New Jersey is at the forefront of the financial technology industry, which is one of the world's fastest-growing sectors. In addition to major players like PayPal, Fiserv, and Mastercard, over 400 fintech firms call this state home.

New dangers and difficulties have emerged alongside the growing fintech industry. Due to the nature of the data they handle, fraudsters frequently go after fintech firms. Therefore, it is crucial for fintech businesses to employ stringent safety precautions.

Performing vulnerability assessments and penetration tests (VAPT) on a regular basis is one of the most effective approaches to strengthen security. Finding and exploiting security holes in a system or network is what VAPT is all about. This method aids in finding and fixing security flaws before they may be exploited by hackers.

Due to the sensitive financial data they handle, VAPT is of paramount importance for fintech organisations. Customers of a financial technology firm could be severely impacted by a successful cyberattack on the firm.

Recent events in 2023

Crypto.com hack

The cryptocurrency exchange Crypto.com was hacked in January 2023, resulting in the theft of nearly $30 million in bitcoin. The hack was carried out by taking advantage of a flaw in Crypto.com's infrastructure that allowed attackers to take cash without authorization.

By finding and correcting the weakness in Crypto.com's system, VAPT could have helped to avert the Crypto.com hack. VAPT might have also been used to evaluate the efficacy of Crypto.com's security mechanisms, such as access controls and transaction monitoring, in preventing unauthorised withdrawals.

Breach of Robinhood data

A data leak occurred at the online brokerage Robinhood in February 2023. Over 7 million Robinhood customers' names, contact information, and Social Security numbers were compromised as a result of the incident.

By discovering and correcting security flaws in Robinhood's systems and applications, VAPT could have assisted in preventing the data breach. VAPT may have also been used to evaluate the efficacy of Robinhood's security procedures, such as access controls and data encryption, in preventing data breaches.

Ransomware attack against Coinbase

A ransomware assault hit the cryptocurrency exchange Coinbase in April 2023. The attackers wanted a $65 million ransom, which Coinbase declined to pay. Some of the stolen data, including customer email addresses and phone numbers, was then disseminated by the attackers.

By detecting and correcting the vulnerabilities exploited by the attackers, VAPT could have helped to avert the Coinbase ransomware assault. VAPT might have also been used to assess the efficacy of Coinbase's security procedures, like as firewalls and intrusion detection systems, in preventing ransomware assaults.

This incident serves as a timely reminder of VAPT's significance to the financial technology sector. Regular VAPT allows finance organisations to find security flaws before they are exploited by hackers.

When it comes to employing VAPT to safeguard fintech innovation, New Jersey is at the forefront. To aid fintech firms in implementing pen testing, the state has implemented a variety of initiatives, including:

• The NJCC announced a new partnership with the FinTechNJ industry association in March 2023. The partnership will focus on supplying fintech companies in New Jersey with cybersecurity resources and support.

• NJIT announced the opening of the Fintech Cybersecurity Centre of Excellence in May 2023. The centre will conduct research on cybersecurity threats and vulnerabilities in the finance industry and develop new mitigation strategies.

• The New Jersey Commission on Science, Innovation, and Technology (CSIT) launched a new award initiative in August 2023. Fintech companies that create or execute novel cybersecurity solutions will be eligible for up to $100,000 under the programme. The programme aims to boost the growth and competitiveness of New Jersey's fintech sector.

• And many more

Because of these efforts, New Jersey is now recognised as a national leader in the field of fintech security. The value of vulnerability assessments and Penetration Testing services in New Jersey for fintech industry cannot be overstated when it comes to protecting both clients and the companies themselves.

How Fintech Companies Can Benefit From VAPT?

For fintech firms, VAPT has numerous advantages. Among the many advantages are:

• Increased safety since VAPT aids in finding and fixing security flaws in a system or network. In this way, financial information and other critical data can be shielded from hackers.

• Many fintech organisations must perform VAPT on a regular basis in order to be in compliance with industry laws.

• VAPT provides a competitive edge for the fintech industry by allowing businesses to show their consumers and partners that they take security seriously. They may get an advantage over rival fintech firms as a result of this.

For fintech firms, VAPT is a must-have safety feature. Regular VAPT allows finance organisations to find security flaws before they are exploited by hackers. In addition to providing a competitive edge, VAPT can aid fintech firms in protecting their clients and their operations.

New Jersey is in the vanguard of states using VAPT to protect disruptive fintech developments. The state is a pioneer in fintech security thanks to its several programmes and initiatives designed to assist financial technology firms in adopting cyber security measures and awareness.