A Comprehensive Review on Cybersecurity Issues and Their Mitigation Measures in FinTech

Abstract

The fourth industrial revolution has seen the evolution and wide adoption of game-changing and disruptive innovation "financial technologies (FinTech)" around the globe. However, the security of FinTech systems and networks remains critical. This paper comprehensively reviews the evolving landscape of cybersecurity issues within the FinTech sector and explores effective mitigation measures. Four independent researchers reviewed relevant literature from IEEE Xplore Digital Library, ScienceDirect, Taylor & Francis, Emerald Insight, Springer, SAGE, Wiley Online Library, Hindawi, MDPI, ACM Digital Library, IGI Global, and Google Scholar. The research paper begins by examining the history and evolution of FinTech, drivers for the growth of FinTech, segments of the FinTech industry, FinTech ecosystem, FinTech business model, and FinTech application. Subsequently, it then delves into an analysis of the most pressing cybersecurity issues confronting FinTech firms, such as privacy concerns, data breaches, malware attacks, hacking, insider threats, identity theft, social engineering attacks, distributed denial-of-service attacks, and others. In response to these cybersecurity 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.