10 Tips for Protecting Your FinTech Data Assets

Estimated read time 7 min read

Nowadays, the Financial Technology or Fintech Industry is coordinating and ruling the digital space. Starting from mobile wallet applications to online banking, the digital space is being transformed in a broader way. It’s a boon to the consumers on one hand while an undeniable curse on the other. Amidst this environment of fast and secured transactions, it’s crucial to protect the Fintech Data properties.

For this, I have highlighted some tips and tricks for protecting your FinTech Data Assets. Take a look below:

10 Tips For Securing Your FinTech Data Assets

The latest Fintech Innovation is quite a disruptive one, especially in the cryptocurrency market. It’s gaining popularity among consumers, governmental bodies, and businesses. Larger corporations are interested in the technology behind  Cryptocurrency called Blockchain.

While cryptocurrency’s future is quite ambiguous, its historical performance indicates brighter profitability. While there are better profitability opportunities, the currency is attracting cybercriminals’ attention. It’s mainly because of the presence of a wide range of security flaws in the market:

1. Do Not Ever Provide Your Private Information In The Public Forums

Cyberthieves use a very common method to steal your private information – Phone Porting. Hackers try to sneak into social media platforms to gather the sensitive information of the investors. For example, email address, phone number, password, account number, etc. For this reason, do not ever provide your personal fintech information on social media channels.

2. Adopt Security Standards For Preventing Hackers

One best idea is to disable SMS Accounts as an additional defense against phone porting attacks. In addition, enabling two-factor authentication and using a coin vault to send off the exchange funds is also recommended. When it comes to online platforms or the public, try not to discuss cryptocurrencies. Implementing all the robust security options with the cellphone service provider can save your crypto data assets.

3. Do Not Put All Of Your Crypto Eggs In A Single Basket

FinTech Assets can be protected at their best if you diversify your online financial holdings among multiple exchanges to prevent cyberattacks. As per the opinions of security experts, investors should always store their cryptocurrency offline, i.e., in a cold wallet. This restricts the access that hackers get to the investor’s currency.

4. Do Currency Exchange With Caution

Just like the stock market or share market, the Crypto market is embedded with a range of risk factors. Crypto investors use centralized exchanges only at the time of frequent transactions.

While trading tokens on Ethereum, you should stick to the decentralized exchanges. These types of exchanges do not hold users’ cryptocurrency. Until and unless a hacker becomes able to get a user’s private key, the investors’ funds will remain inaccessible. This is what doing currency exchange with caution refers to.  

5. Do Not Ever Forget From Where You Started

Investors generally get stuck in the trap of hackers since they fail to adhere to security measures. For example, crypto investors must set up a separate account for every exchange. In this way, even if the hacker gets to access the account, they won’t be able to invade the sensitive information. Additionally, investors must use strong passwords for their accounts which will make it difficult for anybody to decrypt.

6. Do A Secured Authentication

Authentication is the procedure of how a user is provided and identified access to data concerning his role. There are several types of data authentication such as password authentication, biometric authentication, OTP, email authentication, and many more. Following are the authentication methods you can employ:

  • Role-based access control
  • Password expiration and multifactor authentication
  • Track all the failed sign-in attempts

7. Tokenization

In the tokenization method, the sensitive Fintech asset data you would like to protect can be secured by transforming them into strings of tokens or symbols.  Token Vault is that special database that stores all connections between the token generated and the original data. Although the original data is referenced by these tokens, they cannot be used for decrypting original data. As a result, you need to possess access to the vault since, without these, the tokens are useless.

8. Obfuscated Code

Obfuscating code is a practice to block an attacker from restructuring the actual software program from scratch. Code obfuscation includes encryption of some or all the codes, thereby unwrapping the potentially revealing metadata. The useful classes will be renamed along with the variable names to meaningless labels.

The biggest advantage of this procedure is that it doesn’t allow to duplicate or deciphering a designed software code. Thus, if anybody is attempting to steal the code, the first barrier they will come across is the obfuscated code. In this way, your FinTech data assets will remain secure.

9. Secured Data Collaboration

There is no doubt that secure data collaboration has a higher potential to disrupt and defeat the finance ecosystem. In addition, a number of verticals can benefit from collaboration with several external data in a decentralized manner. Therefore, to enhance the capabilities and capture the assets, secure data collaboration with external sources.

All you have to do is analyze and identify the existing expansionary areas and assess the previous legal concerns. Furthermore, look for opportunities to enrich the remaining data assets with 3rd party sources through collaboration.

10. Protect your SIM Card

Banking is just a matter of a single snap. All thanks go to smartphones but safeguarding the smartphone is more important. If you lose the network all of a sudden and without a reason, consider it a warning sign. The best ways to protect a SIM Card are limiting the data being shared, ignoring any foreign link, and using a SIM Card lock.

What’s The Role Of Encryption In The FinTech Industry?

The word Encryption has a special meaning in the information security sector. And also in the cryptocurrency industry. Day by day, as businesses are embracing the latest technologies, the need for protecting financial assets is also intensifying.

Safeguarding financial assets is a popular method where the technique of data encryption is used.

Now, what’s this?

When it comes to encrypting data, the assets are encoded using complex mathematical algorithms. This can only be accessed using the accurate decryption key. Even if your data gets stolen or lost, hackers will not be able to access it. One of the most popular data encryption methods common in the Fintech Industry is Triple Data Encryption Standard (TripleDES).

Bonus Section: With the increase in the popularity of cryptocurrency, the frequency of cyber thieves is rising in leaps and bounds. Hackers in the cryptocurrency market are gaining power through ruthless exploitation. In order to ensure the utmost safety, there is a strong requirement for qualified crypto security specialists so that unauthorized access to accounts can be protected.

The Final Thoughts

Day by day, disruptive technologies are infiltrating the Fintech industry ruthlessly. They are on the verge of transforming the financial ecosystem and optimizing the customer experience. As a result, there are a lot of scopes here for both cybercriminals and startups. With the above-suggested tips, I hope it would be a lot easier to secure financial data assets. If required, you can also consult a financial development company to get the finest level of security for all sensitive data.

What’s your viewpoint on this? Do let us know in the comment section below; we are listening.

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