Fintech

5 Common Ways a Fintech Company Could Be Hacked—and How Passkeys Can Help Prevent Them

Syd Abrams
October 28, 2024

In today’s digital world, fintech companies are prime targets for hackers due to the sensitive nature of their data and the financial assets they manage. Cybercriminals continuously evolve their methods, exploiting weak points in security systems to gain access to valuable information. Below, we’ll explore five of the most common ways fintech companies can be hacked.

1. Phishing Attacks

Phishing remains one of the most common and effective hacking techniques. In phishing attacks, cybercriminals trick employees or customers into providing sensitive information, such as usernames, passwords, and even multi-factor authentication codes, by pretending to be a trustworthy entity.

2. Credential Stuffing

Hackers often use stolen usernames and passwords from one service to try and access another service in an attack known as credential stuffing. Many users, unfortunately, reuse the same passwords across multiple platforms, giving hackers an easy entry point when data breaches occur.

3. Man-in-the-Middle (MitM) Attacks

In a MitM attack, hackers intercept communication between two parties—such as a user and a server—to steal or alter the data being transmitted. This is particularly dangerous during the authentication process, where attackers could steal credentials or session tokens.

4. Brute-Force Attacks

Brute-force attacks occur when hackers attempt to guess passwords by systematically trying every possible combination until the correct one is found. While lengthy, these attacks can still be effective, especially if users employ weak passwords.

5. Insider Threats

Sometimes, the threat doesn’t come from outside the company, but from within. Disgruntled employees or contractors with access to sensitive information can exploit their privileges to carry out malicious activities, such as leaking data or bypassing security protocols.

Elevate Fintech Security with Passwordless Authentication

As fintech companies face increasingly sophisticated threats, the need to eliminate traditional passwords has become clear. Weak passwords leave both users and systems exposed to a range of attacks, including phishing, credential stuffing, and brute-force attacks. Solutions like Passage by 1Password  eliminate passwords from the security equation, replacing them with device-bound authentication methods, cryptographic key pairs, and biometrics. These technologies prevent unauthorized access, ensure encrypted data transmissions, and make attacks like brute-forcing and phishing virtually impossible, even for insider threats. By adopting passwordless solutions, fintech companies can fortify their defenses, safeguarding sensitive customer data and maintaining trust in an increasingly digital financial landscape.

Are you ready to fortify your fintech business with the future of authentication? It’s time to leave passwords behind and embrace a more secure digital landscape. Let’s chat today to start protecting your business and customers.