A fundamental challenge for any fintech PR agency is how to balance the promise and peril of this moment.
It’s now easier than ever to shop, spend, and bank. This is thanks to the innovations of a thousand fintechs of all sizes, who’ve taken digital wallets, mobile money, and digital currencies from experimental ideas to scalable products.
We’re more connected than ever – which also means more vulnerable. Billions of users, many new to digital finance, are entering sensitive information into platforms. In the UK alone, 86% of adults now engage in online banking.
Cybercriminals have taken note.
Fraud is rising — with over four million cases reported annually in the UK. Millions, and by some estimates billions, of pounds have been lost to bad actors exploiting this evolving infrastructure.
Three Key Threats Facing Fintech
1. Infrastructure weaknesses
Cybercriminals exploit cracks in digital ecosystems, putting consumer data and payment security at constant risk. In the Global South — where fintechs often operate without strong regulatory frameworks — the stakes are even higher. These vulnerabilities can erode trust and undermine innovation.
2. APP Fraud
Authorised Push Payment (APP) fraud occurs when someone is tricked into transferring money to a fraudulent account. It’s one of the most common types of fraud in the UK, with 72% originating online. Older users and those with limited digital literacy are particularly vulnerable.
3. AI-Powered Deception
Generative AI allows criminals to mimic legitimate forms, emails, and documents with alarming accuracy. Gone are the days of obvious typos and stilted grammar — now the scams feel real. One estimate projects that by 2027, AI-driven fraud could cost banks £40 billion annually.
Cybersecurity and Comms: A Feedback Loop
Those are the challenges — but fintechs are far from passive. Many are working hand-in-hand with legacy institutions to crack down on both emerging and long-standing fraud methods. In just the first half of 2024, banks prevented over £700 million in unauthorised fraud thanks to robust security systems.
When done well, internal cybersecurity efforts and external communications can be mutually reinforcing. A fintech invests in frameworks and technology to manage known risks. Then the communications team tells that story — clearly and confidently — to the market.
Current and future customers can see that an institution takes security seriously. This not only builds trust, but also helps attract clients who value proactivity and resilience.
Educating the Market and Raising the Bar
There’s further opportunity in fintech thought leadership. Companies can help raise awareness of best practices — such as the growing importance of multi-factor authentication (MFA), which adds another layer of protection through device codes or security questions.
AI is also part of the solution. Financial institutions now use machine learning to flag fraudulent activity in real time. These systems grow more effective with every attempted breach.
Still, even the most advanced security systems rely on human behaviour. Digital literacy remains essential. Consumers must use strong passwords, enable enhanced security features, and pause before clicking. Education campaigns — from fintechs, PR teams, and regulators — will be key in reducing risk across the entire ecosystem.
In the end, fintech companies have a real chance to lead — not just in innovation, but in building trust. The right cybersecurity strategy, communicated clearly and consistently, doesn’t just protect users — it strengthens the entire market.
Done well, security isn’t a cost center. It’s a competitive advantage.
