Importance Of Cyber Security When Building Custom Financial Software Solutions

Cybersecurity has become a top concern for financial services companies. It impacts mobile applications, banking transactions, and KYC. While financial service companies can provide a reasonable level of protection, they may not be able to afford the costs associated with compliance and resilience. This situation isn’t good for consumers, nor is it good for competition.

Cybersecurity is a top concern for financial services companies

As the financial services industry continues to become more digital, cybersecurity is becoming an even more important concern. In addition to data breaches, cyber criminals are also becoming more sophisticated and bold, putting financial institutions at risk of losing customer information. In some cases, attacks are even intentional, with disgruntled employees offering up login credentials to hackers. Other times, the data breach is a product of poor employee morale or an attack resulting from malware downloads.

Thankfully, despite the threat of cyberattacks, there are some steps that companies can take to improve their overall security posture. One of the first steps is to establish a robust cybersecurity program. Financial services firms should incorporate cybersecurity risk management into their overall enterprise risk management program to mitigate any threats.

It affects mobile applications

Cyber security is a major concern for mobile applications and financial software, and developers need to take steps to ensure their code is protected. If not, sensitive information could be leaked or stolen. Hackers will exploit vulnerabilities in the code of an application to gain access to vital information. The resulting data breach can harm companies and customers.

The rise in cyber attacks on financial institutions has led to a critical need for financial institutions to increase the security of their mobile applications. Research has shown that 77% of finance-related mobile apps have vulnerabilities that can lead to data breach. Such leaks can cause financial companies to lose credibility. This is why mobile app developers should take appropriate steps to protect personal data and encrypt their apps to comply with data regulations.

It affects banking sector transactions

As companies move online, the threat of cyber attacks has increased. Fortunately, the Federal Deposit Insurance Corporation (FDIC) protects customer funds from cyber crimes. However, it’s important to remember that even though the FDIC covers your money, you don’t have 100% protection against hackers and other intruders. Cyber attacks are not limited to websites; they can also target mobile apps. To prevent this kind of threat, your banking software solutions should include robust security features.

One of the best ways to ensure the safety of your data is to use strong password management tools. These tools will suggest passwords, analyze them, and detect suspicious activity. These tools can also help prevent password exhaustion. Furthermore, you should use regular backups of your data. You can never be too careful when it comes to cyber security. Ransomware is a big risk for large corporations, too, and stolen data can be used for a variety of fraudulent activities. In addition, many fintech applications have direct access to bank systems, so if your data leaks out, hackers can gain access without suspicion or bypass bank monitoring systems.

It affects KYC

The emergence of cyber criminals has increased threats to the financial industry. While digitization has facilitated growth and improved efficiency, it has also created a new breed of adversaries. Cyber criminals are stealthy and well-equipped to target financial institutions. A business should have comprehensive security measures in place to fend off a cyberattack.

The KYC verification process is a complex process that requires a large technological infrastructure. Traditionally, it is a manual process, requiring human review. However, newer technologies such as AI and machine learning can automate and speed up this process. These systems can also perform real-time document analysis.

Businesses must ensure that they have strict KYC onboarding processes to avoid cyber threats. A robust KYC process should include a risk assessment process that can determine risk. In addition, it should have the ability to trace transactions and identify risk factors for a customer. This can help protect both the bank and the customer.

It affects data protection

Increasingly, companies need to invest in cybersecurity in order to protect their data from hackers and other cybercriminals. The number of data breaches is increasing, and many governments have enacted stricter data privacy laws. In the EU, Australia, and California, for example, consumers have more rights when it comes to the use of their data than before. Additionally, organizations operating in regulated industries are subject to additional standards, such as PCI/DSS for credit card data processing. In addition to data security regulations, advanced persistent threats (APTs) have increased in sophistication, making them especially difficult to defend against.