FinTech and the cybersecurity industry go together like a lock and key. It’s a sector that holds huge financial and ransom-worthy data. Sensitive financial data make fintech companies a big prize for cybercriminals. It’s a nightmare for insurers because a small data breach will cause far more ripples than would be the usual outside the industry. This is why most banks are pushing cybersecurity higher up to protect their customers and their bottom line. The increasing investment in the FinTech sector makes it an ideal target market for cybersecurity service providers.
Here are a few cybersecurity threats that FinTech institutions are facing in 2022.
1. Mobile App Security Risk
A lot of banks and other FinTech institutions have launched their mobile apps for the ease of users. These apps have countless benefits for users but at the same time, many have become victims of malicious factors.
For example, Dave, a US mobile banking provider that creates financial opportunities for Americans was breached. Hackers were able to gain access to unauthorized data including passwords and personal details. It affected thousands of customers across the country.
That’s why almost all fintech institutes are protecting their apps with advanced cybersecurity solutions — which make it a target market for cybersecurity service providers.
2. Digital Payment
Since the advent of the 21st century, more and more businesses have gone digital. The COVID-19 pandemic also gave a huge push to e-Commerce that has perpetuated the use of digital payments.
Malicious actors found it a very lucrative opportunity to exploit unprepared organizations and steal consumer data for financial gain. To avoid this, businesses are using best cybersecurity practices such as two-factor authentication, ensuring PSI DCC compliance, and implementing advanced solutions to avoid malware and data theft.
3. Customer Data
In the FinTech sector, protecting customer data is the most important job of the IT team. If banks face a breach, the hackers will get access to sensitive customer data and use it to exploit them. Such cyber attacks not only affect the customers but also put the bank’s reputation at stake. In turn, banks may lose the trust of their customers, insurers, investors, and other financial institutions.
Keeping this in view, cybersecurity experts are in high demand to prevent malicious factors and provide complete protection to banks and their customers. On the other hand, this could be the perfect target market for cybersecurity service providers. They can become security partners of FinTech institutions by providing the best cybersecurity products and services.
Why Should Fintech be the Target Market For Cybersecurity Service Providers?
Investors and customers look for those financial institutions that have safe and secure networks and systems. The cost of a single cyber attack can bankrupt the whole financial institution and lose the trust of investors. That’s why a good cybersecurity plan is vital to safeguard the bank’s reputation and customer information.
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