With inflation and interest rates rising and cyber threats increasing, businesses are constantly evolving to become more resilient. this month, Fintech Times highlighting how Businesses demonstrate this resilience against a myriad of factors, some within and some beyond their control.
Exploring different aspects of working from home and the growing role of generative AI in the workplace, Fintech Times is now focusing on another important topic for business resilience: fintech cybersecurity.
To get a better sense of what the current cybersecurity scene looks like, we reached out to experts to find out what the biggest fintech cybersecurity trends have seen so far in 2023. I asked
“We are facing increasing attacks and threats.”
Antanas KedisCISO of a payment solution provider Nexpayexplains how the fintech sector has had to adapt to the ever-increasing number of threats.
“In the face of increasing attacks and threats, as well as more stringent requirements for compliance with cybersecurity regulations, the fintech sector is increasing its focus on security measures such as third-party security. and compliance testing.
“At the same time, there is a trend to improve the efficiency and quality of incident response. Given the increasing frequency of attacks and incidents, extended detection and response (XDR ) should be introduced.
“From 2024 onwards, we will face many challenges as threat incidents such as ransomware and supply chain attacks surge and attackers become more sophisticated. The need to effectively defend against harassment poses significant challenges, and with the introduction of new standards such as the Digital Operational Resilience Act (DORA), ensuring compliance has become a pressing concern.
“These standards will put additional pressure on fintech companies, requiring them to comply with broader and stricter rules that incorporate a range of organizational, technical and operational measures. Businesses need to take strong action and cybersecurity companies are being asked to provide comprehensive solutions.”
Prevalence of ransomware and malware-related attacks
![Daniel Wood, Chief Information Security Officer, Unqork](https://thefintechtimes.com/wp-content/uploads/2023/08/Daniel-Wood-chief-information-security-officer-at-Unqork.jpg)
![Daniel Wood, Chief Information Security Officer, Unqork](https://thefintechtimes.com/wp-content/uploads/2023/08/Daniel-Wood-chief-information-security-officer-at-Unqork.jpg)
![Daniel Wood, Chief Information Security Officer, Unqork](https://thefintechtimes.com/wp-content/uploads/2023/08/Daniel-Wood-chief-information-security-officer-at-Unqork.jpg)
![Daniel Wood, Chief Information Security Officer, Unqork](https://thefintechtimes.com/wp-content/uploads/2023/08/Daniel-Wood-chief-information-security-officer-at-Unqork.jpg)
Daniel WoodChief Information Security Officer, New York-based enterprise software company UncorkHe also presents his take on the biggest security trends for 2023. “Beyond concerns around generative AI and data breaches, other cybersecurity trends that continue to impact fintech (and most other industries) include ransomware and other malware-related attacks, malicious third-party Party attacks include: third-party access to systems and data, software supply chain risks, and complex systems and platforms leveraging cloud computing services.
“Other concerns include business resilience in terms of data integrity, business continuity, and disaster recovery. Yes, if it relates to a legacy financial system that has not been applied.”
“Fintechs need to invest in R&D and collaboration to keep up with emerging trends.”
Michele TucciB2B SaaS Fintech Chief Strategy Officer and MD Americas credrabsaid: “Generative AI, like machine learning (ML) and large language models (LLM), has revolutionized fintech, transformed customer service, and enhanced financial data analytics and fraud detection.
![Michele Tucci, Chief Strategy Officer and MD Americas, Credolab](https://thefintechtimes.com/wp-content/uploads/2023/08/Michele-Tucci-chief-strategy-officer-and-MD-Americas-of-Credolab.jpg)
![Michele Tucci, Chief Strategy Officer and MD Americas, Credolab](https://thefintechtimes.com/wp-content/uploads/2023/08/Michele-Tucci-chief-strategy-officer-and-MD-Americas-of-Credolab.jpg)
![Michele Tucci, Chief Strategy Officer and MD Americas, Credolab](https://thefintechtimes.com/wp-content/uploads/2023/08/Michele-Tucci-chief-strategy-officer-and-MD-Americas-of-Credolab.jpg)
![Michele Tucci, Chief Strategy Officer and MD Americas, Credolab](https://thefintechtimes.com/wp-content/uploads/2023/08/Michele-Tucci-chief-strategy-officer-and-MD-Americas-of-Credolab.jpg)
“Data protection is paramount in financial institutions due to the sheer volume of data they handle. Notable trends for 2023 include increased ransomware, cloud-based, phishing and insider threats.” Future challenges include accelerating AI and ML adoption, quantum computing, complex fintech systems, open source software, and more third-party vendors.
“To meet these challenges, fintech companies need to invest in research and development, collaboration, and keep abreast of emerging trends. behavioral insights gleaned from AI- and ML-driven technologies during customer interactions with institutions.This data provides valuable information such as user device capabilities, input patterns, and session duration, so agencies can You can enhance behavior detection and reduce risk-related costs, but importantly, this approach completely anonymizes data and protects your personal information.
“Compliance management software streamlines risk assessment, policy management, and training to improve efficiency. Security information and event management (SIEM) solutions collect and analyze security logs from various systems to quickly Facilitate proactive identification and response Threat intelligence platforms provide real-time insights from a variety of sources to keep fintechs informed on the latest threats Data loss prevention using AI and ML techniques ( DLP) and fraud detection solutions protect sensitive data and prevent fraudulent transactions.
“By adopting these technologies, fintech not only reduces the risk of cyber-attacks, but also increases efficiency, compliance and security visibility, ultimately lowering costs and improving financial security in the evolving financial environment. It can strengthen trust and resilience.”
Do more with less
Sam Crowtherfounder and CEO of an independent real estate private equity platform Kasadaexplained: “The current economic pressures are making businesses very focused on increasing revenue and reducing costs.
![Sam Crowther, Kasada Founder and CEO](https://thefintechtimes.com/wp-content/uploads/2023/08/Sam-Crowther-founder-and-CEO-of-Kasada.jpg)
![Sam Crowther, Kasada Founder and CEO](https://thefintechtimes.com/wp-content/uploads/2023/08/Sam-Crowther-founder-and-CEO-of-Kasada.jpg)
![Sam Crowther, Kasada Founder and CEO](https://thefintechtimes.com/wp-content/uploads/2023/08/Sam-Crowther-founder-and-CEO-of-Kasada.jpg)
![Sam Crowther, Kasada Founder and CEO](https://thefintechtimes.com/wp-content/uploads/2023/08/Sam-Crowther-founder-and-CEO-of-Kasada.jpg)
“Fintech companies are being asked to do more with less while mitigating risks such as online fraud by bots. Achieving balance is a challenge.
“Some believe visible security verifications like CAPTCHAs give consumers peace of mind. However, CAPTCHAs create friction, hinder conversions, and degrade the user experience. You can easily bypass CAPTCHA.
“Fintech companies are choosing security strategies that optimize the user experience. For example, collecting more data signals allows companies to make informed decisions without impacting the user experience.” As well as invisible challenges that serve as modern and effective alternatives to traditional CAPTCHA techniques.”