How Fintechs can Protect Themselves from Cyber fraud?
By the time you finish reading this newsletter, the world would have witnessed one cyber security attack. ?
With a cyberattack occurring every 39 seconds, Financial Institutions (FIs) cannot afford to slack off. Research firm Statista estimates that losses from cybercrime will increase from $8.44 trillion in 2022 to a staggering $23.84 trillion by 2027. And 66% of Chief Information Officers (CIOs) are planning to increase investment in cybersecurity, reflecting a clear urgency to strengthen defenses.?
With threats such as phishing, data breaches, and ransomware attacks evolving every day, here’s how the fintech sector builds a reliable defense against online fraud. ?
Advanced Threat Detection?
Implementing advanced cutting-edge technologies powered by Artificial Intelligence (AI) and Machine Learning (ML) helps identify and neutralize potential risks in real-time.?
Data Encryption?
Robust state-of-the-art encryption techniques ensure the confidentiality and security of customer data. It offers an additional layer of protection against potential breaches or unauthorized access. ?
Multi-Factor Authentication (MFA)?
By implementing additional verification factors such as biometrics, SMS codes, or security tokens, MFA enhances security and successfully defends against cyber threats.?
Employee Training and Awareness?
Regular security audits and updates, along with comprehensive employee training programs, bolster cyber resilience. Additionally, fostering partnerships with cybersecurity experts and keeping up with industry best practices adds to the preparedness quotient. ?
Compliance Management?
With automated workflows, strong monitoring capabilities, and comprehensive reporting tools, FIs can proactively identify and address compliance gaps, minimizing the risk of penalties and protecting brand reputation.?
Remember, this is an evolving space. Cybersecurity is not a destination but a constant endeavor.?
?That’s it for now. See you again soon with all the need-to-know fintech updates!??
Stay tuned. Stay curious.