Abstract

The blistering development of financial technology (Fintech) has transformed the financial services of the globe since it makes transactions quicker, more accessible than ever before, and digital in nature. Such expansion has also posed thorny cybersecurity challenges that have compromised the privacy of data and consumer trust. The more financial system is built on cloud computing and mobile platforms, artificial intelligence, as well as blockchain technologies, the more vulnerable cyberattacks, data breaches, and identity theft, are. This article explains the dynamic characteristics of cybersecurity threats in Fintech, and how the data privacy issue is associated with regulatory compliance, technological innovation, and consumer protection. The study identifies the top threats, including phishing, ransomware, insider attacks, and vulnerabilities to third-party integration. It also discusses how regulatory frameworks, such as general data protection regulation (GDPR), payment services directive (PSD2) and emerging national policies can help in establishing data security standards. Further, the paper concentrates on the necessity of incorporating the current defense controls such as encryption, biometric authentication, secure APIs, and real-time anomaly-detection as a measure of resiliency to cyber threats. The research merges the information of both technical and policy scopes, and in the process, places emphasis on the fact that building trust in digital financial ecosystems extends beyond technical security; it also involves enacting an active governance, user awareness, and collaboration among the sector. Lastly, the evidence reveals that the need to grant data privacy in a digital economy is not to be regarded only as a regulatory requirement but also as a strategic reaction to the survival of Fintech and its capacity to maintain consumer confidence.