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Cybersecurity in FinTech: Challenges, Solutions, and a Business Protection Strategy

  • ESKA ITeam
  • Jun 18
  • 4 min read

Updated: Jun 25

Why FinTech Is a Prime Target for Cybercriminals


FinTech platforms process millions of financial transactions daily. But with growth comes complexity—more data, more integration points, and more exposure. These factors create the perfect conditions for cyberattacks:

  • You handle financial transactions, personal data, and access tokens—high-value assets for attackers.

  • You integrate via APIs with banks, PSPs, and regulators—often the weakest links.

  • You deploy features rapidly, leaving less time for thorough security testing.


Notable FinTech Breaches:


  • Revolut (2023): Over 50,000 accounts exposed due to a flaw in the internal authorization mechanism.

  • Robinhood (2023): A social engineering attack on the support team compromised 7 million user accounts.

  • CoinsPaid (2023): Hackers stole $37 million through phishing and internal network access.



Common Cyber Threats in FinTech


FinTech infrastructure consists of numerous interconnected elements—backend systems, APIs, mobile apps, third-party services (e.g., KYC, PSP, analytics). The most frequent threats include:

  • Phishing & Social Engineering – often targeting support teams with access to admin panels.

  • Credential Stuffing – using breached passwords from past leaks in automated attacks.

  • API Attacks – parameter tampering, authentication bypasses, and lack of rate limiting.

  • DDoS Attacks – overloading systems to disrupt payment operations.

  • Mobile App Attacks – token theft, MITM attacks on unencrypted traffic.

Attackers aim for the weakest entry point—poorly secured APIs or misconfigured mobile authentication are common targets.



Regulatory Landscape: DORA, ISO 27001, SOC 2, PCI DSS


DORA (Digital Operational Resilience Act)

A mandatory EU regulation effective in 2025, DORA requires FinTechs to:

  • Conduct security testing (penetration testing, red teaming)

  • Implement incident response and business continuity plans

  • Monitor risks from cloud and IT service providers

  • Enable cyber incident logging, analysis, and reporting

Why it matters: If you serve EU clients or partner with regulated financial entities, DORA compliance is essential.


ISO/IEC 27001

An international standard for Information Security Management Systems (ISMS). It:

  • Provides a structured framework for assessing and improving security

  • Is often required by banks and payment providers

  • Enhances investor and partner trust

When to certify: During the scale-up phase or when negotiating with enterprise partners.


SOC 2

Developed for SaaS companies, SOC 2 evaluates compliance across five key principles:

  • Security

  • Availability

  • Processing Integrity

  • Confidentiality

  • Privacy

Who needs it: FinTech or SaaS providers entering the U.S. market.



Where to Start: Security Scenarios by Growth Stage


MVP / Pre-seed
  • Run a penetration test

  • Implement MFA

  • Secure cloud environments

  • Validate API security and restrict access with RBAC


Go-to-Market

Engage a vCISO for strategic planning

  • Deploy a WAF (Web Application Firewall), start DevSecOps practices

  • Test your mobile app

  • Begin documenting policies and prepare for SOC 2 or ISO 27001


Scale Phase
  • Implement SIEM (Security Information and Event Management)/XDR, MDM (Mobile Device Management), PAM (Privileged Access Management), and DLP

  • Establish logging and incident response workflows

  • Red Team exercises become critical


Entering International Markets (U.S., EU)
  • Begin ISO 27001 or SOC 2 certification

  • Prepare DORA compliance documentation

  • Schedule regular penetration testing



FinTech Cybersecurity Strategy:

A Practical Guide


Penetration Testing

Simulates a real-world attack to:

  • Identify vulnerabilities before attackers do

  • Prepare for audits or compliance checks

  • Remediate risks before customer impact


Red Team / Blue Team Exercises

Red Teams simulate advanced persistent threats; Blue Teams defend. Benefits:

  • Sharpen your team's incident response

  • Evaluate detection system effectiveness

  • Generate insights to improve policies and reduce response times


Compliance Consulting

Security partners help you:

  • Conduct a gap analysis (DORA, ISO, SOC 2)

  • Build documentation, policies, and logging infrastructure

  • Support you through certification or audit processes


Virtual CISO (vCISO)

  • Designs your cybersecurity from scratch

  • Acts as internal CISO during audits or external evaluations

  • Prepares your team for certification readiness



What a FinTech Company Risks in a Breach


🔻 Financial Loss – Investigation, remediation, and compensation costs often exceed $100,000+

🔻 Reputation Damage – One public incident can lead to a 25–40% customer loss

🔻 Fines & Regulatory Scrutiny – Up to €20 million under GDPR or disqualification from payment systems

🔻 Lost Investment – Investors avoid companies with poor security histories



Key Security Tools & When to Implement Them

Growth Stage

Key Security Measures

Early Stage

MFA, cloud security reviews, secure APIs

Growth Phase

WAF, DevSecOps, SIEM

Scale-Up

DLP, PAM, MDM, Secure SDLC

International Expansion

ISO 27001, SOC 2, DORA compliance

Security is not a one-time project—it’s an ongoing process.



The Role of vCISO: Fast-Tracking Cyber Maturity


What Is a vCISO?

A Virtual CISO is an external cybersecurity expert who fulfills the role of an in-house CISO on a subscription or consulting basis.

Perfect for rapidly scaling FinTech companies that:

  • Can’t yet hire a full-time CISO

  • Need expert support for audits or certifications

  • Require strategic guidance for international growth


vCISO Functions for FinTech

  • Security Governance: Policies, procedures, control structure

  • Risk Management: Ongoing risk assessments and mitigation guidance

  • Compliance: Readiness for ISO 27001, SOC 2, DORA, PCI DSS

  • Security Architecture Review: Product, API, and cloud security assessments

  • Security Awareness Training: Employee education programs

  • Vendor Relations: Support with security questionnaires and due diligence


vCISO is most valuable when:

  • You lack internal compliance or security expertise

  • Investors or partners request immediate security evidence

  • You need to unify security across tech, HR, and ops

  • Your CTO lacks bandwidth for cybersecurity leadership

A vCISO helps FinTech companies mature faster, secure funding, and certify successfully on the first try.



How We Work with FinTechs: Step-by-Step


  1. Risk Diagnosis Security audit, architecture review, pentesting, or gap analysis.

  2. Security Roadmap Step-by-step security policy and tech implementation plan.

  3. Solution Deployment Implement SIEM, XDR, WAF, DLP, and incident response workflows.

  4. Certification Support Documentation and preparation for ISO 27001, SOC 2, or DORA compliance.

  5. Ongoing Monitoring Delivered via our MDR/SOC-as-a-Service or vCISO support.



Recommendations


FinTech is built on trust, compliance, and speed. To scale successfully:

  • Build your security from the MVP stage

  • Invest in proactive defense

  • Prepare early for DORA, ISO, or SOC 2

  • Work with partners who understand FinTech-specific risks

ESKA is your trusted cybersecurity partner, guiding FinTech companies from their first audit to international certifications.

Request a free consultation — we’ll help you identify the best starting point.


 
 
 

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