ORM and Cybersecurity in Fintech
Fraudulent transactions, identity theft, denial of service attacks, database breaches are on the rise. These pose an existential threat to the fintech sector. Some of the most widely reported cyberattacks on the financial industry have essential targeted critical economic infrastructure causing serious service disruptions.
Fintechs must keep an eye out for cybersecurity attacks that exploit security and system vulnerabilities.
Types of Cyberattacks-Prevention & Mitigation Strategies:
- Phishing attacks are a common method used by cybercriminals to trick individuals into revealing their sensitive information, such as login credentials or credit card details.
- Robust cybersecurity measures, including employee education, email filters, and advanced threat detection systems, are crucial in detecting and mitigating phishing attempts, protecting both fintech companies and their customers.
Supply Chain Attacks:
- Fintech companies often rely on third-party vendors and suppliers, making them susceptible to supply chain attacks. Cybercriminals target the weakest link in the supply chain to gain unauthorized access to valuable data or compromise systems.
- Conducting thorough security assessments of vendors, monitoring their cybersecurity practices, and establishing strong contractual agreements are crucial steps in mitigating the risks associated with supply chain attacks.
- The rise of digital currencies, such as Bitcoin, has brought new cybersecurity challenges. Fintech companies operating in the digital currency space must implement robust security measures to protect against unauthorized transactions, wallet breaches, and other digital currency-related risks.
- Implementing secure wallets, encryption, and strong authentication mechanisms is essential in safeguarding digital currency transactions and maintaining the trust of customers.
- Ransomware attacks involve encrypting a victim’s data and demanding a ransom in exchange for its release. Such attacks can disrupt fintech operations, compromise sensitive customer data, and result in significant financial losses.
- Implementing robust backup systems, network segmentation, and regular software updates can help prevent ransomware attacks and minimize the impact in the event of an incident.
- Implementing multi-factor authentication (MFA) adds an extra layer of security to fintech platforms, making it harder for attackers to gain unauthorized access.
- By requiring users to provide additional authentication factors, such as a unique code sent to their mobile device, MFA significantly reduces the risk of unauthorized account access and protects against identity theft.
- Cloud computing offers numerous benefits for fintech companies, including scalability, cost‑efficiency, and accessibility. However, it also introduces new cybersecurity risks, such as data breaches and unauthorized access to cloud-based systems.
- Fintech companies must implement strong encryption protocols, access controls, and regular security audits to ensure the security and privacy of data stored in the cloud.
In a sector highly vulnerable to cyberattacks, ORM becomes even more important. A rumour, a security breach could be mainstream Breaking News. You might be forced to shut up and customers might leave you in hordes.
Identity access management, multi-layered authentication processes, roles and permission restriction, and data backup processes should be robust and stress tested at regular intervals.
You must have a robust ORM process in place to handle such crisis situations. There must be clearly defined SOPs in place. Well-trained SPOCs, social media personnel, liaison, and policy teams should be sensitive to social media and media interactions. Handouts on DOs & DONTs must be put in place and communicated to stakeholders and media-facing teams. Guidelines on social media interactions should also be formulated and strictly adhered to.
ORM for fintech is a very niche space and is best handled by professional organisation like us. We manage ORM for some of the high-visibility Fintech, Edtech and Crypto companies in India, and we can do this for you