FinTech companies use technology to improve their financial services and processes. It is one of today’s fastest-growing industries, with its market share expected to double in the coming years.
With a rising market share, the question of FinTech app security looms large.
How important is it to develop a secure fintech app while avoiding data theft and other malware?
Mobile banking, e-commerce transactions, trading, insurance, and cryptocurrencies are all examples of FinTech. While traditional banks and customers happily adapt to evolving technology, the fintech industry has become a prime target for hackers and fraudsters. In fact, 70% of FinTech firms stated that data security is their top priority.
However, this does not imply that developing and maintaining a money transfer software app or any fintech app is a nightmare. By giving some key features that deserved priority, the app can remain safe from wrongdoers and theft.
A Few Tips for FinTech App Development with security
To create a secure application, security must be integrated at all levels of the application’s process. All project team members must ensure the process’s safety.
- Users must be forced to use complex passwords.
- Use complex two-factor authentication.
- Keep track of all the users’ IP addresses, locations, and device information.
- Use alternative authentication methods such as retina scans and facial recognition software.
- Constantly monitor transactions and report suspicious ones.
SECURE KEY
Because sensitive data will be saved on servers and users’ devices, developing a robust algorithm must be a top priority. The code should be flexible and transferable between two devices. The code must be checked for flaws on a regular basis.
The following are a few practices that can be implemented to increase fintech app security:
1. Incorporate input validation
Input validation will prevent attackers from injecting malicious code into your app. This is one of the most important security measures for software developers.
2. Prevent unauthorized access
When creating a secure fintech app, access control must be clearly defined. Failure to complete the step may result in unauthorized data access.
3. Defend against SQL injection
SQL is still useful among hackers and should not be overlooked. The best way to test an application’s vulnerability is to conduct its own attacks on apps and see if they are successful or not.
4. Safeguard sensitive data
The first step is to determine which data is more sensitive and requires additional security. The most common method for reinforcing secure data is to install an SSL certificate on site. Other precautions include using a web application firewall and avoiding data transfer in clear text.
SECURITY OF THE INFRASTRUCTURE
Understanding everything there is to know about FinTech app security begins with ensuring a reliable and secure IT infrastructure to prevent hackers from intercepting the flow and gaining the reputation of a strong developer.
Below are the most successful methods.
1. Routinely maintain operating systems:
The operating systems used by fintech companies, such as Windows, Ubuntu, CentOS, and others, form the foundation of infrastructure security. Users are notified of security updates and flaws by operating systems. This section should be improved by consistently updating all system updates.
2. Only use the server for essentials:
Do not install any unnecessary apps or software on the server. While adding weight to the server, loopholes are also added invisibly, increasing the workload on the security team. Always keep it simple.
3. Monitor third-party components:
Developers must begin managing third-party API as soon as possible. They must be continuously monitored and updated. In the event that any vulnerabilities are discovered, the backup plan should be kept in place.
4. Secure web servers:
Application servers are the most common targets for attackers. All other system files, operating system files, and logs must be kept on a separate drive. A Content Security Policy can be used to prevent attacks such as cross-site scripting and data injection.
5. Employ HTTPS.
HTTPS SSL certificates are required for all types of web traffic, particularly fintech traffic because they ensure encryption of communication between the browser and the server. In fact, Google insists on using HTTPS SSL certificates.
SECURITY SHOULD BE INCLUDED IN REGULAR WORKFLOWS
Multiple security surveys have repeatedly stated that employees’ unawareness is the main vulnerability to cyberattacks. A simple click on an unsafe URL has the potential to compromise the security of the entire organization.
A company must have a proper security plan in place in the event of a security breach. Security breaches must always be considered when learning everything there is to know about FinTech app security.
Data backup policy:
A company’s tech team should prioritize having a proper mechanism in place to automatically backup code, data files, and important databases. The organization must decide on the frequency and importance of the backup process. The backup program must be designed to be simple in order to facilitate disaster recovery. Furthermore, businesses must practice disaster recovery in order to understand and review the key metrics underlying flaws and issues.
Non-Disclosure Policies:
A non-disclosure agreement is a necessary document in the development of a fintech app. Employees, contractors, vendors, data-entry operators, and others who are involved in the development and maintenance of the fintech service should sign non-disclosure agreements with the fintech company.
CUSTOMERS SHOULD BE EDUCATED
Even if a company’s security system is excellent, with all updates in place, users can still be vulnerable to hacks if they do not understand basic safety and security measures.
As a result, companies should educate users on some safe practices to ensure the security of their data. Here are some ideas that businesses could share with their customers:
- Use only official, authorized app stores because they are less vulnerable to cyber attacks.
- The use of fintech applications on public Wi-Fi networks is not permitted.
- Think about using anti-virus software.
- On fintech apps, never save username and password credentials.
- Avoid rooting devices that could expose you to hackers.
- Use a VPN for additional security.
By including easily accessible documents with all the details on your website, you can keep your customers educated and aware of all the best practices and tips.
A payment blocking feature could be used in addition to these steps by a fintech app. It can detect suspicious transactions and unusual activity and alert authorities in real-time.
CONCLUSION
Fintech is widely recognized as the future of financial services. If you have decided to hire someone to develop your fintech app, make sure you hire the best in the business because the industry faces many challenges with its security systems.
Here are a few things to think about if you want to outsource.
Are they security experts?
Do they have a diverse skill set?
We would be delighted to create the FinTech app of your dreams for you! Schedule a call with us and let’s get ready to fly your dream together!
Recommended Read: How Much Does It Cost to Develop a FinTech App?
