Amidst the Covid 19 pandemic, the download rate for the fintech apps has witnessed exponential growth. As per Forbes, the usage rate of the fintech apps has significantly grown by a whopping 72%, just in Europe. Apart from it, the revenue generated from global mobile payment touched the mark of $1400 Billion in 2020.
That being said, it is explicit that the public is relying more on the fintech software solution than ever before. Though it is an encouraging step in the digital transformation of the world, it also inflicts some real threats to the security of your money. Hackers are always searching for ways to bypass the fintech app’s security.
Hence the fintech app development services must build apps with high-security standards. Let us go ahead and explore more in this aspect.
Are Fintech Apps We Use Really Secure?
Fintech users are growing at a break-neck speed. The app’s easy-to-use approach and various other offered benefits have made them popular overnight. However, while these apps are enjoying their growth, a serious question that prevails is, have fintech app development companies keep up with the security of their apps?
Research conducted by Interlust suggests there is at least one flaw in the security of the top 150 fintech apps of the world. As per the findings, 81% of the apps leak data, 88% of them have cryptographic issues, and 77% of apps have flaws that can be a serious threat to financial organizations.
All these percentages signify that fintech apps are vulnerable both in respect to the total number of issues and the severity. Therefore, it is essential for the fintech app development services to build apps with enhanced in-app protection and security features.
Common Security Flaws in Fintech Apps
Many people don’t understand the seriousness of having proper security for their financial app. Their casual attitude of dealing with passwords and other security features can lead to information leaks and loss of your money.
Therefore, a fintech software solution must be created with high-core cryptographic algorithms that are impossible to crack. Some of the common flaws that hamper the security of fintech apps are as follows:
Insecure Data Storage
Data is the most fundamental part of every digital application. Every app needs some data to run and storage space for saving the data. Leaking out the data from your internal storage can be easily done if hackers get access to your system.
So to protect the sensitive data in your system, the internal storage drive must be protected with genuine antivirus apps. Moreover, make sure the fintech apps you use are built with proper security algorithms and measures to prevent data leaks.
Fintech apps are enabled with several authentication methods, from unique user IDs to strong passwords, fingerprint scans, PINs, etc. If proper security measures aren’t taken, the authentication can be bypassed using malware which can result in unauthorized access of data. Apps that use server-side authentication are more secure than those that use local authentication.
Data Leaks in Communication
Fintech apps need regular communication with the servers, external data sources, Bluetooth devices, etc., for carrying out their daily operations. However, the communication channel is one of the most targeted zones for hackers to leak data.
Several tools and techniques can be used to access the data and steal valuable information externally. Therefore, fintech app development companies must ensure to encrypt their communication channels using SSL and other required security algorithms.
Use of Outdated Cryptographic Algorithms
A big threat for many fintech apps is the outdated cryptographic algorithms they use for their data encryption. Technologies are innovating fast, and these days the best companies use quantum cryptography methods to encrypt their data. Simple algorithms are easier to break, and hence users should always opt for fintech apps that use the latest crypto algorithms.
Poor Code Quality
The security of your app is highly dependent on the quality of code in which the application program is written. A high-quality code is inclusive of
- The pattern usage
- Test coverage
- Consistent coding style
- Proper layering
Fintech software solution organizations must ensure that the code they develop uses all these methods. Poor code quality often leads to difficult maintenance of the app. Besides, a minor update or change in the code could lead to a potential threat.
Reverse engineering is a well-known technique used by modern-day hackers to steal data from fintech apps. It works by accessing the source code of a compiled file or app and further breaking it down to understand the functionality of the app.
It has the potential to reveal numerous backend authentication secrets. The application’s logic and security can be seriously hindered if an attacker is able to reverse engineer the code of the app successfully.
To protect fintech apps from this technique, code obfuscation tools should be used, making it harder for the hacker to make a logical connection between the different parts of the code.
It is very much possible for someone to change the different parts of your app’s binary code and create distinguished copies of it. A hacker can play around with the API calls and generate malicious code. Using phishing and other similar techniques, the attacker then distributes malicious copies of the app.
Specifically, mobile code is more vulnerable to code tampering. The application on mobile runs in an environment that is not under the control of the creator. Hence, fintech app development companies should build apps that can detect an intrusion as soon as the app is run on the smartphone.
Getting Secured Digital Fintech Apps
Fintech apps have already started playing a substantial role in making payments for different services and carrying out different financial operations. Having these apps is undoubtedly convenient for the users. Thereby, fintech app development services should ensure that the app they are developing and releasing in the market must consist of the most advanced security mechanism that any external attack cannot break.
Robert Jackson is a content cum digital marketer at Solution Analyst, a leading Finance App Development Solution. He is an avid reader and likes to remain updated for technological advancements in the domains of the web, mobility, IoT, and emerging technologies. His articles are informative and interesting at the same time as he expresses insightful thoughts clearly.