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Cybercrime and Cyber Security in Fintech: A Growing Concern

As the financial technology (Fintech) industry continues to evolve, it has become increasingly clear that cybercrime and cybersecurity are major concerns for businesses and individuals alike. With the rise of digital transactions and online banking, the potential for cyber attacks and data breaches is higher than ever before.

The Growing Concern of Cybercrime

According to a recent report by Europol, the internet organized crime threat assessment (IOCTA) 2021 highlights the growing concern of cybercrime in Fintech. The report states that cybercriminals are increasingly targeting financial institutions, using sophisticated tactics such as phishing and ransomware attacks to steal sensitive information and disrupt operations.

What is Fintech?

According to a report by Kaspersky, Fintech refers to the use of technology to improve and automate financial services, such as online banking, mobile payments, and investment platforms. The report notes that Fintech has the potential to increase financial inclusion, reduce costs, and improve customer experience.

Risks Associated with Fintech

However, Fintech also presents a number of risks, including:

  • Cyber attacks
  • Data breaches
  • Regulatory compliance issues

According to a study by Hughes, the lack of clear regulations and enforcement mechanisms in the US is a major concern for Fintech companies.

Mitigating Risks

To mitigate these risks, financial institutions must prioritize cybersecurity and take steps to protect themselves from cyber threats. This includes:

  • Implementing robust security measures
  • Conducting regular risk assessments
  • Educating employees on cybersecurity best practices

Conclusion

In conclusion, cybercrime and cybersecurity are major concerns for the Fintech industry. As the industry continues to evolve, it is essential that businesses and individuals alike prioritize cybersecurity and take steps to protect themselves from these threats.

Sources

  • Europol (2021) Internet Organised Crime Threat Assessment (IOCTA)
  • Kaspersky (2022) What is Cyber Security?
  • Hughes (2017) Cryptocurrency Regulations and Enforcement in the US
  • Schatz et al. (2017) Security and Law Towards a More Representative Definition of Cyber Security

Author Information

  • Anastasija Despotović, Faculty of Organizational Sciences, University of Belgrade, Belgrade, Serbia
  • Ana Parmaković, Directorate for Telecommunications and Informatics J-6, Center for Command and Information Systems and Information Support, Belgrade, Serbia
  • Marija Miljković, Faculty of Organizational Sciences, University of Belgrade, Belgrade, Serbia