Cybersecurity had become prominent in the marketplace, especially when the typical enterprise turned upside down in the past two years. In the era of the new normal, it was vital for organisations from various industries to commence strategising a robust cybersecurity framework and assessment process to remain secure. Similarly, the financial services industry ever-increasingly experienced more significant threats concerning information theft, as the sector vastly deals with sensitive information of businesses and individuals. The surging complexities and technical dependencies in the fintech ecosystem have turned data more susceptible to security breaches.
The rising cyberattacks on fintech organisations
As per a 2019 report, privacy, security, and compliance due to outdated web applications, APIs, and subdomains became worrisome issues for almost 100 per cent of fintech companies. In 2020, the Indian fintech sector witnessed over 60 per cent of phishing activities outnumbering the healthcare sector. It is because attackers frequently target fintech firms out of their willingness for financial gain. Cybercrime in the fintech industry results in not only financial fraud but also damage & destruction of personal & financial data, embezzlement, reduced employee productivity, etc.
As the financial impact is enormous on fintech startups, it becomes almost impossible for them to recover from the severe consequences of financial cyberattacks owing to the lack of security technology and controls. The inability to revive the massive amount of lost resources to restore the hacked data and systems makes the sector vulnerable to cyber attacks. In fact, data breaches can make fintech firms liable to pay damages (Section 43A of the Indian IT Act 2000) for being unable to protect sensitive data. Such situations underline the essence of a proactive cybersecurity approach in the fintech domain, which will help prevent a company’s long-term reputational damage and decrease its risk in the digital world.
Potential benefits of implementing robust fintech cybersecurity
Today, leading SaaS platforms have developed impactful ways to solve massive cybersecurity problems. They strive to safeguard customer data and rebuild customer trust in SMEs and startups by empowering them with convenient access to global data compliances with zero hassle and delay. Here are further details on how these companies’ one-stop solutions can help build a robust cybersecurity framework.
Realising the importance of compliance, leading SaaS companies automate compliance with data security standards of SOC2, ISO 27001, PCI-DSS, etc. They strive to protect intellectual property through systematic risk governance approaches. Such a comprehensive cybersecurity foundation supports the identification of theft attempts, malware & sophisticated threats, preventing fines, penalties & social engineering attacks, and protecting confidential data.
Enhanced customer trust
A robust cybersecurity framework hugely contributes to financial inclusion and the growth of SMEs and startups. It enables a privacy-first approach, with immense social & economic benefits and heightened customer trust. But, establishing customer trust starts with incorporating robust information security solutions. With the compliance mentioned above in place, customers can remain assured of no more occurrences of breaches, identity theft, ransomware attacks, etc. In this way, customers trust the platform to protect their sensitive data.
When the fintech industry implements strong security standards (like improved firewalls, virus scanning, automated backups, etc.), employees experience high productivity levels. When security solutions get clubbed with technological innovations, employees can work with lower stress levels and maintain peace of mind, as they need not spend excess time on these tasks.
Cybersecurity threats will surely follow the fintech space, but it’s essential to constantly stay aware and monitor these threats to succeed in the growing marketplace. A robust cybersecurity foundation can be exceptional in uplifting the overall cybersecurity state in India by safeguarding data and preventing financial fraud in the fintech sector.
Views expressed above are the author’s own.
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