When developing a fintech application, the essential thing to consider is the security of the users. Unfortunately, creating a secure fintech application is not an easy task. It is time-consuming, complicated & expensive work to perform.
Fintech app development company deals with the many security options and tests to give you a secure application that users can adapt easily.
|Also Read: Challenges Of Cybersecurity In The AI Era|
Currently, the Fintech industry is juggling many security concerns. If your business is based in the fintech industry, cyber-security must be your top subject to worry about. To know what challenges the industry faced due to this, read the given article.
Risk to the Fintech Industry
- Cloud computing security
Financial services like mobile wallets, internet banking, payment gateways, and more rely on cloud-based platforms as these provide speed, accessibility, and easy-to-use services to the users.
It contains large amounts of data which requires more & more security from the cyber-attackers. Therefore, it is necessary to select a cloud provider whose protection is proactive & up to date.
- System difficulty & compatibility
Big Fintech companies have many branches and headquarters around the world. These are all associated with one another.
These systems are linked together. However, they may be incompatible or create complex linkages, resulting in network gaps. These gaps serve as access points for cyber-attackers.
As a result, sticking with a single or small group of third-party manufacturers and developers with a global reach and a suitable infrastructure is critical.
- Malware Attacks
Malware attacks are well known forms of cyber attacks, these develop in gaps and become more difficult to remove.
Unlike other attacks, malware can use multiple entry points from various sources such as pop-ups, emails, malign websites, third-party software, and more. As a result, these attacks are very dangerous as their transfer rate is high, and they can cause whole networks to crash.
- Crypto-related risk
In the last few years, cryptocurrency has gained a lot of popularity, becoming the main security challenge for fintech.
Hackers may exploit cryptocurrency transfers as an entrance point for data theft. Such security risk might result in huge financial losses and legal issues.
As a result, FinTech firms dealing with cryptocurrency should only use secure trading platforms.
- Management of digital identities
Management of the customers’ digital identities is a challenge for fintech app development companies. Fintech powers its mobile apps and other equipment with biometric sensors like fingerprint scanners to authenticate the users and enable authorized access to services.
The use of digital identities has powered the level of fintech cybersecurity. But, at the same time, it has become complicated to clone and manage all these identities. In addition, because many OTPs are needed to be generated every day for user authentication, many unique digital identities are required to be stored securely.
Solutions to prevent cyber attacks
Companies that care about the clients’ financial well-being & the users must provide an effective solution in a fintech application that protects them from cyber attacks.
- Data encryption
Encryption is to convert the information into code which requires a unique key to transform into a regular language. One can protect their data from complex encryption algorithms such as RSA, 3DES, and Twofish.
- Secure application login
A complicated password is better for Fintech security, but it is not enough to secure your application for attackers.
One must enter some authentication technology like-
- One-time password ( OTP)
- Detect unauthorized access by regular monitoring
- Short login session
- Adaptive authentication
By using these, the Fintech app development companies can add the extra potential of the users’ financial data & personal information.
- Protect the cloud
FinTech faces both potential threats in the cloud, including a larger attack surface. As a result, every organization should have a cloud security strategy in place, which they should monitor and enhance when new risks surface in the cloud.
Test the security of the application by a penetration test. This testing can be done at any time. This can help you detect vulnerabilities and patch them up with attack-resistant code.
- Review & changes
The continuous change in some features & functions of the application will automatically protect it from getting attacked by cyber-attackers.
The Final words
Fintech applications deal with a large amount of data related to the users’ financial & personal, creating the options for the cyber-attackers.
But as a startup in the Fintech industry, one must be careful of the security measures that can be taken to prevent the users’ data from making your application.
If you are also facing the same problem, then visit the website of Techugo, a top Fintech app development company capable of providing the product with total security measures taken.