![]() It’s a fintech company’s obligation to follow Know Your Customer (KYC) as well as local regulations for any region in which customers are located. Breaches may also have legal consequences in the form of fines and lawsuits. Loss of customer trust and reputational damage may be the most costly aspect of a breach, especially for fintech startups or companies that are experiencing hypergrowth. Since fintech companies deal with the same type of data as banks, a breach can have a similar negative impact. A single breach could also drive thousands of customers away. Cost of breachesįor traditional banks, the cost of a breach includes both direct costs and indirect costs like reputation damage and fines. There’s a tradeoff, however, as storing large volumes of data makes them a more valuable target. Given the value of this data, particularly for mining using AI/ML projects, Fintech companies have an incentive to store as much specific and useful data as possible. This sensitive data includes account information, account balances, information about cash flows, budgets, and contact information. ![]() Since fintech companies handle the same types of financial data as banks, they are an attractive target for attackers. Financial technology (fintech) companies however, are not as strictly regulated as banks, and they often skip key steps in the security process, especially when there is no clear requirement to fully secure applications.īut fintech companies should consider cybersecurity their top priority for a few reasons: Types of data stored ![]() For this reason, traditional banks are governed by strict cybersecurity regulations. ![]() Why is cybersecurity important for fintech companies?įinancial transactions are a natural target for hackers looking for an easy payday. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |