Fintech cyberattacks impact more than just money, such as breaching required compliance standards or eroding trust with customers.
Further, financial service providers have an obligation to protect their customers' data, in addition to their money. At the same time, attackers frequently target fintech companies due to their motivation for financial gain.
So, what can fintech companies do to prevent the next cyberattack from impacting their business? Let’s take a closer look to understand the importance of a proactive cybersecurity approach.
Importance of Financial Cybersecurity
To further showcase the importance of financial cybersecurity, an IBM research report notes that financial service providers are the most targeted by criminals for the last three consecutive years.
While fintech firms do not have to adhere to as rigorous regulations as their legacy banking counterparts, they still must take their security seriously. Proactive cybersecurity services such as pentesting offer fintech businesses one possible avenue to decrease their risk in the digital world.
Let’s take a closer look at a few of the core benefits of fintech cybersecurity.
While many common compliance frameworks come to mind, such as GDPR or PCI DSS, financial service providers must follow more stringent regulatory requirements than other industries. For example, PCI DSS requires financial institutions to implement an intrusion detection system to prevent breaches from spreading or going undetected.
With the added compliance requirements for financial service providers, it makes sense to consider a cybersecurity plan to protect your business accordingly.
Fintech Data Protection
While PCI DSS focuses on data protection, it isn’t the only compliance framework or law regulating the topic.
For example, the Gramm-Leach-Bliley Act (GLBA) of 1999 requires specific data security standards for financial information. While these higher standards bring peace of mind and increased protection against consumer data breaches, they also require businesses handling this type of data to invest more resources into security.
Lastly, financial institutions have an obligation to their reputation. Few things jeopardize a brand’s reputation than a cyberattack where a customer’s data or financial assets become jeopardized.
Further to this point, financial service providers must establish and maintain trust with their customers. A core component to this rests upon the security of customer’s data and money.
Benefits of Using a Fintech Security Company
While internal security teams play an important part for many fintech providers, leveraging the expertise of an external testing team brings many benefits. For example, with cybersecurity constantly evolving, new insights can enhance your internal team with tips shared by external experts.
Furthermore, many growing companies benefit from the increased scale external teams offer. Augmenting your internal staff with a scalable solution for testing becomes invaluable to many enterprises and rapidly growing companies.
Finally, centralized operations for pentesting empower teams to become familiar with the platform and increase efficiency. Legacy pentest data can be reviewed to find opportunities for optimization to existing workflows and processes. While the centralized data comes with its own vulnerabilities, working with a trusted partner to provide this platform alleviates this concern - especially when the pentest platform provider has gone through the proper compliance frameworks and implemented necessary security protocols.
Pentesting for Fintech Companies
If your fintech company needs a reliable cybersecurity partner for pentesting, trust Cobalt.
Cobalt’s Pentest as a Service (PtaaS) platform not only unlocks pentesting at scale but also prepares firms for compliance requirements related to pentesting - all of which aim to improve your security posture.