By Sapna Sumbly
Amid the financial landscape, fintech companies emerge as the agile, high-performance counterpart to traditional banking, financial services, and insurance (BFSI) organizations, akin to a race car compared to a standard family car. And much like the surging popularity of motor racing, the fintech industry is experiencing rapid growth, with an anticipated expansion from RM187.51 billion in 2023 to RM386.4 billion by 2028.
However, this growth unveils a pressing dilemma — an expanded attack surface and vulnerability to cyber threats. This susceptibility stems from widespread application programming interface (API) integrations, adoption of cutting-edge technologies, and user-centric interfaces — distinct traits setting them apart from the more conservative BFSI systems. This blend, fueled by cloud-based scalability, increasingly jeopardizes fintech companies.
Moreover, as fintech firms grapple with a scarcity of cyber talent and competition from neighboring fintech hubs like Singapore and Indonesia, along with the imperative need for regulatory streamlining and coordination, the pivotal question arises: “How can they strengthen their defenses against cyber threats amidst an expanded attack surface?”
The Challenges of an Expanded Surface
Fintech companies’ growth relies on integrating multifaceted APIs and deploying multiple cloud tools and technologies. While this helps foster a rich ecosystem of interconnected services like mobile transfers, e-payments, peer-to-peer lending, and cryptocurrency trading, it also introduces several potential threat actors to watch out for:
- Cyberthreats: Numerous access points across the companies’ infrastructure widen the potential attack surface, risking the overall security posture and attracting cyber criminals. This concern is further amplified as Asia was one of the most targeted regions for ransomware last year, with the financial industry ranking among the top targeted sectors. The increasing reliance on digital advancements in Malaysia further elevates its risk of ransomware attacks, occurring nearly every other day.
- Ransomware-as-a-Service (RaaS): Aside from persistent threats like data breaches, malware, and phishing, fintech companies must also be wary of RaaS. This model enables malicious actors to easily subscribe to ransomware packages, launching targeted attacks like those by the notorious LockBit group, which accounted for about 25% of global ransomware leaks in 2023.
- Artificial Intelligence (AI): AI is not generating new attacks but rather scaling existing ones, making them more effective and lethal. Of the many AI tools available, generative AI will likely stand out as a potent tool for attackers, enabling impersonation and identity theft tactics. Hence, attention must also be directed towards protecting key sectors like finance and insurance.
These diverse threats and the expanded attack surface, along with widespread cloud deployments, necessitate comprehensive visibility for impeding data breaches and effectively managing the array of cybersecurity risks.
Adopting a Holistic Cybersecurity Solution
Although innovation drives fintech companies, trust forms the bedrock of their success. Here, a unified cybersecurity solution like Attack Surface Risk Management (ASRM) and Extended Detection and Response (XDR) plays a crucial role in cultivating and navigating trust. Hence, adopting a platform-based approach emerges as an ideal solution.
ASRM functions as a race engineer, providing a comprehensive view of the ‘track’ — the attack surface from multifaceted technologies and cloud integrations. It meticulously maps and identifies potential vulnerabilities across the fintech ecosystem and proactively identifies weak spots and security gaps. With the integration of a zero-trust strategy, ASRM significantly reduces the attack surface by guarding against insider threats while ensuring compliance and robust data protection.
Complementing ASRM, the XDR serves as the vigilant lookout as it consolidates various security tools, correlating insights from multiple sources to detect and respond to sophisticated attacks swiftly. Its cross-domain visibility allows the detection of atypical behaviors, such as unusual access patterns, unexpected downloads of sensitive information, patterns indicative of phishing campaigns, or social engineering attacks, and more.
- Liberating resources otherwise spent on managing disparate systems.
- Increasing operational scalability, allowing enterprises to redirect focus and investments towards growth initiatives.
- Centralizing security protocols and regulatory adherence by identification of non-compliance issues and immediate remediation.
- Minimizing the occurrence of human errors.
This will in turn, instill confidence among stakeholders and enhance the reputation and position of fintech companies in the eyes of potential investors.
Fortifying the Future through a Platform-based Approach
In the ever-evolving landscape of cyberattacks, a platform-based approach emerges as the cornerstone for fortifying the future of fintech companies. Just as motor racing teams meticulously optimize every aspect of their cars, these platforms streamline security measures, ensuring adaptability and paving the path to sustainable growth.
The author is Director for BFSI Business, SEA, Trend Micro
