Fintech apps have gained momentum as Paypal, Mint, Gpay and Stash have transformed the way payment is made in financial service industries in the last few years. Fintech platforms are mostly subject to varying security standards striving the threat landscapes across different regions of geography.

In this blog we will discover how Fintech’s are growing at a pace and scaling up along with rising user base making it difficult for security teams to detect at the same pace and understand the attack surface vastness. As Fintech companies grow at pace, its impossible to keep growing with smaller infrastructure and security practices that may not be sufficient for smaller operations. Also growth in user base, makes it difficult with security teams to have proper visibility over an ever-expanding attack surface. 

IntruceptLabs has a team of certified security experts who conduct manual penetration testing, identifying different business-centric vulnerabilities that an automated scan may not identify. GaarudNode from Intrucept provides a comprehensive security framework that ensures your applications are built, tested, and deployed with confidence.

The global aspect of operation in Fintech based organizations gives rise to data sovereignty issues, where some data must be within specific geographic limits. 

The Fintech Service (FaaS) market from past few yrs is experiencing substantial growth and the global market is projected to increase by USD 806.9 billion by 2029. This growth is fueled by increasing demand for digital financial solutions and the adoption of FaaS among businesses of all sizes.FaaS provides agility, flexibility, and seamless integration, making it attractive for businesses. 

Fintech’s mining Ground for cybercriminals

Apart from consumers and legitimate users across the globe, for cyber criminals Fintech’s are mining treasures as they can quiet probably gather or steal valuable personal and financial data.

Money is constantly flowing through various associated apps and we don’t know when and how bad actors will launch clever tactics and spill of money through various associated apps .This is making cyber security posture for fintech’s difficult.

Yes, Organizations can take up cyber skilling and training seriously and help staff to use phishing-resistant multifactor authentication and robust identity-verification measures. Organisation can take up security strategies and devise it keeping uniformity in enforcement practices and incident reporting requirements.

The past decade gave a consistent rise in the number and sophistication of cyberattacks targeting financial institutions as observed.

Now that is posing significant threats to the stability and trust within the financial ecosystem as financial losses increase due to cyber breaches or data hack and causing operational disruptions including reputational damage.

Navigating the risk & challenges affecting Fintech service (FaaS)

Fintech security is directly related to API security as API’s are responsible for smooth functioning of ‘Fintech as a platform’.

It is the same API’s that are prime target of cyber criminals as there has been increase in Cloud computing, mobile apps usage and Internet of Things (IoT) all have accelerated the adoption of APIs. 

API’s are used by developers to integrate third party services ,also increase the functionable features and create solutions that are innovative in nature. Any flaw in API security could substantially damage the endpoints and is a common vulnerabilities. API ‘s can become insecure when endpoints finds failure to validate input, leading to injection attacks.

User identity Theft

Authentication vulnerabilities are issues that affect authentication processes and make websites and applications susceptible to security attacks in which an attacker can masquerade as a legitimate user.

Any flaw in authentication and authorization will give way to account compromises with insecure password that are crackable or single-factor authentication in systems lacking additional verification step. Authentication is a vital part of any website or application since it is simply the process of recognizing user identities.

Having authentication vulnerabilities have serious repercussions — whether it’s because of weak passwords or poor authentication design and implementation.

Threat actors use these vulnerabilities to get access into systems and user accounts to:

• Steal sensitive information
• Masquerade as a legitimate user
• Gain control of the application
• Destroy the system completely

Supply chain risk or third party integration

Often fintech applications interact with external services or providers. Any weaknesses arising in Supply chain from backdoors are embedded within financial apps via compromised third-party code. So many Vendor fail the risk assessments as they are unable to identify risks well before integration. 

Mostly fintech functions are mobile transfers require Apps interacting with traditional banks having legacy infrastructure to support. Integrating the modern high-tech apps with the legacy systems often used by established financial institutions is a difficult technical challenge. 

Regulatory Compliance

Fintech firms operate under regulatory landscape that is complex and changing and must comply with various frameworks, including GDPR,PCI etc, and few local financial regulations based on geographical points or country wise .

These regulations add up to lot of over head expenses and if something overlaps

The regulations adds massive, unnecessary overhead, as requirements often overlaps creating chaos. Complying with local regulations, requires resources that can be diverted away from other security efforts.

Moreover, if a Fintech platform ventures into multiple markets, it must comply with local regulations, which often requires a race against time and diverts resources away from other security efforts.

Enterprise security can prevent cyber attacks by enforcing account lockouts, rate limiting, IP-based monitoring, application firewalls, and CAPTCHAs.

AI Soft Spot by Cyber criminals

Now cyber criminals are using AI and machine learning to automate the testing process and find zero-day vulnerabilities—especially in APIs. Perhaps the most observed impact AI has had on cybercrime has been an increase in scams, particularly those leveraging deepfake technology. In certain dark web forums where experimentation takes place, few threat actors are claiming to employ AI to bypass facial recognition technology, create deepfake videos and adopt techniques to summaries large amount of data.

Cyber security best practices for Faas

The outputs derived from assessment of security testing must encompass the entire attack surface, including APIs, mobile applications and other interfaces to develop roadmaps to improve security. In any event of security breach any incident response planning by organizations will help to identify, mitigate threat and recover. 

GaarudNode from IntruceptLabs

GaarudNode is an all-in-one  solution designed to empower development teams with the tools they need to secure their applications throughout the development lifecycle. By combining the power of SAST, DAST, SCA, API security, and CSPM, GaarudNode provides a comprehensive security framework that ensures your applications are built, tested, and deployed with confidence.

The dashboard presents findings with ratings and remediation steps, allowing developers to easily address critical issues.

What else you get from GaarudNode?

• Identifies security flaws early in the development process by scanning source code, helping developers detect issues like insecure coding practices or logic errors.
• Tests running applications in real-time to identify vulnerabilities such as SQL injection, Cross-Site Scripting (XSS), and other runtime threats.
• Detects vulnerabilities in third-party libraries and open-source components, ensuring that your dependencies don’t introduce risks.
• Continuously tests and monitors your APIs for vulnerabilities such as authentication flaws, data exposure, and insecure endpoints.

Sources: https:www.apisec.ai