SECURING FINTECH AND DIGITAL PAYMENTS: IDENTIFYING THREATS, MITIGATING VULNERABILITIES, AND STRENGTHENING DEFENSES

Financial technology (FinTech) encompasses a broad range of digital solutions designed to enhance financial services through automation and accessibility. By integrating technology into banking, lending, insurance, and investments, FinTech companies streamline transactions and improve user experiences. In addition to traditional banking services, FinTech provides corporate solutions such as digital payment gateways, point-of-sale (POS) systems, and automated accounting tools. However, the rapid expansion of digital payments has also introduced significant security challenges, including identity theft, fraud, and regulatory compliance. Cybercriminals exploit vulnerabilities in online transactions, leading to financial losses and reputational damage. This study explores security risks in FinTech and the role of advanced technologies in mitigating these threats. Artificial Intelligence (AI) and Machine Learning (ML) enhance fraud detection by analyzing transaction patterns and automating real-time threat responses. Quantum cryptography and the Zero-Trust Security Model offer additional layers of security, ensuring data integrity and preventing unauthorized access. A four-layer security assessment model comprising data collection, preprocessing, presentation, and result analysis was developed to evaluate security measures. Survey findings indicate significant demographic insights into FinTech adoption. Strengthening security protocols and adhering to regulatory standards are essential for ensuring secure financial transactions and fostering trust in digital payments.