Role of FinTech in Cybersecurity
The need for security in financial transactions has been a growing concern since the beginning of online banking and commerce. The continuous evolution of technology has led to more streamlined channels, increasing risks due to an increased vulnerability to cyber-attacks. To effectively combat these threats, businesses across all industries must hire experts who are up-to-date with the current trends and can implement scalable and cost-effective solutions.
Blockchain, one of the most revolutionary technologies of our era, is the foundation for cryptocurrencies such as Bitcoin. Blockchain technology has many applications beyond financial transactions and digital banking. It creates a decentralized network that is spread across multiple servers.
One of the main features of blockchain that provides security is its encryption ability while maintaining anonymity. Data can be encrypted using public cryptographic keys stored on the network in a decentralized manner. Even if one node fails or gets hacked by a malicious party, the rest of the nodes will remain secure due to their distributed nature.
Over time, other technologies have emerged to offer security for online banking and financial transactions, such as digital certificates issued by trusted bodies. Blockchain, however, is a more secure alternative to digital certificates as it provides the following advantages.
- Immutability and transparency of data (due to its decentralized nature)
- Speed in transactions (decentralized network results in distributed consensus, thereby eliminating the need for intermediaries)
- Cost-effectiveness and greater scalability
- Data or asset ownership can be stored in a distributed manner, thereby eliminating the need for intermediaries and increasing efficiency of processes
To transition into a more secure, efficient, and transparent ecosystem based on blockchain technology, banks have started adopting Fintech services. Fintechs offer integrated security solutions that offer the aforementioned advantages of blockchain technology. Below are some ways that Fintechs can help banks combat security threats :
- Deep packet inspection – The ability to inspect all incoming data traffic and detect any anomalies allows for greater vigilance against zero-day attacks such as session hijacking, malformed packets, etc. This is one of the Fintech services that banks can use to mitigate network security threats.
- Advanced encryption and keys management – Most blockchain solutions allow the generation of private keys from a device or server with no offline storage option. This feature eliminates the need for hardware key storage, which adds extra layers of complexity, thereby reducing the chances of vulnerabilities.
- Malware and virus detection, prevention, and eradication services – Blockchain solutions provide a layer of protection from malware by keeping the core network free from malware. Furthermore, anti-virus software works to keep servers clean of viruses.
- Automated patch management – Patch management is an integral part of protecting networks from cyber attacks. It involves patching any outdated software (vulnerabilities that have been discovered) to keep the system safe from hackers.
It should be noted that many of these services are currently available on an individual basis, but by using a single blockchain solution along with Fintech security solutions, banks can reduce their IT costs and increase efficiency at the same time.
The role of Fintech in cybersecurity :
Today’s threat landscape is complex and growing rapidly, so cybersecurity experts across industries face the challenge of finding new ways to protect their networks. Financial technology has introduced a new range of products that make transactions simpler and improve tracking capabilities to counter cyber attacks. As these innovative products become more prevalent, cybercriminals will be looking for easier attack methods. This means that to remain a step ahead, businesses must have an intimate knowledge of all incoming transactions and process them with maximum efficiency and the highest levels of security.
An effective approach to cybersecurity involves continuous training and updates for all personnel across the organization and constantly monitoring their behavior. Some of the most important components of this strategy include:
Employee training :
Cybersecurity experts need to be aware of both common and advanced threats to create a comprehensive protection plan. All employees must be properly trained in how to identify and report suspicious activity.
This training should include:
- Recognizing threats before they harm the network or undermine business continuity
- Training on controls available in place to prevent malware attacks, noncompliance with security protocols, and insider job-related risks
- Employee education on common password practices and safeguarding of credentials
- Responsibilities of all parties involved in protecting networks from attack
Addressing the incoming threats :
Businesses need a security protocol that provides as much information about the threat as possible to combat cyber attacks. This is typically done through real-time monitoring and analysis. When suspicious activity is detected, the focus shifts to blocking the attack and halting any further damage.
Cybersecurity experts use various products to gather this information, including firewalls, IPS/IDS systems (intrusion prevention systems), vulnerability scanners, web application firewalls, and spam filters. Point-to-point encryption for all communication channels, including email and instant messaging, is essential for businesses with multiple offices or subsidiaries.
Automation of cyber defense :
The implementation of a fully automated cyber defense system provides maximum effectiveness by following these steps:
- Data collection: Collect as much information as possible to determine the severity of the attack. This data should be used to determine the scope of any damage and which steps have been taken to stop it.
- Analysis: Analyze this data to understand how the attack occurred and who may be behind it.
- Response: Implement a response based on these findings, typically through implementing a series of patches and countermeasures.
- Deterrence: Reduce the likelihood that an attack will occur again by removing the vulnerabilities and strengthening existing protections. While there are no guarantees for total prevention, companies must be proactive in their approach to cybersecurity; especially now as these threats become more common through new products and services being offered in the Fintech sector.
Not only will cutting-edge cybersecurity products and services help maintain maximum protection from potential threats, but it will also save time – which all businesses can use more of! As the data that is collected increases, so does its usefulness. This highlights the importance of regular updates and maintenance to ensure that any problems are addressed immediately. The most effective cybersecurity strategies also include regular employee training and testing so that all parties involved can remain up-to-date on the latest threats.
Protecting your business is essential in this modern era of information technology. With an increasing number of cyber-attacks occurring each day, the need for effective cybersecurity is more important than ever before. Fintech is now offering new tools to help achieve this goal, especially as more consumers demand greater protection.Have you been looking for more business opportunities? Well, PSP.Academy is the best place to find it! We have a team of experts who can help with marketing and advertising your company in order to get those new clients coming through the door – Register now to eminently propel and drive your prospect generation and conversion rates so they’ll be sky high before long!