The financial environment, thanks to fintech, is driving service digitization with increasing force. Given the consequences of a data or system breach, cybersecurity is one of the sector’s primary concerns.

In accordance with the foregoing, the Bank of Mexico defines three types of cyber-attack damage:

1. Disruptions in system and service availability.

2. The impact on the integrity, availability, and confidentiality of the institutions’ data, including sensitive information about their clients.

3. Financial losses for both the institution and its customers.
As a result, it is critical that financial institutions improve cybersecurity around processes such as loan applications, where accurate data about the client is required to avoid default scenarios.

As a result, it is critical that financial institutions improve cybersecurity around processes such as loan applications, where accurate data about the client is required to avoid default scenarios.

Security threats in the granting of credit and other digital financial services

Following the pandemic, the financial sector, like many others, was forced to accelerate its digital transformation processes, which brought significant benefits but also a slew of new challenges, primarily related to cybersecurity.

Ransomware and identity theft are two of the most concerning threats, according to data from the 2022 KPMG Fraud Outlook survey. Concerning the latter, the National Commission for the Protection and Defense of Users of Financial Services (Condusef) reports that 52 financial institutions have been subjected to this type of attempted violation.

Because this information is used in a variety of transactions, including procedures for granting credit and managing other financial products, the banking sector must strengthen data verification security.

Cyber ​​security in the financial sector: risk mitigation strategies

To avoid fraud and other cyber risks to which financial institutions are vulnerable, consider strategies such as:

• Having incident response teams trained to identify and respond to potential cyberattacks, with the capability of recovering and safeguarding data in the event of an incident.

• Implementation of preventive measures to detect ransomware threats early.

• Incorporation of automation and analytical mechanisms that allow customers’ identities to be verified in the various processes carried out by banking entities, with the goal of preventing impersonation.

• The adoption of technological solutions for system monitoring and the promotion of a cybersecurity culture that includes both workers and managers.

What role does a credit risk API play in financial sector digital security?

Because of the fintech ecosystem, financial institutions now have solutions for reinforcing operational flows, strengthening cyber security, and avoiding incidents such as identity theft fraud.

One of them is CRiskCo’s API, which represents a significant advance in the prevention of this type of crime and is critical to improving credit-granting security.

This is made possible by an interface that allows you to access the applicant’s data managed by their accounting systems or government tax services, allowing financial and credit entities to anticipate potential fraud and non-payment situations.

With the help of this system, you will be able to evaluate credit risk in minutes, analyze the profiles of your clients or prospects, and make decisions that ensure the security of your company.

CRiskCo and its API is the tool that financial institutions require to improve the integrity of their credit management operations.