Title: Cybersecurity Challenges in Fintech: A Comprehensive Overview and Risk Analysis
Authors: Micah Oghale Joel, Ubamadu Bright Chibunna, Andrew Ifesinachi Daraojimba
Volume: 9
Issue: 3
Pages: 9-18
Publication Date: 2025/03/28
Abstract:
The rise of financial technology (Fintech) has revolutionized the financial landscape, offering innovative services and products to consumers and businesses alike. However, this digital transformation has brought about a myriad of cybersecurity challenges that warrant careful examination. This review presents a comprehensive overview and risk analysis of cybersecurity challenges in the Fintech sector. Fintech companies operate within a highly dynamic and interconnected ecosystem, leveraging cutting-edge technologies such as artificial intelligence, blockchain, and cloud computing to deliver financial services efficiently. While these advancements offer unprecedented opportunities, they also introduce new vulnerabilities and threat vectors. Cyberattacks targeting Fintech organizations can result in financial fraud, data breaches, identity theft, and systemic disruptions, posing significant risks to both the industry and its stakeholders. This review identifies key cybersecurity challenges faced by Fintech firms, including data privacy concerns, regulatory compliance, third-party risks, insider threats, and the evolving threat landscape characterized by sophisticated cybercriminal activities. Moreover, it examines the implications of emerging technologies on Fintech cybersecurity, exploring the security implications of trends such as open banking, decentralized finance (DeFi), and quantum computing. Effective risk management strategies are essential to mitigate these cybersecurity threats and safeguard the integrity and trust of Fintech services. This review discusses various risk mitigation approaches, including robust cybersecurity frameworks, threat intelligence sharing initiatives, secure software development practices, and continuous security monitoring. Additionally, it underscores the importance of collaboration among industry stakeholders, regulatory bodies, and cybersecurity experts in addressing the evolving challenges posed by cyber threats in the Fintech sector. In conclusion, this review highlights the critical importance of proactive cybersecurity measures in safeguarding Fintech ecosystems against evolving threats, ensuring resilience, trust, and sustainability in the digital financial landscape.