Cybercriminals are evolving their strategies as quickly as new fintech solutions launch, and often they’re one step ahead. Phishing, deepfake technology scams, and AI-enabled attacks are on the rise.
From robo-investing apps to peer-to-peer lending platforms, fintech solutions are simplifying money management for millions, but there’s a cost: an average of $4.88 million per breach, to be precise.
This environment calls for a framework that can integrate cybersecurity measures as rapidly as new threats appear – one that can deploy new regulation-aligned safety measures, boosting customer trust, and a corporation’s competitive edge.
One that is, in a word, agile.
Agile for Code Red: Rapid-Response in a Cybersecurity Crisis
The actions taken minutes after breach discovery are critical. This is where agile can really prove its chops, facilitating rapid response through swift information-sharing across departments and among organizations.
It’s the kind of urgent action cryptocurrency app Coinbase demonstrated when they blocked hacker addresses and 5,670 transfers valued at $1,294,000 within 40 minutes of the 2020 Twitter hack.
Agile methods also integrate daily standups and stakeholder involvement into workflows. When teams consistently collaborate with security experts — including law enforcement with the latest threat intelligence — they’re ready to communicate and respond during critical incidents.
Switching Engines Mid-Flight: Agile Implementation Frameworks for Ongoing Security Updates
Because new threats are constantly emerging, be prepared to implement security features at a moment’s notice. These days fraudsters are leveraging AI tools to do their deeds, and experts are calling on agile principles of continuous improvement and change management to support security transformation protecting against new AI-enabled risks.
Iteration also supports adding new threat detection features and processes to existing products. For instance, implementing security checks with each build, regular penetration testing timed with sprint cycles, or embedding scans like those GitHub uses to maintain its robust cybersecurity system.
Today, organizations are also agile in implementing advanced algorithms and AI to detect potential fraud. Mastercard applied an agile mindset in responding to the rising threat of fraudulent transactions, as hackers increasingly exploit new technologies to carry out their schemes. In February, they announced the integration of a generative AI fraud detection feature that scans one trillion data points to predict whether a transaction is genuine, analyzes account activity in real time, and can increase fraudulent transaction detection rates up to 300 percent.
Agile and Compliance Management Software for Regulation-Aligned Fintech
As threats evolve, so do fintech regulations designed to protect both corporations and customers. Using agile methods to incrementally implement compliant updates can give companies an edge in the following ways:
- Reducing the risk of legal issues and fines for companies, boosting customer confidence in fintech products, and keeping customers safe when rules are designed to protect them. For instance, PayPal implemented annual merchant self-assessment surveys to ensure alignment with compliance requirements designed to protect customer credit card data.
- Supporting companies in adapting to changing regulations without overwhelming the development process. For example, European payment app Klarna was agile in adding an authentication step to its existing product in compliance with the Second EU Payment Services Directive.
Agile RegTech integration, including the new AI compliance automation tools, can help companies stay in step with evolving rules, like The Federal Trade Commission’s recent Safeguards Rule amendment. This came into effect May 2024, and it mandates that financial institutions report unauthorized access to customer information affecting 500 or more individuals.
Agile Coaching for Meeting Ongoing Data Security Compliance Standards
These days many organizations have a dedicated cybersecurity intelligence team, or individual, that supports an agile response to threats. After a lawsuit claiming JPMorgan’s oversights made its system vulnerable to 243 fraudulent transactions and resulted in $272 million in losses, the bank was agile in implementing a 62,000-strong cybersecurity workforce. Today, executives say it repels 45 billion cyberattack attempts daily.
Another way fintech organizations are applying cybersecurity programs is through launching Security Champions programs where agile coaches help train developers in security practices; a proven method for fostering a security-aware culture.
The Future of Agile in Fintech Cybersecurity
Agile frameworks play a critical role in helping organizations adapt to both evolving risks and corresponding fintech regulations. By fostering an agile environment that is responsive to change, companies can create a proactive security culture, boost customer data protection, mitigate losses, and position fintech companies for success.
Here at Ascendle, our agile trainers and Scrum coaches bring a wealth of experience working with corporations in the healthtech, fintech, and private equity sectors. We can train your teams to respond during a cybersecurity crisis, and help them build more agile systems for continuous defense against evolving threats.
Want to find out more about how our team can support your agile cybersecurity efforts? Get in touch and we would be happy to talk about your specific challenges.
