Secured software development

Error or bugs exist in every code. For every 1,000 lines of code, there are on average 1 to 5 bugs found. Some of these bugs can cause security complications and these are called vulnerabilities. These are used to exploit and slow down your server and your site. This happens mainly when you use unknown software. Therefore there is a need for a secure software development process to design softwares.

Modern software includes approximately 80% of third-party components and libraries and most of them are open-source licensed. There are very few companies that could trace those components and related information such as version numbers and could potentially enable vulnerable code to enter the supply chain during the process of software development which might be exploited by frauds when the solution is delivered to consumers. 

The fintech industries are evolving at a high speed where a consumer no longer needs to visit physically to the bank to access any required service. Therefore both consumers and financial service providers are finding it difficult to keep track of such ever-changing technology prospects. The financial sectors no longer have to set a broad network of physical outlets to serve customers. With just a few clicks on the mouse or the smartphone, customers can now avail their account and carry out required transactions. From net banking, mobile banking to digital wallets, UPIs, technology has made financial service deliveries pretty easy. But along with this, we cannot forget the number of threats and risks it contains.

Development of Software and Attacks

Today, the development of all software including those of financial services entails the use of third-party components and frameworks which are basically open-source licensed. There are very few software companies that could keep track of the version numbers of those third-party components, which are used by the developers for software and application development. If there are vulnerabilities and the company lacks tracing, the third party might enter the supply chain placing the consumers at risk while using the software and could also lead to reputational damage to the organization.

For example, the Equifax breach of 2017 exposed the personal information of 147 million Americans which had a financial impact of over 4 billion dollars. In India, data related to 18 crore orders from Domino's pizza and nearly 13TB of employee and customer details has resurfaced online. The group behind the hack has made the data that included payment information public. 

Such types of attacks can be created by adding spiteful code to components used by the developers. These codes then can enter the code base for future exploitation. 

There is a huge increase in breaches that are caused by a lack of management of third-party libraries. Government and industry bodies around the globe are developing regulations to make it compulsory for software companies to embrace secure software development.

It is important for software companies to control the use of components and frameworks while developing software to build customer trust.

Software Companies and Financial Institutions

It is required for all the companies developing software and applications to execute a secure software development management process. Tracking of the third-party components is also essential. This will help only known vulnerabilities to enter the software development and prevent unknown vulnerabilities components and frameworks. 

Financial institutions must be responsible enough while buying software or commissioning a third-party organization to develop software on their behalf. These institutions should take measures to ensure that the software that is developed is safe and secure and thus protect their customers.