How to make sure your systems are secure | Fintech

Let’s take a look at the latest approaches and techniques that can help fintech industry to protect their sensitive data within their engineering ecosystem.

#1 Encrypt sensitive data

Data encryption is the use of complex mathematical algorithms to encode data. To decode this data, special keys are needed. Here are the four most robust encryption algorithms you can use:

Advanced Encryption Standard (AES). AES is a symmetric cipher, which means it uses the same key for encryption and decryption. The algorithm uses AES-128, AES-192, and AES-256 block ciphers, which use 128-, 192-, and 256-bit key lengths. A 128-bit key encrypts data in 10 rounds, a 192-bit key in 12 rounds, and a 256-bit key in 14 rounds. Each round includes data substitution, transposition, and mixing.
The US government uses AES encryption to protect sensitive and classified data.

Rivest-Shamir-Adleman (RSA). RSA is an asymmetric encryption algorithm that uses different keys for encrypting and decrypting data. The encryption key is public, while the decryption key is private. This encryption algorithm is highly secure. However, it’s slower than other algorithms, and this is especially noticeable when working with large data sets.

Triple Data Encryption Standard (TripleDES). TripleDes is based on the DES cipher. DES is an implementation of a Feistel cipher that uses a 56-bit key to encrypt information. To enhance security, TripleDES applies the DES cipher algorithm three times to each data block. This algorithm is often used to encrypt credit card PINs and other types of passwords.

#2 Create secure code and a secure architecture

The quality of your application’s architecture and code are vital for its security. Buggy, messy code is easy to hack. If your application has some security issues in its business logic, these issues will be difficult to detect, even with automation tools. The best way to prevent them is to do code reviews and employ pair programming.

The technology stack you choose for your project also matters. The main programming language for a FinTech startup has to be fast, scalable, reliable, versatile, well-supported, and secure.

#3 Secure authentication

Secure and precise identification and authentication is vital for FinTech software. Apart from OTP and adaptive authentication, you can employ the following approaches:

Role-based access control -

Role-based access control (RBAC) is an approach in which access to software and systems is granted according to a user’s role. Each type of role can access only predefined files and systems and is restricted from accessing other parts of the software.

Password expiration
Not only cyberattacks and malware can cause data leaks and breaches. Human errors and, in some cases, willful actions by employees can also lead to data loss. Systematically changing passwords reduces the risk of data leaks and allows you to protect sensitive data from ex-employees and unexpected accidents.

Shorter session lifetimes
The session lifetime is the time during which a user can be signed in to the system or program. By reducing the session time, you can minimize the risk of malicious third-party access to a user’s applications from an active session.

Tracking failed sign-in attempts
Tracking failed sign-in attempts and other suspicious activity allows you to detect and prevent cyberattacks. Set a limit for sign-in attempts and ask for additional (multi-step) identity verification if a user exceeds this limit.

#4. Tokenization

Tokenization is an approach to securing data whereby meaningful data is turned into random strings of symbols, or tokens. Tokens reference the original data. However, they can’t be used to decrypt the original information unless you have access to a special database. This database, called a token vault, stores the relationships between the original data and the generated token. Without the database, tokens are useless sets of symbols.

Tokenization is a highly secure method for storing and transmitting data. The most important step here is to protect the token vault. One common way to do this is to encrypt the database.

#5 Code obfuscation

Code obfuscation is an effective way to protect your software from cloning. Program clones look and work very similarly to the original software and aim at gathering users’ personal data.

Obfuscation complicates the analysis of an app’s source code, makes it impossible to understand how algorithms work, and prevents reverse engineering.

#6 Real-time threat intelligence

Earlier, organizations get to know of a security incident after the lapse of a considerable amount of time, subsequently, they would respond to it.

Knowing the cybersecurity threats real-time enables organisations to back-up your sensitive data, which will allow you to access uncompromised data in the event of a cyber-attack.You can patch vulnerabilities, which will ensure that cybercriminals aren’t able to exploit them.

#7 Secure your APIs

You will likely design, develop, and consume APIs as part of building a FinTech app. Cyber-attackers frequently target APIs, and hacked APIs contribute significantly to data breaches. You can secure your APIs by the following means:

a.Use authentication tokens.
b.Encrypt your data and use digital signatures.
c.Proactively identify and address API vulnerabilities.
d.Use quotas, throttling, and API gatewaysd.Use quotas, throttling, and API gateways.
e.Using cloud computing smartly

#8 Next-generation firewalls

Next-generation firewalls are important to thwart web-based malware and intrusion attempts. These modern firewalls are more powerful than traditional firewall solutions since they offer better inspection capabilities and control over individual applications in a network.

Parting thoughts

FinTech is a thriving industry for both startups and hackers. That’s why it’s so important to protect your software product and all the information it deals with from the start before an attack happens.