As the financial technology (fintech) industry continues to expand and evolve, the importance of cybersecurity cannot be overstated. In an increasingly digital world where sensitive financial information is exchanged online, the need for robust cybersecurity measures is paramount. In this blog post, we will explore key statistics and trends related to cybersecurity in the fintech industry, shedding light on the challenges and opportunities facing this dynamic sector.
The Latest Cybersecurity In The Fintech Industry Statistics Explained
Estimates suggest that 67% of finance-based organizations identify cybersecurity as their number one concern.
The statistic indicates that a high proportion, specifically 67%, of finance-based organizations prioritize cybersecurity as their top concern. This suggests that these organizations recognize the importance of protecting their data and systems from potential cyber threats, such as hacking, data breaches, and other cyber attacks. The emphasis on cybersecurity highlights the growing awareness within the finance industry of the risks and challenges posed by the evolving digital landscape. By acknowledging cybersecurity as a top priority, these organizations are likely taking proactive measures to strengthen their defenses and mitigate potential risks to safeguard their sensitive financial information and maintain the trust of their customers and stakeholders.
More than 70% of fintech companies do not communicate their cybersecurity measures effectively to customers.
The statistic “More than 70% of fintech companies do not communicate their cybersecurity measures effectively to customers” indicates that a significant majority of financial technology companies fail to adequately convey their cybersecurity practices to the public. This lack of effective communication presents a concerning gap in transparency and accountability, as customers need to be informed about the measures in place to protect their sensitive financial data. Fintech companies are entrusted with handling valuable personal information, making clear and transparent cybersecurity communication crucial for building trust and confidence among customers. Improved communication efforts are necessary to ensure that customers are aware of the security measures in place to safeguard their financial information and mitigate potential risks associated with cyberattacks.
$500 billion per year, is the global FinTech cybersecurity market in 2019.
The statistic ‘$500 billion per year is the global FinTech cybersecurity market in 2019’ indicates the total value of the market dedicated to cybersecurity solutions specifically for the financial technology (FinTech) industry around the world in the year 2019. This substantial figure underscores the significant investments made by FinTech companies, financial institutions, and other stakeholders to protect their digital assets, customer data, and financial transactions from potential cyber threats and breaches. The high value also reflects the growing recognition of the importance of cybersecurity in the rapidly evolving landscape of financial technology, where the risks of cyberattacks and data breaches are increasingly prevalent and potentially damaging.
In 2021, cyber-attacks against the financial sector increased by 238%.
The statistic stating that cyber-attacks against the financial sector increased by 238% in 2021 indicates a significant rise in the number of digital security incidents impacting financial institutions compared to the previous year. This steep increase highlights the growing threat posed by cybercriminals targeting the financial industry, potentially resulting in financial losses, data breaches, and disruptions to services. Such a sharp rise in cyber-attacks underscores the importance for financial organizations to prioritize cybersecurity measures, invest in advanced defense mechanisms, and continuously enhance their resilience to mitigate the risks associated with cyber threats.
Fintech companies in the UK experienced a 480% increase in cyber incidents in 2018.
The statistic ‘Fintech companies in the UK experienced a 480% increase in cyber incidents in 2018’ conveys a significant rise in the number of cyber security events reported by financial technology firms within the UK over the course of that year. The 480% increase indicates that these companies faced almost five times as many cyber incidents in 2018 compared to the previous period, highlighting the growing importance and vulnerability of the fintech sector to cyber threats. This data suggests that fintech companies need to prioritize their cybersecurity measures to protect sensitive financial information and secure their digital infrastructure against the increasing risk of cyber attacks.
45% of financial institutions view non-dedicated security budgets as a major challenge in establishing a security strategy.
This statistic indicates that a significant portion, specifically 45%, of financial institutions perceive non-dedicated security budgets as a major obstacle when it comes to formulating a comprehensive security strategy. This suggests that these institutions believe that having allocated budgets specifically for security purposes is crucial for effectively addressing security concerns and safeguarding their operations. The lack of dedicated resources for security may lead to gaps in protection, leaving the institutions vulnerable to potential threats and breaches. Therefore, the findings underscore the importance of prioritizing and allocating sufficient financial resources towards cybersecurity efforts within financial institutions to enhance their overall security posture and mitigate risks effectively.
More than 66% of the financial sector had experienced a ransomware attack in the last year.
The statistic “More than 66% of the financial sector had experienced a ransomware attack in the last year” indicates that a significant majority of businesses within the financial industry reported being targets of ransomware attacks over a one-year period. Ransomware attacks involve a malicious software that encrypts or locks a victim’s files and demands a ransom to restore access. This statistic highlights the pervasive threat that ransomware poses to financial institutions and underscores the importance of implementing robust cybersecurity measures to protect sensitive data and systems from such attacks. The high prevalence of ransomware incidents in the financial sector signifies a pressing need for increased vigilance and readiness in combating cyber threats within the industry.
96% of companies have seen mobile phishing attempts, a growing security concern for fintech firms.
The statistic indicates that a significant majority, 96% of companies, within the fintech industry have encountered mobile phishing attempts, signaling a prevalent and increasing security threat faced by these firms. Mobile phishing involves cybercriminals using fraudulent means to deceive individuals into disclosing sensitive information, such as login credentials or financial data, via mobile devices. As more financial transactions and sensitive activities are conducted on mobile platforms, the threat of mobile phishing poses a serious risk to the security and privacy of fintech firms and their customers. Addressing this growing concern requires robust cybersecurity measures, employee training, and proactive measures to safeguard against such attacks to protect the integrity of financial data and maintain trust in the industry.
Misconfiguration was the leading cause of fintech cybersecurity incidents, found in 54% of the cases.
The statistic indicates that misconfiguration was the most prevalent factor contributing to cybersecurity incidents in the fintech industry, accounting for 54% of the cases studied. Misconfiguration refers to errors in setting up or maintaining systems and software that expose vulnerabilities and create security risks. In the context of fintech, where sensitive financial data and transactions are at stake, misconfigurations can result in serious breaches and financial losses. This statistic underscores the importance of proper configuration management practices, continual monitoring, and timely detection and correction of misconfigurations to strengthen cybersecurity in the fintech sector and safeguard against potential threats.
By 2024, the global cybersecurity market is projected to more than double to $170.4 billion.
The statistic stating that the global cybersecurity market is projected to more than double to $170.4 billion by 2024 suggests a significant and rapid growth trend in the industry. This projection indicates that there is a growing demand for cybersecurity solutions and services worldwide, reflecting the increasing importance of protecting digital assets and data from cyber threats. The substantial increase in market value also points towards the rising awareness among organizations and individuals regarding the risks associated with cyber attacks and the need to invest in robust cybersecurity measures. This statistic highlights the continued expansion of the cybersecurity market and underlines the ongoing efforts to enhance security in the digital realm to safeguard against potential cyber threats.
In 2019, there was a 67% increase in security breaches over the previous five years.
The statistic suggests that in 2019, the number of security breaches experienced a substantial 67% increase compared to the total breaches that occurred over the preceding five years. This increase is indicative of a concerning trend in cybersecurity, highlighting the growing threats and vulnerabilities faced by organizations and individuals. The sharp rise in security breaches emphasizes the urgent need for robust cybersecurity measures and heightened awareness to protect sensitive data and mitigate potential risks. It underscores the importance of continuous monitoring, proactive security measures, and investments in cybersecurity infrastructure to safeguard against cyber threats in an increasingly digital world.
24% of financial institutions believe that cyber risk is the most important risk they face.
The statistic indicates that nearly a quarter of financial institutions consider cyber risk to be the primary risk they encounter, highlighting the increasing importance of cybersecurity in the financial sector. This suggests that a significant portion of financial institutions perceive cyber threats as more significant than traditional risks such as credit, market, or operational risks. The fact that such a substantial percentage of institutions prioritize cyber risk underscores the recognition of the potential financial and reputational impact of cyberattacks on the industry. This statistic underscores the imperative for financial institutions to invest in robust cybersecurity measures to protect their assets and clients from cyber threats.
Just 30% of financial companies conduct regular security training for their staff.
This statistic indicates that a relatively low proportion, specifically 30%, of financial companies prioritize regular security training for their staff. This could imply that a majority of financial companies may be lacking in adequately equipping their employees with the necessary knowledge and skills to effectively address cybersecurity threats and risks. Given the sensitive nature of financial data and transactions handled by these companies, the lack of ongoing security training could potentially expose them to a higher risk of data breaches, fraud, and other security incidents. It underlines the importance of enhancing cybersecurity measures within the financial sector to mitigate risks and protect both the companies and their clients’ assets and information.
References
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