CYBERSECURITY IN FINTECH: PROTECTING DIGITAL BANKING IN THE ERA OF DECENTRALIZED FINANCE

Abstract

This article presents a comprehensive analysis of cybersecurity challenges and solutions in the evolving landscape of Financial Technology (FinTech) and Decentralized Finance (DeFi). The article examines the complex intersection of traditional banking security measures with emerging blockchain-based financial services, highlighting the unique security considerations that arise in decentralized ecosystems. Through an extensive investigation of current security frameworks, smart contract vulnerabilities, and cryptocurrency exchange protection mechanisms, this article identifies critical areas requiring enhanced security measures while evaluating the effectiveness of existing solutions. The article explores advanced cryptographic protocols, multi-signature authentication systems, and real-time threat detection methodologies that form the backbone of modern financial security architecture. Special attention is given to the integration challenges between legacy systems and DeFi platforms, as well as the evolving regulatory landscape that shapes security requirements in digital finance. The article emphasizes the importance of developing robust, adaptable security frameworks that can support the growing complexity of decentralized financial systems while maintaining operational efficiency and user trust. This article contributes to the existing body of knowledge by providing actionable insights for financial institutions, technology providers, and regulatory bodies, while outlining future research directions in FinTech security.