Cybersecurity:  Top priority of Fintech firms

Fintech firms, expanding the structural enhancement of financial services, have promoted value creation and lowered the dependence of central intermediaries in the financial system chain.

These organisations need to strategise and devleop an extensive and strong cybersecurity network to protect the data and money of their consumers.

Security issues and lapses have heavy impact & long term consequences for the firm, its employees and customers. The average total cost of data breaches for the financial industry is estimated $5.72 billion in 2021.

A report, dated to 2019, revealed that almost 100% of companies had problems regarding APIs, privacy, security, sub-domains, etc. These threats are dangerous given the reliance of consumers on these services.

Data breaches have legal consequences. As per Section 43A of the Indian IT Act 2000 states that the firm is liable to pay damages is it fails to establish proper protocols to protect personal data.

A robust security framework has a number of benefits including strengthening consumer trust, increased productivity, compliance with the cybersecurity mandates and protection against cybercrimes (projected cost $10.5 trillion by 2025).

Cheese

Fintech firms should focus on implementing security protocols, proper training of the workforce, data encryption, preventing unauthorized access and detecting risks with third party vendors.