States to secure fintech security before advancing in fintech

Finance, News

With the fintech advancing and the world moving towards a digital reform in the finance and banking systems the United States is also adopting the new digital finance and banking systems but –is the world ready yet?

Hackers trying to take control of bank and credit card accounts are on the rise and are now among the biggest challenges for U.S. financial authorities, a top U.S. Treasury Department official said recently. So-called account takeovers and are leaving consumers vulnerable across financial platforms such as PayPal and Robinhood, Kenneth A. Blanco, director of the Financial Crimes Enforcement Network, said at the Federal Identity (FedID) Forum and Exposition Sept. 24.  Digital identity is a national security issue and most U.S. financial system users have some information, such as social security numbers, compromised at some point, Blanco said. Most hacking and phishing schemes aiming to get consumer information will target banks because of account volume, but other popular targets are casinos and insurance companies. In turn, captured information can be used to register falsified accounts on other financial platforms to access the U.S. financial market. financial technology platforms such as Robinhood may be vulnerable to such schemes: By using stolen data to create fraudulent accounts on fintech platforms, cybercriminals exploit the platforms’ integration with various financial services to initiate seemingly legitimate financial activity while creating a degree of separation from traditional fraud detection efforts and sometimes even go unpunished as we lack a security system.

The United States is more concerned about its financial systems and is considering working on security for online finance systems rather than developing and implementing these systems without reforming the security of these systems.