{"id":423,"date":"2020-05-26T16:22:56","date_gmt":"2020-05-26T16:22:56","guid":{"rendered":"http:\/\/www.cyberlaws.org\/?p=423"},"modified":"2021-07-05T16:57:34","modified_gmt":"2021-07-05T16:57:34","slug":"cyber-security-challenges-faced-by-fin-tech-start-ups","status":"publish","type":"post","link":"https:\/\/www.cyberlaws.org\/cyber-security-challenges-faced-by-fin-tech-start-ups\/","title":{"rendered":"CYBER SECURITY CHALLENGES FACED BY FINTECH START-UPS"},"content":{"rendered":"
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Cyber Security Challenges by Fin tech<\/h1>\n

cyber Security Challenges Fintech. This era of digitization and digitization, where every segment of businesses is using technology to provide services to customers, banking and financial industry has transformed their services by financial technology- FinTech.<\/p>\n

Fin Tech were providing their services in the form of e-wallets, online and mobile payment systems (Paytm,PayPal, Apple Pay), virtual buying of stocks, etc. But the recent times did bring a bunch of new disruptors that will displace traditional e-commerce providers.Such new FinTechstart-ups are offering more efficient services, seamless customer\u2019s experience, and free person-to-person payments.<\/p>\n

FinTechs business can increase profitability and enhance a company\u2019s performance while helping them improve customer service. FinTech also provide an opportunity for companies to expand their portfolio online while solving industry issues such as credit card processing, money transfers, or processing a loan.<\/p>\n

But everything is not so smooth with Fintech business. There are few cyber security challenges and risk associated with Fintech business, which every FintechStatups shall be aware of.<\/p>\n<\/div>\n

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WHAT IS FIN TECH?<\/strong><\/h3>\n

Fin Tech is the abbreviation used for Financial Technology which aims to compete with traditional method of finance. There are many financial institutions consider this term as backend of their business and sometimes regular banking apps are included in this term.<\/p>\n

Fintech business includes mobile payments, money transfers, loans, crowd funding, asset management and many other things.<\/p>\n

In simple words-FinTechis the implementation of modern technology in traditional financial services and in the management of financial aspects in various companies and business. Anything from the financial mobile apps and new software installed, processing the money transactions and calculating business models.<\/p>\n

Risk in Financial Sector:<\/strong><\/p>\n

Even, in general ,every individual and organisation ,\u00a0 are worried about information and cyber security , conditions in financial sector is more critical\u00a0 and fin tech business take the issues more seriously. Some of the recent studies shows that banks are investing a large amount of their funds in designing and implementing security to safeguard themselves from cybercriminals<\/p>\n

Few more areas of concern includes cloud based technologies, mobile updates and system upgrades. These findings show that cyber security is the most important risk which the Fin Tech companies are facing.<\/p>\n

CYBERCRIME AND CYBER SECURITY IN FINTECH LANDSCAPE<\/strong><\/h3>\n

As FinTech start-ups and companies continue to disrupt the global financial landscape, a peculiar feature and perhaps their biggest advantage is that they are not held back or burdened by law, regulations, or existing systems. Also, they are more aggressive, more agile, and more willing to explore and make risky choices. But this total dependence on technology and adventurous attitude to aid financial services delivery may also be their greatest weaknesses.<\/p>\n

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FINTECH FIRMS ARE FACING CYBER SECURITY CHALLENGES \u00a0IN FOLLOWING AREAS<\/strong><\/h3>\n
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CYBER SECURITY CHALLENGES FACED BY Fin Tech START-UPS<\/figcaption><\/figure>\n

Application Security<\/strong><\/p>\n

Fin Tech firms mainly relies on applications that can access users\u2019 financial profiles to perform a variety of real-time transactions. Applications are used by multiple persons and, are an increasingly common attack vector, and vulnerable code can be exploited as an entryway into financial networks.<\/p>\n

FinTech firms and Banking companies need to ensure that a secure application security strategy such as a virtual private network is in place to protect user data. This should include a web application firewall enabled with current threat intelligence to identify and mitigate known and unknown threats, as well as to detect and patch vulnerabilities<\/p>\n

Network and Cloud Security<\/strong><\/p>\n

Like other organisations, many FinTech<\/a> firms also utilize cloud services to provide consistent, salable performance with lower upfront costs, rather than the traditional network. However the cloud infrastructure shall be secured differently than a data center or traditional network. Banks and FinTech firms must ensure that the same security standards they apply to their networks are applied in the cloud.<\/p>\n

Along with detection and prevention, this security must also be dynamically salable and adaptable to ensure that is can grow seamlessly alongside cloud use. Additionally, in order to secure financial data, FinTech firms need to implement aloud access security, along with internal segmentation to improve data visibility while integrating industry security standards.<\/p>\n

Inadequate Threat Intelligence<\/strong><\/p>\n

Threat Intelligence is another challenge for Fin Tech firms, an integrated defense needs to be enabled with automated threat intelligence to become a holistic system. As Fin Tech firms and banks enter partnerships, it will be impossible for IT teams to gather and assess all of this threat intelligence promptly manually. Automation, artificial intelligence and Machine learning will be integral to this process.<\/p>\n

Cyber criminals are already leveraging automation to make attacks more persistent and effective. Likewise, artificial intelligence, machine learning and automation integrated into network security tools enable the detection and prevention of attacks in real-time, allowing organizations to keep pace with cyber-criminals.<\/p>\n

LACK OF ESTABLISHMENT OF BETTER SECURITY PROTOCOLS<\/strong><\/h4>\n

This is one of the most significant issues that Fin Tech start-ups firms face is selecting best security mechanism, like security protocols to enhance encryption data. Inadequate security protocols, data is easily exposed, leaving companies vulnerable to attacks.<\/p>\n

Tunneling protocols used in VPNs are effective at encrypting Fin Tech data. Some of the best-known tunneling protocols include:<\/p>\n