected, the stolen data was already up for sale on darknet forums.
Finastra has since shut down the compromised platform and is working with U.S. and U.K. authorities to track the attacker and assess the damage.
Implementing strong cybersecurity best practices is one way to prevent facing an experience like this one within your organization.
Best Practices to Improve Your Security Posture in Fintech
Let’s break down two of the best and most straightforward strategies to keep your business (and your customers) safe.
1. Train Your Staff
Employees are hackers’ favorite target, here’s how to change that.
- Phishing emails and scams are the #1 way threat actors breach fintech systems. Social engineering attacks, such as phishing emails and fraudulent requests, are among the most effective ways hackers infiltrate fintech systems.
- Untrained employees are the easiest way in. Ongoing security training helps employees spot red flags, recognize suspicious activity, and follow security protocols. With the world’s largest security awareness training content library, Mitnick Security will help train your team when and where it's convenient.
With a security-first culture you can reduce human error.
2. Test Your Systems Regularly
Cyber threats keep evolving, and security gaps can appear without warning. Regular testing helps find and fix weaknesses before hackers do.
Fintech companies should:
- Conduct Vulnerability scans
- Organize recurring penetration tests
- And security audits to check for authentication, encryption, and access control flaws.
Automated tools can catch common issues, but human-led testing is best for spotting complex threats.
Understand Cyber Security Best Practices in Your Fintech Business
Hardening you security security isn't just about technology; it requires well-trained employees, regular system testing, and strict compliance with industry standards.
At Mitnick Security, we understand that fintech organizations face a constant challenge with the battle against ever-changing cyber threats. Our Global Ghost Team™ builds a prioritized security plan designed to your needs, giving you a clear, step-by-step strategy.
Want a simple way to strengthen your defenses?
Download "5 ½ Steps to Avoid Cyber Threats" and start securing your fintech business today.
