Introduction
Fintech companies are rapidly expanding and are preeminent in today’s economy. A fintech company is an online financial services provider that uses technology to improve the customer experience. Fintech companies offer services such as credit scoring, investment advice, and loan products. They typically use modern technologies like data analytics and machine learning to provide better service to their customers. There has been a spate of cyberattacks on fintech companies in the recent years.
As a result, data security is top-of-mind for many owners. Unfortunately, data encryption solutions can be expensive and complex, making it difficult for companies of all sizes to find a solution that works well for them. To help you choose the best encryption software for your fintech company, this blog overviews key factors to consider, such as primary security challenges, types of encryption, and evaluation criteria.
FinTech Regulations and Policies
Security is one of the key concerns for any FinTech company. That’s why it’s important to choose the right encryption solution that meets your needs and regulatory requirements. Make sure to consider your company’s needs and requirements when selecting a product, such as HIPAA-compliance and PCI DSS-compliant. Additionally, ensure the encryption solution is easy to use and affordable for your team. Stay updated on FinTech regulations pertaining to your region so you can make informed decisions about security solutions.
Primary Fintech Security Challenges
The security of customer data is a top priority for any financial institution. With the increased sophistication involved in the hacking algorithm, Fintech companies are faced with multiple data security challenges. Hackers pry continuously to identify the vulnerabilities and gain unauthorized access. Posing as unauthorized users, they can cause a series of attack such as brute-force, ransomware, etc. Some of the primary data security challenges for the large corporations include:
Digital Identities
Digital identity theft is a major concern for the financial sector. Protecting your customers’ identities requires thorough and secure encryption solutions. There are several different encryption options available, so it’s important to choose one that best suits your business needs. Make sure you have a data security checklist and a data protection strategy in the event of a data breach.
Data Ownership
Fintech companies own a vast amount of data related to financial, taxation, Personal identifiable information and ID proofs of the individuals. The onus of protecting the data lies on the hands of Fintech organizations. All over the globe, regulations are in place to ensure data encryption standards are adopted by the companies.
Fintech Systems’ Vulnerabilities
Fintech systems are vulnerable to various cyber-attacks that can result in the theft of sensitive data. The common vulnerabilities found in Fintech systems include insecure passwords, weak authentication procedures, data stored across multiple devices and exchanged via unsecure means like emails, removable media. Hackers exploit all these methods to attack the company’s sensitive information.
Involvement of Third-party Services
Fintech companies often deal with different third-party platforms to execute transactions, collect data, exchange data and store data. As Fintech companies emerge into new markets, they take the services of third-party providers to conduct their operations swiftly. Exchange of data flow between Fintech and third-party service companies are a potential security concern and can be a point of data breach.
Cloud Migration
Moving your fintech company’s entire operations to the cloud can be a risky strategy, as it exposes your company’s data to security breaches. One of the biggest risks is that hackers will be able to access your company’s data while it is stored on the cloud. Another risk is that your company’s data could be stolen while it is being transferred between the cloud and your servers. With so much sensitive data now stored in the cloud, it’s easy for criminals to exploit any vulnerabilities that exist in these systems.
Human Errors
Human error is the primary cause of data breaches. To combat this, you need to implement strong encryption and authentication measures. This will protect your sensitive data from unauthorized access, thus saving you a lot of hassle and embarrassment in the event of a breach. You should also make sure that all employees are properly trained on how to handle sensitive data securely so that security issues don’t arise in the first place. You can do this by using cloud-based solutions that keep your data always up-to-date and accessible for when a breach does occur.
How Data Encryption Helps
Data encryption is a critical security measure that all Fintech companies should take into account. It helps protect your company’s data from being accessed by unauthorized individuals or organizations, and it also makes it difficult for hackers to steal your information.
There are a few different types of data encryption that you can use to protect your company’s data: symmetric-key encryption and asymmetric-key encryption.
- Symmetric-key cryptography: This type of encryption uses the same key to encrypt and decrypt data. This makes it difficult for anyone who might want to access the data to do so without knowing the key.
- Asymmetric-key cryptography: This type of encryption uses two different keys, one of which is used to encrypt data and the other to decrypt it. This makes it more secure since no single person has the complete key, making it more difficult for someone to decrypt the data without first knowing the key.
Evaluation Criteria for Encryption Solutions
Security is a top priority for any business, and encryption is a key part of that security strategy. When choosing an encryption solution, it’s important to take a comprehensive approach and evaluate a number of factors. These include: the encryption technology’s platform compatibility; security features; user interface and ease of use; and potential costs and benefits. It’s also important to consider how easy it will be to manage encryption settings, as well as user access privileges. Make sure that the chosen encryption solution meets your specific needs and is compatible with your business’s software and platform. Finally, be aware of potential hidden costs associated with encryption solutions, such as maintenance or support fees.
How Cryptainer Enterprise Helps Encrypt Data for Fintech
Data security is a top priority for Fintech companies, and encryption is a key part of that security strategy. That’s where Cryptainer Enterprise comes in. The data encryption software is easy to use and offers a variety of features that make data protection and security a breeze. The data is cryptographically encrypted in secured vaults using Blowfish at 448-bits. Admin module of the software has a password recovery option and controls the distribution of vaults across the systems.
Cryptainer Enterprise works on the existing hardware and encrypts data of all formats at rest in seconds. Another additional benefit is to encrypt all forms of data with Cryptainer Enterprise prior to saving on cloud accounts. The secured vault can be moved across Windows machines using the Cryptainer Enterprise install, thus giving corporate users a degree of flexibility when it comes to data security. Moreover, despite individual end users’ freedom to create separate passwords, corporate users can maintain control without admin intervention using the admin module. If an employee leaves or inadvertently encrypts vital data, it is possible for the corporation to recover data. Cryptainer Enterprise acts as a fundamental layer of security for enterprises and helps manage the hierarchical flow of information.
Conclusion
Security and compliance must be at the forefront of everyone’s minds. Businesses should make sure that their FinTech is trustworthy and that critical data like passwords is handled securely. To ensure that acquired and deployed or upgraded solutions truly and provably meet compliance and industry standards, security must become an internal governance issue.
In order to keep their and their customers’ data safe and sound, Fintech companies need an enterprise-grade encryption solution such as Cryptainer Enterprise. It uses unbreakable algorithms to give you complete peace of mind when it comes to confidentiality and security.
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