Financial Technology (Fintech) Companies have a strong security posture but are at risk from third-party weaknesses, according to analysis.
In its latest report, securescorecard stated that the Fintech Sector Ranked Highest of All Sector Studed when it Came to Security Posture, but it found potential third-part weak links count open the door to security breaches.
The Risk Management Specialist said there is “Growing Exposure in the Financial Supply Chain as even top-rated Fintech Firms face Systemic Third- And Fourth-Parthy Cyber Risks”.
In its report, Defending the Financial Supply Chain: Strengths and Vulnerabilites in Top Fintech CompaniesSecurescorecard revised that 41.8% of breaches impacting top fintech companies originated from third-party suppliers, and more than 18% of Breaches Came Via Via Fourth Parties-The Partnes of the Partners of the Partners of the Partners of the Parties of the Parties of the Parties. Partners.
Securescorecard, which analysed the security posture of 250 fintechs, said the report Supply Chain Risk,
Securescorecard stated that Fintech Companies are now “Essential Components of the Global Financial Infrastructure”, Powering Payments, Wealth Management, Compliance, Fraud Detection, and more.
It said today, traditional financial institutions Increasingly on Fintechs to Modernise their Systems and Remain Competitive. “This rapid integration has created a new kind of interdependency – one where vulnerabilities in a single vendor can casting across the borader financial ecosystem. As this report shows, ever finch company Strong Internal Cyber Security Programmes Can Expese their partners to significant Third-Party and Fourth-Party Risks, ”It stated.
Third-party breaches are edge cases-They Reveal Structural Risk. In Fintech, That means Operational Outages Across Payment Systems, Digital Asset Platforms and Core Financial Infrastructure
Ryan Shestobitoff, SecureScorecard
The Fintechs Analysed Include Companies operating in Payments, Digital Assets, NeobankingFinancial planning and infrastructure.
“One Expeder can take down critical infrastructure,” said Ryan Shestobitoff, Senior Vice-President in SecureCorecard's Threat Research and Intelligence Unit. “Third-party breaches are edge cases-they reveal structural risk. In Fintech, that means operational outages Across Payment Systems, Digital Asset Platforms and Core Financial Infrastructure.”
Finance firms relay on many third parties to support their operations, and the finance sector is highly interconnected.
One Senior Security Professional, who has 30 years' Experience in the UK Banking Sector, Said Attackers Target Multiple Technologies in A High Interaconneted Industry.
“You're Reliant on Software from Multiple Different Suppliers, and it's the weakest link that that's going to take you down, and thatCold be Anywehere,” he added.
“When you go online and you look at, say, Marks and Spencer's WebsiteThat's the bit of the iceberg Above the water. But below that, there are thousands of components holding it up. That's where the baddies are going. They're Looking Around underwater for the weakest link in the iceberg and then chipping away. “
The security professional said attackers will work their way through the software stack. “You've got the operating system at the bottom, then you've got network software, then you've got security software, and you've got various components of applications from Multiple Suppliers,”
Securescorecard found that file transfer software and cloud platforms was the most commonly common points, with about 46% of companies in applications in the application. It recommended that Fintechs Strengthen Third-Party and Fourth-Parthy Risk Eversight, and Tier Suppliers based on Exposure and Breach History Than Spend Oor Busines Value.
