On April 17, 2022, US-based finance platform Beanstalk Farms lost $180 million in a cryptocurrency heist. A few days later, CashMama, an Indian Fintech enterprise, reported a large-scale data breach where customers’ financial data was stolen.
These two isolated incidents exemplify the grave danger fintech companies face in today’s cybersecurity threat landscape. Financial data has always been highly vulnerable to breaches due to its lucrative value in the black market. The decentralized and largely unregulated fintech space delivers a larger attack surface to cyber criminals.
Fintech enterprises need effective cybersecurity through managed security services (MSS) to combat the rising tide of cyberattacks. This blog takes a look at the various ways new-age fintech companies can benefit from managed security services.
Cybersecurity Challenges Faced By Fintech Industry
Fintech startups take pride in being industry disruptors. But many have themselves been disrupted by cyberattacks. The fundamental reason why fintech organizations lack cybersecurity capabilities is that they don’t prioritize cybersecurity. Startup founders focus on building the product and creating a space for themselves in the market. It makes sense. After all, what’s there to secure without a viable business? But completely ignoring cybersecurity is not a smart business move either.
Fintech companies are a big prize for malicious actors. Apart from the ransom-worthy customer financial data at stake, fintech companies can give attackers direct access to their customers. Attackers have realized that users of app-based fintech products are a much more profitable target. Rather than targeting just the company, attackers now target the app and the end-users themselves.
One such advanced attack tactic is the SOVA malware. The android banking Trojan surfaced in 2021, and multiple versions exist today. It can infect over 200 apps, scrape credential data, capture screenshots, and record device screens.
Fintech startups face similar next-generation threats they are unprepared against. A managed security service provider is precisely what they need to mitigate cybersecurity challenges and build trust with customers.
5 Benefits of Managed Security Services for Fintech Companies:
A managed security service provider brings advanced security capabilities to the table. There are multiple ways in which Fintech startups benefit from managed security services. Let’s take a look at a few:
1. Enhance Data Security
Data breaches, unauthorized access, and theft are a fintech startup’s greatest security challenges. Managed security services have multiple strategies that protect your organization from malware, ransomware, intrusions, and data loss. A data loss prevention (DLP) strategy, combined with round-the-clock monitoring, robust firewalls, and constant data backups, provides powerful data protection. Managed security services also help fintech companies create strong access control policies which ensure sensitive data is only accessed by authorized personnel.
Data security is not a one-step program. A managed security service provider creates a multi-layered security environment that protects confidential data from various vulnerabilities.
2. Threat Response & Remediation
“Cyberattacks won’t happen to us” is a perilous assumption. No organization in the world is safe from cyber criminals, so why will your fintech be any different?
Assuming that cyberattacks are imminent, managed security services help create efficient response strategies that minimize risks and protect you from worst-case scenarios. Managed security service providers are experienced players with their fingers on the pulse of new-age cyber-attack tactics.
MSSPs like ACE Managed Services use the MITRE ATT&CK framework to stay ahead of cyber adversary behavior and common attack tactics. Access to similar knowledge bases and threat feeds ensures that managed security providers respond to deadly attacks in a cutting-edge manner and the aftermath is minimal damage.
3. Optimize Security Posture
Managed security service providers strengthen your security posture by covering all network holes. They conduct regular vulnerability and risk assessments, ensuring your security environment is updated against the latest and emerging threats. Additionally, they streamline the security process and create customized policies based on your business operations and customer interaction.
Managed security services also instill an environment of security consciousness in the company. Many providers offer supplemental security awareness training for employees.
4. Compliance Management
Compliances are a big part of any business operation that deals with customer data or follows Know Your Customer (KYC) practices. Managed security service providers have solutions with built-in automatic compliance management capabilities. They help you with standard frameworks like EU-based frameworks like GDPR or United States’ PCI DSS. You can rest assured that your data handling complies with local and global regulations. Managed security services also provide audit-ready reports whenever you need them.
Suggested Reading: LAUSD (LA Unified School District) Ransomware Cyberattack 2022
5. Build Customer Trust
Partnering with a managed security service provider establishes goodwill in the industry. Clients, investors, vendors, and end-users are assured that you have a professional on board who takes care of all security needs. Their data, resources, and investment are in safe hands.
Capabilities Offered by Managed Security Services
Managed security services offer a wide range of capabilities for securing your organization from advanced multi-vector threats.
- 24x7x365 security operations center ensures your network never goes unprotected.
- Expert support and a highly skilled team of cybersecurity professionals are readily available.
- They provide turnkey solutions for a customized security environment.
- They offer multiple security solutions under one roof for comprehensive security at various layers.
- They maximize cost efficiency for growing businesses with limited budgets.
- Your security environment is flexible and can be easily scaled as fintech startups grow in size and customer base.
Future Trends Shaping MSS and Fintech
Managed security services and fintech are nascent and still in their growth phase. Both industries are primed to advance further as automation, machine learning, and AI technology develop further.
As fintech companies grow in influence and market share, their risk posture will grow too. Managed security services will be all the more needed at that phase. With market growth, compliance and regulatory oversight will also increase. A managed security provider will ensure fintech enterprises remain firmly entrenched with security and data protection best practices.
ACE Managed Security Services for Fintech
ACE MSS is a full-service security provider with multiple solution offerings in its belt. ACE ensures 24/7 protection with robust monitoring, in-depth analysis, and automated compliance.
ACE Managed Security solutions include:
- Managed SIEM
- Managed EDR (in partnership with CrowdStrike)
- Managed Email Security (in partnership with Proofpoint)
- Managed DNS Filtering
- Vulnerability Assessment
If you want to know how ACE can optimize security for your fintech enterprise, you should talk to a security expert. ACE offers free security consultations worth $500, where our experts assess your current posture and offer remediation solutions.
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