Web and app security for FinTechs

Web- und App-Sicherheit für FinTechs

As studies show, startups in the financial sector as well as traditional banks, have homework to do in regard to IT security of their websites and apps. Due to ever increasing cybersecurity threats, companies in the financial sector are faced with the major task of ensuring the functionality of their own systems as well as the security of customer data. What do modern and intelligent cybersecurity solutions for banks and FinTechs look like? 

Over and over again, studies point out the cybersecurity weaknesses of the major FinTechs. These are often old software versions on forgotten subdomains or neglected APIs. As a result, most FinTechs do not meet the requirements for state-of-the-art encryption, security, and data protection. Nevertheless, FinTechs usually do better than traditional banks when it comes to securing their web presences.

Although the financial sector is addressed specifically in this article, it goes without saying that companies in all sectors must protect themselves against cyber-attacks. In the first half of 2021, numerous international corporations, ranging from the food to energy industries, have already been the target of professional cyberattacks.

FinTechs' security situation

Security experts and analysts of ImmuniWeb, a company specializing in web security, have taken a closer look at the security systems of the top-100 largest companies in the FinTech sector. All the tests carried out were based exclusively on information that can be obtained via the public Internet. The company did not penetrate any computer systems or networks of the companies under review.

The investigation included the websites of the FinTech companies, including all subdomains and identifiable API endpoints, as well as their apps. The security of the software currently in use, the configuration of SSL encryption, and the possibility of phishing attacks against the operators of the websites and apps were tested. In addition, compliance with the EU GDPR and the PCI DSS credit card data processing standard was reviewed.

Among the most common vulnerabilities encountered are the following:

  • Various variations of cross-site scripting (XSS)
  • Incidental data leaks
  • Incorrectly configured security settings

 

Another problem that could be identified: half of all server backend systems, which are supposed to communicate exclusively with mobile apps, also disclose parts of their data to third parties. This can not only result in data protection issues but also in dangerous security gaps that may be exploited by cyberattacks.

Positive: FinTechs are ahead of traditional banks. Overall, the 100 startups tested perform better in almost everywhere aspect than the top-100 credit institutions on S&P Global’s list of largest banks.

In summary, it is important for the entire financial sector and beyond to keep IT security standards high in order to protect themselves against the growing occurrences of cyber-attacks.

Are you interested in more detailed information on web and app development regarding cyber security? Feel free to read our German article on this or get in touch with us!

Read the latest stories.

Never miss an update from us. 
Follow us on LinkedIn or subscribe.

Explore More

Different Types of Blockchain

The 4 Blockchain Types Explained

Several different types of blockchain exist, each of which has advantages and disadvantages. It is essential to know the different types of Blockchain in order to build the optimal network. Depending on the requirements of the Blockchain, one has to decide between public, private, consortium or hybrid network. We will explain what this means in our blog post.

Read More »
Impostor Syndrome

7 Tips to Overcome Impostor Syndrome

People who are affected by impostor syndrome believe that they are impostors themselves. They think that they do not deserve their success and suffer from self-doubt.
In this article, we clarify what impostor syndrome exactly is, what its characteristics and causes are , and what tips and tricks exist to overcome it.

Read More »
How to prepare for a technical interview as a Freelancer

How to Best Prepare for a Technical Interview as a Freelancer

As a freelancer, there are many things to consider when it comes to a technical interview. How can I best prepare myself? What are things the client wants to know? How do I behave?
Read in this article how a technical interview for IT-Freelancer is structured, how do you best prepare for it and what do you need to consider during the interview?

Read More »
Blockchain Beginners Guide

Beginner’s Guide: A Simple Introduction to Blockchain

Hardly anyone has gotten around the topic of blockchain in recent months and years. No matter whether it is the Blockchain itself or related topics such as Bitcoin or Smart Contracts.

But what is blockchain actually?

In this article, we will give you a simple overview of the technology, how it works, what possible areas of applications are and what advantages and disadvantages the blockchain brings contains.

Read More »

Join The ElevateX Community
For Free.