Generative AI, Cloud, and API Developments Have Influenced 2023 Cybersecurity Trends

In the midst of economic turbulence, businesses are adapting to counteract rising inflation, interest rates, and the ever-expanding array of cyber threats. This month, The Fintech Times delves into the strategies companies are employing to remain resilient in the face of various factors, some within their control, and others beyond.

Francis Bignell’s comprehensive analysis brings insights from industry leaders about the prevailing cybersecurity trends in 2023. Key players in the fintech space, including Nexpay, Unqork, Kasada, and Credolab, offer their perspectives on the evolving landscape. Additionally, voices from Securiti, Sensedia, Finaro, DataVisor, and SoftServe contribute to the discourse, revealing the multi-dimensional nature of contemporary cybersecurity challenges.

Securiti’s Senior Director of Data Governance, Jocelyn Houle, underlines the significance of understanding the location of sensitive data as fintechs experience a surge in cyberattacks. The convergence of Generative AI and cyber warfare looms large, both as prominent trends. Fintechs are leveraging AI to detect fraud, manage risk, and enhance customer service. Unfortunately, cybercriminals are also harnessing AI’s power to launch innovative attacks on fintechs and their customers. A focal point of concern is the escalating threat of cyber warfare and Data Security Posture Management (DSPM). The increasing targeting of fintechs by nation-state actors demands a comprehensive comprehension of data risks, including sensitive data locations, and swift breach response mechanisms.

Sensedia’s Head of US Solutions, Felipe Torqueto, underscores how APIs have become the primary gateway for cyberattacks. He outlines four key trends in API security, including heightened authentication methods, expanded encryption coverage for data in transit and at rest, advanced AI-driven threat detection, and the implementation of rate limiting and throttling techniques. Torqueto also highlights the growing importance of adopting API security standards, particularly in the context of the expanding use of Security-as-a-Service (SECaaS).

Moshe Selfin, Chief Operations and Technology Officer at Finaro, sheds light on three prominent trends witnessed in 2023. AI’s role extends to advanced risk management, fortified customer data protection, and the adoption of Quantum-Resistant Cryptography to counter the looming threat of quantum computing.

Fang Yu, Co-founder and Chief Product Officer at DataVisor, emphasizes the urgent need for integrated collaboration between fraud prevention and cybersecurity. Yu emphasizes that the siloed approach between these two disciplines is no longer tenable in today’s hyper-connected and high-threat environment. Holistic analysis and continuous monitoring of customer transactions are essential for a comprehensive defense strategy.

Antonina Skrypnyk, Director Digital Business Solutions at SoftServe, points to the significant fines organizations are facing due to inadequate consumer data protection. As the financial services sector navigates the advent of Generative AI, geopolitical threats, and complex cloud environments, the focus shifts to building responsive ecosystems and restructuring approaches. With a remarkable €1.6 billion in GDPR fines within the first five months of 2023 alone, ensuring robust data protection practices remains paramount for businesses.

As 2023 unfolds, the interplay of Generative AI, cloud advancements, and evolving API landscape reshapes the cybersecurity narrative. The proactive measures taken today will determine an organization’s ability to adapt and thrive in an increasingly complex digital landscape.

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