Securing Digital Finance: A Legal Analysis Of Cyber Risks And Data Protection In The Fintech Era
- IJLLR Journal
- 4 days ago
- 2 min read
Dr. Subhashini A, Assistant Professor in Government Law College, Theni
ABSTRACT
The rapid rise of Financial Technology (FinTech) has reshaped modern financial services by enabling faster transactions, wider accessibility, and innovative digital tools. Yet, this technological progress has brought significant concerns related to cybersecurity and personal data protection. As FinTech systems depend on large volumes of sensitive information— including financial records, biometrics, and behavioural data—the risks of hacking, unauthorized access, and large-scale data misuse have increased substantially. These vulnerabilities highlight the urgent need for a strong and adaptive legal framework capable of safeguarding digital consumers in an environment where technology evolves faster than conventional regulation. The legal and regulatory challenges posed by cybersecurity threats and data privacy issues in the FinTech ecosystem. It explores how global and national legal regimes attempt to manage these risks, drawing attention to key regulatory models such as the European Union’s GDPR and PSD2, the United States’ CCPA framework, and India’s legislative developments under the Information Technology Act, 2000 and the Digital Personal Data Protection Act, 2023. The paper also emphasises the growing importance of ethical standards, particularly in areas like algorithmic fairness, transparency in automated processes, and informed consent in digital financial transactions. By analysing legal gaps, regulatory inconsistencies, and emerging best practices, the research underscores the need for harmonised data governance, cross-border regulatory cooperation, and robust institutional enforcement. It argues that a balanced approach combining technological safeguards, clear legal obligations, and ethical accountability is essential to maintain trust, security, and fairness in digital finance. Ultimately, the study aims to contribute to the development of a secure, transparent, and rights-oriented FinTech landscape that protects consumers while encouraging responsible innovation.
Keywords: FinTech Security, Data Protection, Cyber Law, Digital Consumer Rights, Regulatory Frameworks.
