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Fintech Firms Fortify Defenses Amid Cyber Surge
2 Nov
Summary
- Fintechs are shifting from intrusion prevention to detection and containment.
- Cashfree reports a tenfold increase in attempted cyberattacks.
- AI and machine learning are crucial tools in new security measures.
Digital payments firms are significantly bolstering their cybersecurity measures in response to a wave of breaches impacting the financial services industry. Companies such as PhonePe, Razorpay, Cashfree, and PayU are enhancing their systems to detect and contain cyberattacks swiftly, aiming to prevent compromise of customer data and funds.
Cashfree has experienced a tenfold increase in attempted attacks recently, with attackers combining multiple vulnerabilities. The company is deploying AI for vulnerability detection and accelerated fixes, while also tightening transaction controls and access to testing environments. PhonePe is using machine learning to assess transaction risks in milliseconds and has automated mechanisms to isolate compromised connections.
This heightened vigilance follows numerous cyberattacks globally and in India, where stolen credentials have bypassed financial security checks. The urgency is underscored by the massive volume of transactions processed through platforms like UPI, which saw over 25 billion transactions in October alone.
PayU is assessing emerging threats and implementing new controls, alongside using AI for security analysis. Razorpay is increasing simulated attacks and closely monitoring unusual merchant transactions, emphasizing a proactive, 'assume-breach' approach with AI-powered security operations. The trend toward automation extends to stockbroking platforms, which are also enhancing their incident response procedures.
