Cybersecurity in Fintech: Strategies to Combat Emerging Threats
Fintech is booming. More and more people are managing their finances entirely online – everything from investing in cryptocurrency to everyday mobile banking.
But that convenience does come with a downside: increased risk. Cybercriminals are increasingly targeting finance platforms and the people who use them, with attacks also becoming more sophisticated all the time.
Let’s take a closer look at where the biggest dangers lie, and what both fintech companies and individuals can do to protect themselves.
The Fintech Boom: A Double-Edged Sword
Apps that enable instantaneous cryptocurrency trading and bill splitting with pals are fantastic – until they give hackers access. Since fintech systems handle real money and frequently have limited margin for mistake, they are popular targets.
Attackers are now using:
- Phishing scams to steal user credentials,
- Malware to access sensitive data from mobile apps,
- Social engineering to impersonate investors or support agents,
- Fake crypto investment platforms to lure users into giving up wallet keys.
Worse still, these aren’t just isolated hackers. Many attacks are carried out by highly organized cybercriminal networks, some operating across borders.
As CNN recently reported, the FBI has been tracking a sharp rise in digital investment fraud – much of it targeting everyday users with professional-looking scam sites and apps.
Why Is Fintech So Vulnerable?
Several things make fintech platforms particularly attractive to cybercriminals:
- Data-rich systems: These platforms collect sensitive personal and financial info.
- Always-on access: Users access apps from phones, tablets, and laptops – often from public or insecure networks.
- Startup culture: Many fintechs are lean, fast-moving startups that prioritize product growth over cybersecurity.
- API exposure: Open APIs used to connect services can be entry points for attackers if not properly secured.
Crypto Fraud Is Taking The Lead
As more people invest in digital assets, so too has crypto fraud exploded. One of the clearest examples of this shift can be seen in the infographic below.
Here’s what stands out:
- Investment scams made up over $829 million of crypto fraud, averaging $34K lost per victim
- Romance scams and business impersonation added another $319 million
- Even with signs of slowing growth, the total losses remain dangerously high
The pattern is clear: people are being duped not just by hacking, but by trust-based deception – fake advisors, influencers, and apps that look legitimate.
Simple But Effective Cybersecurity Tactics
While being aware is useful, the next step is to arm ourselves with some tactics to prevent falling victim to fraud or theft.
- Use Multi-Factor Authentication (MFA)
Always enable MFA when logging into fintech accounts (and, dare we say, any account at all). It’s one of the easiest and most effective ways to block unauthorized access – even if someone has your password.
- Don’t Use Public Wi-Fi Without a VPN
Accessing wallets or exchanges from coffee shops or airports? That’s risky. Encrypt your connection with a secure VPN like Surfshark to reduce the risk of data interception on open networks.
- Store Crypto in Hardware Wallets
Avoid keeping large amounts of crypto on exchanges. Hardware wallets keep your private keys offline and out of reach from online attackers.
- Train Employees and Users
For fintech companies, employee mistakes are often the root of data breaches. Regular training helps your team spot phishing attempts, avoid social engineering, and protect user data.
- Perform Routine Security Audits
Audit your systems for weaknesses. Patch outdated software and monitor APIs closely – especially if you’re integrating with third-party platforms.
Watch Out for These Red Flags
If you’re a fintech user or investor, watch out for signs of suspicious activity:
- Emails or texts pushing high-return crypto “opportunities”,
- Unknown logins or password reset requests,
- Apps that ask for unusual permissions or seem poorly designed,
- Payment requests from unfamiliar wallet addresses.
These can signal scams or hacked accounts. Don’t ignore them – and if anything seems too good to be true, it most likely is.
Final Thoughts
Fintech innovation isn’t slowing down – but neither are cyber threats. As more people trade crypto, invest online, and store financial data in the cloud, security must come first.
By using basic tools like MFA, VPNs, and hardware wallets – and staying alert and up to date with scam tactics – we can reduce the risk. The technology is powerful, but it’s only as secure as the people using it.
