In Q1 of 2022, fintech companies experienced 2.5 times more attacks than in the two previous years. The growing rate of cybercrime has added to the market unrest and questioned fintech preparedness; some claimed that the industry players are more susceptible to virtual threats than traditional banking, with greater resources at their disposal.
Thibaud Catry, Head of Compliance at ConnectPay, said that claims about diminishing fintech security are far-fetched, although he encouraged ramping up defenses due to rising cyber threats.
“In today’s day and age, the size of your business does not determine the capability to fend off fraudsters”, said Catry. “The massive fraud prevention departments that traditional banks have are becoming obsolete, as the ‘strength in numbers’ paradigm has shifted to ‘strength in technology’. Now it’s possible to prevent fraud at the same — or even higher — efficiency with fewer people simply by utilizing the appropriate tools and automation.”
He also noted that, in a way, the long-standing credibility of legacy banks puts them at greater risk. For instance, in phishing assaults, large banks are frequently a better target for fraudsters as they service an incredibly high number of people.
“If a person has an account with a well-known bank and receives a notice, stating that it has been blocked, it is more likely that s/he will click the link. As a result, scammers frequently target people using the most common bank names, exploit brand awareness to reel in unaware clients.”