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How to Prevent Security Issues in Fintech with Reliable Technology

Any big online project is potentially interesting to cybercriminals, but information security is especially important for FinTech. Accounts in payment systems and banking systems are hacked in the first place.

No matter what stage your FinTech project is at, it is always useful to ensure the proper level of security for clients and the business as a whole. In this article, we’ll take a look at the key cybersecurity threats menacing financial sector companies and tell you how you can minimize those risks.

The main threats to the fintech project

Here are the main risks to the protection of personal data in the information systems of Fintech companies:

  • SQL injection. This is a technique for injecting modified SQL queries that exploit vulnerabilities in the software implementation of the system and allows hackers to execute an arbitrary query to the database.
  • Man-in-the-middle attacks. When participants exchange messages in an unprotected communication channel it is possible to get an unauthorized connection to it and forge or spoof the messages. 
  • Day 0 vulnerabilities. Any previously unknown vulnerability that hackers exploit before a software vendor fixes a bug is potentially dangerous. 
  • Phishing. Phishing is the theft of user information using fake websites and web applications that imitate legitimate resources. The victim is lured to them by fraudulent means (most often through links in letters and messages), where they personally enter authentication data into a phishing form that looks identical to the real one.

How to protect FinTech projects

Using certain technologies can help you to reduce the risks and make your FinTech product more secure. 

1. Functional programming

Haskell and other functional programming languages were designed with the regard to stability and security. The characteristics of Haskell such as purity, strict type system, abstraction, and more make it a great language for writing backend for any FinTech product. The properties of the language provide for creating more resilient systems and allow you to spend much less time and money on troubleshooting. Check this post to find out about the strong sides of functional programming. 

2. Web Application Firewall (WAF)

Most fintech projects provide their services through web applications, which are subject to a number of risks. To protect against a variety of threats including brute force, session ID spoofing, etc. Web Application Firewall is used. This firewall is specially designed to ensure the security of web applications.

WAF controls server-client interaction during HTTP packet processing. At the same time, it relies on certain rules to identify the fact of unauthorized entry, and, if necessary, blocks suspicious activity.

3. Hardware Security Module (HSM)

The main function of HSM is to perform a variety of cryptographic operations and store digital keys. Using this device will reduce the risk of an unauthorized data modification to zero. This will help protect data from intruders who have broken through the security perimeter and unscrupulous employees. Without an HSM, information security and the protection of user information can be compromised.

4. HTTPS for secure connection

This protocol is an extended version of the HTTP protocol, and not a separate protocol, as some people think. It differs from the “progenitor” in that it supports encrypted data transmission through transport mechanisms TLS and SSL. This connection method provides protection against man-in-the-middle threats, and when used correctly, significantly increases the security of information transfer.

5. Multi-factor Authentication

Login and password can be intercepted, therefore, these authentication means alone are not enough to reliably confirm the user’s legitimacy, two-step authentication is required. It is much more difficult for attackers to get hold of two (or more) authentication factors than just one. In addition, some of these factors are completely unique, inherent only to this user, for example, if we are talking about biometric methods of protecting information like a fingerprint, heart rate, or Face ID. 

Conclusion

Powerful means of protecting information from unauthorized access are necessary for any resource on the Internet, and for fintech projects in particular. The level of effectiveness of security measures directly affects not only the reputation in the eyes of customers but often the very existence of the company. So choose the right tools or request an independent audit for your software to guarantee the safety of your business.