Fintech industry :Ten cyber security challenges

Introduction: Cyber ​​security threats will always be an urgent issue facing financial institutions. Network security and data protection companies must always maintain a leading position in the market, looking for innovative solutions to the challenges of financial technology network security, in order to maintain consumer trust in financial platforms.

Fintech is facing challenges in cyber security. Over the years, hackers and cybercriminals have used fast-changing technology to capture outdated technical loopholes and human errors to carry out organized attacks on financial institutions, causing huge losses and market reputation risks. This article summarizes 10 cybersecurity challenges faced by financial technology and provides corresponding recommendations.

Cloud computing issues

Most digital financial services, such as payment gateways, online banking, digital wallets, etc., are implemented through cloud-based computing platforms. Although cloud computing technology has the advantages of scalability, easy access and high efficiency, it has a large amount of data flowing into it, making it a perfect target for network attacks. Therefore, it needs to be protected in a different way from the traditional local data center. It is important to choose a reliable and secure cloud service provider that can provide design according to customer needs.

Third party access

Financial institutions such as banks usually use third-party services for many applications. These applications are integrated into the organization's main system and become an intrusion channel for hackers to pretend to be legitimate employees or third-party users. In order to reduce the risk of hacker intrusion, banks must carefully choose trusted third-party service software, while reducing or restricting access to major systems through any third party.

System complexity and compatibility

Large financial institutions usually have multiple branches around the world, and each branch has infrastructure systems provided by different vendors. These systems are connected to each other but may not be compatible, or they may create complex connections, thereby creating loopholes in the network. These vulnerabilities constitute the entry point for cyber attacks. Therefore, the key is to cooperate with one or a few third-party suppliers on a global scale to build a compatible infrastructure system.

Malware attack

Malware attacks are the most prominent form of network attacks. Malware is developing rapidly, and detecting and removing these software has become more challenging. Unlike other attacks, malware can be invaded through multiple entry points such as emails, third-party software, untrusted websites, and pop-up windows. Due to the extremely fast spread and unpredictability, malware can cause the entire network to crash. Therefore, when building the system, you should choose a base facility provider that frequently updates malware detection components and has automatic real-time malware detection capabilities.

Money laundering risk

Encrypted assets, which have become more and more popular in recent years, have become one of the major network security challenges facing financial technology. Since the source of funds is concealable, encrypted assets may become a tool for illegal money laundering. In addition, encrypted asset transactions may become a scam and entry point designed by hackers to steal data, causing serious losses and law enforcement problems. Therefore, financial institutions involved in encrypted assets should be vigilant, only use secure platforms for transactions, and must choose trusted traders and mainstream encrypted assets generally recognized by the market.

Identity verification and theft

Financial institutions often use identity authentication tools such as one-time payments, biometrics, and passwords to provide security and identity verification. However, these methods can often be copied and become the entrance for hackers to steal large amounts of funds. Financial institutions must use multiple verification gateways based on different principles to ensure the difficulty of penetration.

Online digital platform

All financial institutions have turned to online platforms. This means that most users access their accounts through mobile phones and computers, making the device easy to be hacked. Therefore, even if the bank's network is secure, it cannot detect vulnerabilities in the user's device. Therefore, customers must conduct large transactions through more secure devices such as laptops and desktops. In addition, it is recommended to install anti-virus software with real-time detection and protection browsing functions on these devices.


Depending on the type of service, financial technology must meet corresponding compliance and regulatory requirements. For example, the data protection law insists on multi-factor authentication and encryption of online transactions, and must monitor customers for illegal money laundering or tax evasion. These regulations are based on specific services such as insurance, lending, stock markets, and financial consulting, which means that some regulations are common compliance requirements for all institutions.

The implementation of these regulations is the standard for maintaining the security of customer funds and data. Ignoring these requirements or failing to meet them may result in fines and government intervention. Therefore, financial institutions need to strengthen their attention to compliance.

Existing system migration

Financial institutions are rapidly shifting from traditional system technology to better and faster operating methods. However, during system migration, the core system is vulnerable to cyber attacks, especially when the system is built by an older generation of technical infrastructure. Therefore, banks must implement newer technologies in stages and adopt appropriate security control measures, and must always have a crisis management protocol to prevent data loss or cyber attacks.

Infrastructure scale and financial management

The financial services market is extremely competitive. Because customers are highly price-sensitive, financial institutions are trying to provide more facilities and services at a lower cost, and this usually leads them to cut costs on network security infrastructure and other aspects.

Financial institutions usually have a large scale of operations. With the rapid development of technology, constantly changing the infrastructure to meet each new technological change may require higher capital investment, but the losses caused by cyber attacks will far exceed the cost of replacing the infrastructure. Therefore, financial institutions must increase investment in cyber security.

In short, financial institutions deal with millions of bytes of confidential data related to customers' personal and financial details every day, which is undoubtedly a "golden mountain" for hackers. Cyber ​​security threats will always be an urgent issue facing financial institutions. Network security and data protection companies must always maintain a leading position in the market, looking for innovative solutions to the challenges of financial technology network security, in order to maintain consumer trust in financial platforms.

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