Trust in banking and financial services is fragile, and maintaining it relies on the security and privacy of these institutions. Unfortunately, data from a new survey reveals that 92% of the most popular apps from banks and other related businesses contain exposed credentials like API keys – an alarming vulnerability which could be used in malicious scripts and bots to attack APIs and steal data, with disastrous consequences for businesses owners, consumers, investors; basically anyone who uses banking or financial services online. In this blog post we will explore how irresponsible development issues are putting customers at risk for identity theft, cyber frauds, account takeovers as well as discuss guidance on what secure practices you should use when developing essential applications like there’s no tomorrow (because if nothing changes soon enough – there might not be).
Why is cybersecurity important in fintech?
With the digitization of financial services, including online banking, payments, and investments, fintech has become one of the primary targets for cyber-attacks. Breaches in cybersecurity can lead to significant financial losses for companies and their customers, not to mention the risk of reputational damage. Companies need to adopt robust cybersecurity practices to safeguard their systems and data from potential threats. This includes encrypting sensitive data, regularly updating software, and conducting regular security audits. Additionally, companies should train their employees on cybersecurity best practices to prevent potential attacks through human error. By prioritizing cybersecurity, fintech companies can build trust with their customers and establish themselves as industry leaders.
Fintech Security Challenges
The most common security challenges faced by fintech companies include data breaches, phishing attacks, identity theft, ransomware attacks, and regulatory compliance. Cybercriminals view fintech companies as high-value targets, making them particularly susceptible to sophisticated attacks.
- Data breaches remain a significant threat to companies holding sensitive financial information, which can lead to reputational damage, legal ramifications, and financial losses.
- Phishing attacks often take the form of fraudulent emails or fake websites that trick users into providing login credentials, personal information, or financial data.
- Identity theft can occur as a result of data breaches or phishing attacks, resulting in substantial financial losses for both companies and individuals.
- Ransomware attacks involve cybercriminals taking control of a company’s systems and demanding payment in exchange for releasing them.
- Regulatory compliance challenges arise due to ongoing changes to financial regulations globally, and fintech firms must continually monitor and comply with these regulations to maintain their market presence.
New Technologies Rising Fintech Security Concerns
The realm of fintech has seen explosive growth in recent years, with artificial intelligence (AI), the Internet of Things (IoT), and other innovations enabling new ways to manage money and make transactions. However, with these advances come new risks, fintech companies must stay vigilant and proactive in their approach to security, investing in cutting-edge tools like Q-MAST and Q-Scout to protect their clients’ sensitive information. As the fintech industry continues to push the boundaries of what’s possible, the need for robust security measures will only grow more urgent.
How to protect your fintech app
Hire an Experienced Development Team
Investing in a skilled and experienced programmer is critical to ensure the safety and precision of Fintech apps. A professional development team can guarantee security at every stage of programming and throughout the lifecycle of the app.
Use Code Obfuscation for Enhanced App Security
Cybercriminals often create clone apps that mimic legitimate ones, tricking unaware users into providing personal details that can be exploited for fraudulent activities. To counter this threat, Fintech apps can leverage code obfuscation techniques, such as encryption, metadata removal, false tags, and meaningless code insertion. These tactics aim to distract attackers from the relevant content and protect users’ sensitive data.
Secure APIs and Cloud Servers
Ensuring a secure infrastructure is critical for the security of any Fintech application. Cyber attackers frequently target application programming interfaces (APIs) and cloud servers as potential weak links. By implementing back-end security measures, you can prevent data breaches. To mitigate risks, it’s important to limit the number of third-party automations, and build critical components from the ground up. It’s also recommended to select reputable partners and vendors for advanced functions.
Fintech app security necessitates extensive testing all through the development life cycle, as well as a few additional stages. Q-MAST is for app developers to add mobile app security testing into their developer process. With Q-MAST, developers can integrate full automated mobile app security testing into their CI/CD pipeline to ensure a solid, secure final mobile app. Quokka’s reports provide threat details, remediation guidance and pass/fail evidence. Because of the proprietary technologies included in Q-MAST’s advanced analysis engines, Q-MAST digs deeper and tests more thoroughly than any other MAST solution in the market.