8 Reasons Why Cybersecurity in FinTech is Important?

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There is a critical importance of cybersecurity in the rapidly evolving FinTech industry. It witnesses a significant annual investment of $50 billion and is projected to reach a market size of $698.48 billion by 2030. With two-thirds of online financial transactions, the sector becomes a prime target for cybercriminals seeking financial gains.

There are various security breaches, such as The First American Financial Corp and Experian Data Breach. It underlines the vulnerabilities in the FinTech landscape.

The six common types of cybersecurity threats in FinTech are:

  • Data breaches
  • Identity theft
  • Loopholes in integration
  • Phishing attacks
  • Insider threats
  • Distributed denial of service (DDoS) attacks

The risks associated with these threats underscore the necessity for robust cybersecurity measures.

Why is Cyber Security in FinTech Important?

Eight compelling reasons for the importance of cybersecurity in FinTech are:

  • Securing diverse types of sensitive data
  • Ensuring secure data sharing
  • Managing digital identities
  • Preventing cross-platform malware infections
  • Avoiding cloud-based security risks
  • Complying with regulations
  • Mitigating the high cost of breaches

Nearly 75% of customers globally use at least one FinTech service, making cybersecurity imperative as the industry experiences substantial growth.

Also Read: Mitigating Cybersecurity Risks in Fintech

Avoiding Security Breaches in FinTech: Best Practices

To address these challenges, there are best practices for FinTech companies, including:

  • Adopting a secure-by-design approach
  • Following the shift-left rule to implement security measures early in the development lifecycle
  • Partnering with reliable cybersecurity consulting service providers

While eliminating cyber-attacks may be impossible, implementing top-notch cybersecurity solutions can significantly minimize risks. Adopting these measures enables FinTech businesses to prevent identity thefts, money theft, data breaches, application breaches, and other cyber threats. It ultimately safeguards their reputation and earns the trust of customers.

Read More: Cyber Security In Fintech: 8 Reasons Why Is It Important?

TalkFintech Bureau
TalkFintech Bureauhttps://talkfintech.com
TalkFintech is focused on the latest financial sector technologies and tools- covering all tech used by banks, investors, insurance, and wealth management sectors- and also conversations on retail financial management tools.

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