fintech security

What challenges does the fintech Security sector face?

Estimated read time: 5 minutes

In this article, we will discuss the major fintech security challenges that fintech companies face today.

Top fintech cybersecurity challenges

Some prominent fintech security concerns include the following:

Cloud Computing

Cloud-based solutions are now a prominent part of software products. Cloud computing provides easy integration to multiple third-party features like payment gateways, digital wallets, bank account management, etc.

Cloud computing also ensures the easy scalability of services. As cloud service providers manage resources and networking for their customers, more businesses are opting for cloud computing practices in their businesses. 

A huge cloud computing market also means a large number of users sharing cloud resources making them vulnerable to malicious data traffic from cybercriminals and hackers.

Therefore, it is quite important for fintech companies to invest in a credible cloud computing host platform. 

A private cloud, for example, ensures that your cloud resources such as servers, database files, etc. are protected from unauthorized access.

Moreover, networks are secured from intrusions, data spoofing, etc. to a great extent as there is no other user sharing them.


Get a complimentary discovery call and a free ballpark estimate for your project

Trusted by 100x of startups and companies like


Malware is a cyberattack that performs unauthorized functions on the victim’s computing system. Cybercriminals transfer malware through emails, pop-up notifications, third-party websites, etc.

Malware is a generalized term for various types of cyberattacks like viruses, spyware, bots, ransomware, etc.

For fintech applications, the target of malware software is to steal users’ confidential data including bank account information, users’ passwords, etc. The nature of such malware attacks is very dangerous as they can swiftly replicate compromising the financial network in no time.

A recent example of such malware attack on the fintech sector is multiple malware attacks on the SWIFT network. SWIFT is an inter-bank messaging protocol that is largely used by banking institutions worldwide. 

A real-time malware detection feature can help you secure your fintech application from malware threats effectively.

Also, rigorous testing procedures ensure timely detection and prevention of cyberattacks. Regular vulnerability assessment and penetration testing (VAPT) is one such testing method of timely finding vulnerabilities in fintech service applications.

Data Breaches

Fintech applications require users to enter their personal information for seamless access to financial services. Such sensitive information make fintech applications the prime target of cybercriminals.

If cybercriminals are able to breach a software application, they can easily penetrate the whole network of a fintech company. 

You as a CTO or CEO must prioritize regular penetration testing of your fintech products including mobile applications and websites.

Hire expert developers for your next project

62 Expert dev teams,
1,200 top developers
350+ Businesses trusted
us since 2016

Digital Identities

One major fintech security challenge is protecting users from digital identity theft. Mobile applications allow fintech companies to offer a seamless experience of multiple financial operations such as wealth management, online payments, etc in one place. 

Advanced digital identification methods such as biometrics sensors, OTP (one-time password generation), code-generating apps, etc. have improved fintech apps security to a great extent as compared to the traditional methods of passwords and PINs.

However, given the advancements in software technology, these security techniques are not considered much safer now as they are somewhat replicable. 

To avoid the risk of identity theft and replication, fintech companies should invest in measures like adaptive authentication, also called risk-based authentication. These security techniques analyze user behavior before granting access.

Digital Currency

Digital currencies such as cryptocurrency have gained a lot of popularity. However, cryptocurrency has emerged as a major fintech security risk.

As there is no record of the origins of the cryptocurrency, it can be used for money laundering. Cybercriminals can also use crypto entry points as a source of stealing data. 

Therefore, fintech companies should be very vigilant about using digital currency networks. Always invest in a secure and reliable blockchain trading platform and globally recognized cryptocurrencies.

Strict Fintech Security Compliance

The fintech industry has strict compliance regulations to follow. Failure to comply with these laws results in huge monetary fines, etc. You can secure your fintech products from all major cybersecurity threats by following complaint standards like GDPR, PCI DSS, PSD 2, etc.

You will have to meet these regulations depending upon the fintech service you are offering such as a banking institution, electronic money institution, payment institution, etc.

Hire expert developers for your next project

Trusted by

Planning to Invest in Fintech Security?

The worth of the cybersecurity market is expected to reach $345.5 billion by 2026. The fintech sector is the major contributor to this growth. As a fintech business CEO or CTO, today is the right time to engage in fintech security practices.

Read more on cybersecurity in fintech in our blog here.

To effectively implement your fintech cybersecurity plans, it is necessary that you partner with the right cybersecurity professionals.

DevTeam.Space can help you here. We have a competent team of security engineers that can help you ensure your fintech product’s safety.

You can easily reach out to us via this quick form and one of our technical managers will get back to you for discussing further details.

Top FAQs on Fintech Security Challenges

1. What are some major fintech cybersecurity challenges?

Some prominent cybersecurity challenges faced by financial technology and financial institutions include overcoming cloud computing security, maintaining data security, protecting fintech applications from malware, data breaches, identity theft, financial fraud detection, etc.

2. How to overcome cyber security flaws in the financial services industry?

Effective fintech security solutions include adopting a security-first software development life cycle approach, partnering with a professional security testing team to implement security protocols effectively, adding security features to your information security management system like multi-factor authentication, biometric verification, etc., strictly complying with the industry’s general data protection regulation standards, etc.

3. Why is fintech technology vulnerable to cyberattacks?

Fintech firms often need access to users’ sensitive data including bank accounts details, biometric information, etc. Such critical data makes fintech applications vulnerable to cyber threats such as data phishing, spoofing, viruses, etc.


Alexey Semeney

Founder of DevTeam.Space

gsma fi band

Hire Alexey and His Team To Build a Great Product

Alexey is the founder of DevTeam.Space. He is award nominee among TOP 26 mentors of FI's 'Global Startup Mentor Awards'.

Alexey is Expert Startup Review Panel member and advices the oldest angel investment group in Silicon Valley on products investment deals.

Hire Expert Developers

Some of our projects

NewWave AI



United States

All backend All frontend Design WordPress

A website to publish AI research papers with members-only access and a newsletter.




FL, United States

Android iOS Java Mobile PHP Web Website

A complete rebuild and further extension of our client's web and mobile shipping system to allow it to serve 28 countries.

Keep It Simple Storage


Public Storage

United States

All backend Devops IoT Mobile Web

A B2B2C solution with Web, Mobile, and IoT-connected applications that aim to revolutionize the public storage industry.


Read about DevTeam.Space:


New Internet Unicorns Will Be Built Remotely


DevTeam.Space’s goal is to be the most well-organized solution for outsourcing


The Tricks To Hiring and Managing a Virtual Work Force

Business Insider

DevTeam.Space Explains How to Structure Remote Team Management

With love from Florida 🌴

Tell Us About Your Challenge & Get a Free Strategy Session

Hire Expert Developers
Hire expert developers with DevTeam.Space to build and scale your software products

Hundreds of startups and companies like Samsung, Airbus, NEC, and Disney rely on us to build great software products. We can help you, too — 99% project success rate since 2016.