APIs: The Silent Security Risk in Fintech

A quarterly report published by integrated app and security platform Wallarm sheds light on a crucial but often overlooked security concern for fintech companies — their APIs, as stated in Fintech News. Developed from publicly available sources, these reports aim to provide detailed insights to help CISOs and cybersecurity managers assess threats and build risk models.

In an interview, Wallarm co-founder and CEO Ivan Novikov emphasized the importance of these reports in offering real-time analysis and identifying new threat groups, particularly those related to the increasing use of APIs.

One of the major issues highlighted in the report is API leaks, which accounted for over 10% of incidents. These leaks have affected companies like Netflix, open-source software providers, and enterprise software firms, highlighting the broad impact of this emerging threat.

Novikov explained that for fintechs, the use of open APIs for banking introduces specific security challenges. Institutions must track where their financial data travels, especially personally identifiable information and internal bank account information. Any compromise of this data could lead to significant fraud risks.

Regarding the security of APIs, Novikov pointed out that while banks have multiple layers of protection for passwords and login credentials, APIs often rely on a single key. This key, once compromised, can lead to unauthorized access and potential fraud. Novikov stressed the need for better solutions to address this problem.

The report also highlighted the challenge of aging infrastructure, with many bank APIs dating back several years. This aging infrastructure makes it difficult to locate and update security keys, increasing the risk of breaches.

In light of these challenges, it is crucial for financial institutions and fintech companies to ensure they can trust their partners. While banks can define standards for their data providers, fintechs must set their own standards to protect their APIs and data.

Wallarm is developing a cloud-native platform that can detect attacks in near-real-time, providing repair recommendations and remediation capabilities. This platform aims to address the increasing security threats faced by fintech companies due to API vulnerabilities.

Other articles
Listening Is the New Power Move in Financial Services
SymphonyAI Eyes Agentic Automation as the Future of AML Compliance
AI Adoption in Financial Services and Fintech in 2025: Key Trends and Use Cases
Visa Launches New Initiative to Simplify Embedded Payments for Businesses
JPMorgan Unveils AI-Powered Tool to Combat Payment Fraud in Corporate Transactions
New ‘Buy Now, Pay Later’ Rules to Benefit Big Lenders, Not Hinder Them
Cable Insurance and TruckerCloud Join Forces to Improve Commercial Auto Data Systems
In-Car Payments Becoming Must-Have Feature for Drivers, Study Finds
Digital Wallets Are Evolving — And They Want to Replace Your Apps, Not Just Your Cards
Parents Call for Financial Education as the New “Fourth R” in Schools
The Role of AI-Driven Large Transaction Models in Transforming Payment Security
How Generative AI Is Fueling the Future of Embedded Finance
How Amazon and Walmart Are Shaping Retail’s Future With Robotics and AI
ECB Collaborates with FinTechs and Banks to Shape the Future of Digital Payments
The Top 10 Automotive Industry Trends to Watch (2025–2027)