Janardhan NThe Indian fintech industry is booming. As of 2025, it is valued at approximately $150 billion, making it the third-largest fintech ecosystem globally. But with rapid growth comes a bigger target for cybercriminals.
Take a recent example of WazirX, one of India’s top cryptocurrency exchanges. A major cybersecurity breach resulted in the theft of ₹1,960 crore in digital assets. And WazirX is not alone.
Leading players such as Paytm, PhonePe, and Razorpay have all experienced cyberattacks in recent years, highlighting the vulnerability of fintech companies.
Now the question is for you: What would happen if your fintech company became the next headline?
In 2024, India emerged as the top targeted country for cyberattacks, with fintech companies facing an average of 2,807 attacks per week. These numbers are a wake-up call for anyone operating in the sector.
In this blog, we will explore why cyber insurance is a must for fintech companies, the risks of going without it, and how it can help safeguard your business.
Mitigata: Your Cyber Insurance Partner
While you’re busy revolutionising financial services and building seamless customer experiences, cybercriminals are targeting your APIs, payment gateways, and customer data more.
Traditional cyber insurance providers treat you like just another tech company. They don’t understand that when your payment gateway goes down, it’s not just about lost revenue.
Our coverage is designed to address the specific threats that keep fintech founders awake at night: API vulnerabilities, third-party integration risks, and the cascading effects of operational disruptions.
Why Fintech Companies Choose Us?
Proven Track Record: Over 800+ organisations served across 25+ industries, with numerous fintech pioneers scaling from seed to unicorn status under our protection.
Exclusive Mitigata Console Access: Proactive threat management platform with continuous digital footprint monitoring, customisable security training, and real-time threat intelligence.
Strategic Insurance Partnerships: Collaborations with India’s top insurers ensuring comprehensive coverage and robust support through our extensive network.
Best Market Pricing: Competitive rates through our extensive insurer partnerships and deep fintech industry expertise.
Personalised Coverage: Tailored cyber insurance policies addressing your specific risks, including API vulnerabilities, payment gateway dependencies, regulatory compliance failures, and more.
24/7 Rapid Response: Expert team that understands fintech operations and works to minimise disruption during critical incidents.
Cyber insurance for fintech companies Starting only at ₹49,000/year*
Our cyber insurance empowers fintech firms with end-to-end protection, personalized solutions, and market-best pricing
Top Fintech Cybersecurity Threats in 2025
The fintech industry is experiencing rapid growth, but this also makes it an attractive target for cybercriminals. The following are the major cyber threats faced by fintech companies:
1. Ransomware Attacks
Ransomware remains a significant threat to fintech companies. With an average cost of data recovery reaching $2 million, fintech companies must ensure they have the appropriate insurance coverage to handle these incidents.
2. Phishing and Social Engineering
Phishing remains a common attack vector. By impersonating legitimate companies, attackers gain access to sensitive information and cause harm to both customers and businesses.
Every day, around 3.4 billion phishing emails are sent. Learn about these types of phishing emails and stay ahead of such scams.
3. API Vulnerabilities
As APIs become the backbone of fintech services, they also present opportunities for breaches. Hackers can exploit API vulnerabilities to gain unauthorized access to data, putting both customers and businesses at risk.
4. Insider Threats
Employees, whether negligent or malicious, can compromise an organization’s security. Protecting against insider threats is a critical aspect of a fintech company’s overall cybersecurity strategy.
5. AI-Driven Attacks
With the increasing use of artificial intelligence, cyber attackers are automating attacks and evading traditional detection methods. AI-driven threats are becoming increasingly sophisticated and more challenging to defend against.
These threats are not just theoretical; they have led to real-world breaches:
- Oracle Cloud SSO Breach: In 2025, hackers stole 6 million records from Oracle’s Single Sign-On systems. Approximately17 terabytes of sensitive location data, including information about government buildings and other sensitive locations.
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Why Cyber Insurance is Crucial for Fintech Companies?
Cyber insurance plays a vital role in mitigating the financial impact of cyber incidents. In addition to covering the costs associated with cyberattacks, a comprehensive cyber insurance policy provides protection from financial losses, legal fees, and reputational damage. Here’s how:Confused between so many insurance providers? Check out these top cyber insurance companies and their comparison in this guide
Comprehensive Coverage for Financial Protection
A comprehensive cyber insurance policy helps fintech companies navigate the aftermath of a cyberattack. This includes:- Data Restoration and Breach Notification: Ensuring that affected parties are notified and providing services like credit monitoring.
- Legal and Forensic Costs: Covering the expenses of investigating and responding to breaches.
- Reputation Management: Helping fintech companies manage the public relations fallout post-breach.
Business Continuity
Fintech businesses cannot afford prolonged downtime. Cyber insurance helps businesses recover lost profits during network outages caused by security incidents, keeping them afloat.Compliance with Regulatory Requirements
With increasing scrutiny from regulators, cyber insurance helps ensure compliance with industry regulations, such as GDPR and PCI DSS, thereby reducing the risk of costly fines.Are you counted among those 60% of GRC users who manage compliance manually? It’s high time to check these popular automated GRC tools in India
Best Practices for Cybersecurity in Fintech
To effectively manage and mitigate these risks, fintech companies need to adopt a multifaceted approach. Here are some essential strategies:1. Proactive Security Measures
Implementing robust security measures, such as encryption, multi-factor authentication (MFA), and regular security audits, is crucial for safeguarding customer data and financial systems.2. Zero Trust Architecture
Adopting a zero-trust architecture is becoming increasingly important in fintech, with micro-segmentation and continuous monitoring as critical components of a secure infrastructure.3. Vendor Risk Management
Third-party vendors can introduce additional risks to fintech companies. Managing these risks through vendor assessments and robust third-party agreements is vital to preventing breaches.4. Employee Training
Employees are often the first line of defense against cyberattacks. Training staff on recognizing phishing attempts, handling sensitive information securely, and responding to incidents is essential.How Mitigata Can Help You?
Mitigata offers more than just insurance. We are a trusted partner for fintech companies, helping you identify the cyber risks specific to your business and providing customized insurance solutions tailored to your needs. Our team has a deep understanding of the fintech sector, enabling us to design policies tailored to your company’s unique challenges.Stop cyber risk from becoming fintech’s most expensive problem
From regulatory penalties to customer data loss, we cover it all without any hidden costs.
Conclusion
As the fintech industry continues to grow, so does the complexity of cyber threats. It’s no longer a matter of if your company will face a cyberattack, but when. Investing in cyber insurance is not just a precaution; it’s a strategic asset that can help your business stay resilient in the face of evolving threats.
At Mitigata, we offer comprehensive and tailored cyber insurance solutions specifically designed for the fintech sector.
FAQs on Cyber Insurance for Fintech Brands
Q1. What does cyber insurance cover for a business?
Cyber insurance typically protects your company’s liability for a data breach, including sensitive client information like Social Security numbers, credit card numbers, account numbers, driver’s license numbers, and health records.
Q2. What is cybersecurity in Fintech?
In the digital era, cybersecurity is crucial for protecting sensitive financial data and transactions within the Fintech ecosystem. Fintech organisations, which use digital platforms to supply services and conduct transactions, have become major targets for hackers.
Q3. How can you protect your business from cyberattacks?
Make regular backups of all computers’ data. Critical data comprises word processing documents, electronic spreadsheets, databases, financial files, human resources files, and accounts receivable/payable files. Backup your data automatically, if possible, or at least regularly, and keep the copies offsite or in the cloud.
Q4. What is the protection that comes with cyber insurance?
Cyber insurance coverage reimburses an organisation for any financial damages incurred as a result of a cyberattack or data breach. It also helps them cover any costs associated with the remediation process, such as investigation, crisis communication, legal services, and customer reimbursements.
Q5. Why are fintechs a threat to banks?
Concentration of power/anticompetitive behaviour, for example, when NFCs have their own bank, they might leverage their size, customer base, and market power to undermine competition in the banking sector by subsidising their banking activities (from their non-financial businesses) in order to acquire market dominance.
This blog on cyber insurance for fintech is highly informative! It emphasizes the importance of securing essential protection against digital risks in the fintech industry.