Available online June 2024 | Guma Ali, Maad M. Mijwil, Bosco Apparatus Buruga, Mostafa Abotaleb
This paper provides a comprehensive review of cybersecurity issues and their mitigation measures in the FinTech industry. The fourth industrial revolution has led to the widespread adoption of financial technologies (FinTech), which use emerging technologies to deliver efficient financial services. However, the security of FinTech systems and networks remains a critical concern. The paper reviews the history and evolution of FinTech, its drivers, segments, ecosystem, business model, and applications. It then analyzes the most pressing cybersecurity issues facing FinTech firms, such as privacy concerns, data breaches, malware attacks, hacking, insider threats, identity theft, social engineering attacks, and distributed denial-of-service attacks. In response to these issues, the paper evaluates various mitigation strategies and best practices adopted by FinTech firms and regulatory bodies globally. These measures include technological solutions such as authentication and access control mechanisms, cryptography, big data analytics, intrusion detection/prevention systems, regular data backup, artificial intelligence and machine learning, cloud computing technologies, blockchain technologies, and fraud detection and prevention systems. The paper also emphasizes the importance of FinTech regulatory sandboxes, regulatory compliance, basic security training, continuous monitoring of threats, zero-trust policy, robust cybersecurity culture, regular testing, and stringent security policies to strengthen the FinTech ecosystem's cyber resilience. Based on empirical research, industry reports, and regulatory guidelines, this review brings together existing information and highlights upcoming trends in FinTech cybersecurity. It emphasizes the importance of a collaborative strategy combining industry stakeholders, regulators, legislators, and cybersecurity specialists to address the growing cyber threat situation successfully. Ultimately, this research will help develop robust security mechanisms for FinTech systems and networks to achieve sustainable financial inclusion.This paper provides a comprehensive review of cybersecurity issues and their mitigation measures in the FinTech industry. The fourth industrial revolution has led to the widespread adoption of financial technologies (FinTech), which use emerging technologies to deliver efficient financial services. However, the security of FinTech systems and networks remains a critical concern. The paper reviews the history and evolution of FinTech, its drivers, segments, ecosystem, business model, and applications. It then analyzes the most pressing cybersecurity issues facing FinTech firms, such as privacy concerns, data breaches, malware attacks, hacking, insider threats, identity theft, social engineering attacks, and distributed denial-of-service attacks. In response to these issues, the paper evaluates various mitigation strategies and best practices adopted by FinTech firms and regulatory bodies globally. These measures include technological solutions such as authentication and access control mechanisms, cryptography, big data analytics, intrusion detection/prevention systems, regular data backup, artificial intelligence and machine learning, cloud computing technologies, blockchain technologies, and fraud detection and prevention systems. The paper also emphasizes the importance of FinTech regulatory sandboxes, regulatory compliance, basic security training, continuous monitoring of threats, zero-trust policy, robust cybersecurity culture, regular testing, and stringent security policies to strengthen the FinTech ecosystem's cyber resilience. Based on empirical research, industry reports, and regulatory guidelines, this review brings together existing information and highlights upcoming trends in FinTech cybersecurity. It emphasizes the importance of a collaborative strategy combining industry stakeholders, regulators, legislators, and cybersecurity specialists to address the growing cyber threat situation successfully. Ultimately, this research will help develop robust security mechanisms for FinTech systems and networks to achieve sustainable financial inclusion.