6 Best Security Practices for Fintech Companies

In the age of technology, we’re relying less and less on traditional banking and financial services such as in-person banking, investment opportunities, credit unions, and more.

This technological revolution is due to Financial Technology or Fintech. Fintech startups like Stripe, PayPal, and Venmo are changing the way we store, spend, and transfer money from one place to another.

Your Fintech platform must follow proper security practices to keep your customer data safe at all times. In this article, we’ll discuss some best practices for Fintech security.

1. Stay on top of the digital-banking environment

While we see more and more banks turning to a digital experience, fintech companies need to think about doing the opposite sometimes. These companies need to have FDIC charters to instill confidence in their consumers. The best fintech companies will also have a strong security policy.

2. Have an AML policy

If Fintech companies plan on growing as big or larger than the major financial institutions, they need to implement an anti-money laundering policy into their standard security procedure. The use of digital currency such as bitcoin makes it easier for money laundering to occur since there are many cross-border transactions. Blockchain and AI are useful for detecting abnormalities in the sale, and too many issues can result in public slandering and, ultimately, the end of your fintech startup.

3. Consumer options

As with traditional institutions, fintech companies need to offer options to comply with the Consumer Financial Protection Bureau regulations. From a security perspective, these companies need to ensure that these options are kept exclusive to the person or people who choose this option. When all company data isn’t stored correctly, it’s easier for malicious attackers to access that information causing breaches of personally identifiable information.

4. Identity Protection

While the fintech industry keeps growing, so must it’s security. Companies must protect their customer’s personal information. It is your responsibility as the receiver of the data to use it wisely and offer plenty of security measures to protect it.

Gone are the days of in-house server storage where you could slip out a disc and have all the information you ever need. Companies are switching over to cloud-based solutions that make it easier to get the data but not if you have the right security measures in place.

5. Restrict Access to Data

Many cyberattacks indeed happen from within a company. When you’re dealing with a fintech company, you might be talking a large number of remote workers who have access to information all across the planet. When this happens, you can’t always keep a close tab on each individual and what they’re doing with the data.

One of the most important things you can do as a business owner is to restrict access to specific data and only allow employees what they need to do their job. There are many tools out there that will do this.

When you only allow lower-level employees access to the necessary data they need to complete their job, you have less of a chance of running into an in-house malicious attack.

6. Proper training is key

What many business owners don’t realize is that most data breaches occur when employees aren’t adequately trained on how to identify red flags or warning signs. Many cyber-attacks occur through phishing emails and malware that makes its way into a network through email attachments.

These types of attacks can easily be prevented by training your staff on cybersecurity and what they need to look out for. If you’re following all the previous points outlined in this article and you’re training your employees properly, you won’t have to worry.

How Tauria Can Help

One significant area overlooked in your cybersecurity efforts is your communication of sensitive information. Tauria helps protect your customer data with military-grade encryption and data storage of a private and secure cloud-based platform.

Sending personal information through email and payment gateways is one way that malicious attackers access your data and steal valuable information, money, and other things from you and your customers.

It’s essential to protect your company information as well by using Tauria to communicate with other team members regarding tasks and goals in your company.

The fintech industry is growing rapidly, and it’s essential to use tools like Tauria to help your security grow with your growing company.