Cybersecurity in FinTech: How to Safeguard Assets in 2024
The transformation that FinTech has brought is amazing. It has facilitated the way people perform transactions making things more convenient. With that said, one of the biggest challenges with this innovation is maintaining security. As financial institutions apply new innovative techniques, cyber attackers are also evolving. The biggest threat is keeping hackers out.
A single attack could result in businesses losing billions of dollars. Aside from this, it can result in data breach fines and worst of all loss in customer trust. To avoid all this, FinTech companies that revolutionize the payment industry, need to maximize cyber security from the get-go. There are several ways of ensuring this is done in an efficient manner. This article will discuss how to safeguard client assets to combat cyber-attacks.
Contents:
- Identify potential dangers
- Create employee awareness
- Regular backups
- Adapt to changing realities
- Invest in innovative tools
- Final thoughts
Identify potential dangers
The first thing you should do is look for areas with possible threats. This allows you to plan. This means analyzing everything including:
- Business systems
- Customer data
- Company networks
By carrying out a thorough investigation, it becomes easier to identify areas that will pose a threat. During this phase also ensure you develop a system of storing data. Some questions that will guide you include:
- How will you store data?
- Who has access to data?
- Which areas can hackers use to get company information?
- How could a security breach impact your business?
Make sure you limit access to sensitive data. This reduces the impact of a data breach. Set clear guidelines on who has access to data so that individuals can be held accountable should anything happen. Change passwords regularly and make sure they remain strong.
Create employee awareness
One of the best ways to ensure data is safe is by training employees. This can make a significant difference. Some of the cyber-attacks have been due to a poor understanding of how to keep data safe.
Hackers can attack a company through the weak points which sometimes tend to be employee networks. In other cases, the attacks can be initiated by an employee. Examples of how attacks could occur include:
- Opening phishing emails
- Disclosing login passwords
- Losing company devices such as tablets
All these may put the company at risk. To avoid this from happening ensure that you provide training for employees. This helps them to avoid phishing and to identify suspicious activities. Make sure to outline the procedure and company protocols that emphasize customer data protection.
Regular backups
Backing up data regularly is a great way to detect and eliminate threats. It also helps you to avoid losing a lot of data. This can cost you a lot of money especially if it is customer data.
There are two ways of doing data backups. The first includes performing a backup for all your systems. This takes time and may be more expensive. Another option is doing this for select data. This should continue running regularly. Storing backups in a separate location is important. It adds an extra layer of security. It is better to use the cloud for such cases.
Adapt to changing realities
Technology is always changing, and this makes it a challenge for many businesses. The goal should be to continue adapting to the ever-changing digital landscape. As things change, so do hackers. They are constantly searching for new ways to break through security measures.
As more people adopt Blockchain to safeguard data, make sure you beef up the threat recognition measures. The number of cyber-attacks in 2024 is expected to increase. The cost of cyber attacks will reach nearly 14 trillion US dollars by 2028. This is more than double compared to the 10 previous years.
Invest in innovative tools
To combat new threats, you need to have the latest tools at your disposal. This gives you leverage over any type of malware including phishing attacks. The main difficulty many face is the cost of the right tools. However, there is something available for each type of business regardless of the size.
There are a variety of tools. The goal should be to pick something effective. Software that uses AI and machine learning can help you meet security compliances. Those using Blockchain technology can simply invest in smart contracts which are designed to make transactions safer and more efficient.
Final thoughts
Cyber attacks are always on the rise. This leads to loss of customer data, huge fines, and loss in trust. So to avoid this from happening businesses have to maximize on security measures. Starting with risk management helps you find which areas could be potential threats. It makes it easier to eliminate any issues.
The goal should be to always stay up to date with the latest transformations in the industry. This allows companies to adopt new tools that may be more effective in combating threats. Also, stay up to date with the ever-changing regulatory compliances to avoid any fines.
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