DATA PRIVACY AND DATA SECURITY CHALLENGES IN DIGITAL FINANCE

Michael Aderemi Adegbite

doi:10.29121/digisecforensics.v2.i1.2025.40

Authors

Michael Aderemi Adegbite Independent Researcher, Virginia, USA

DOI:

https://doi.org/10.29121/digisecforensics.v2.i1.2025.40

Keywords:

Digital Finance, Data Privacy, Data Security, Cybersecurity, Fintech, Regulatory Compliance

Abstract

The rapid growth of digital finance has revolutionized financial services, offering increased accessibility and efficiency. However, it also poses significant challenges related to data privacy and data security. As financial institutions and fintech platforms handle vast amounts of sensitive customer information, ensuring the confidentiality, integrity, and availability of data becomes paramount. This paper explores the primary challenges in maintaining data privacy and security within digital finance, focusing on emerging threats such as cyberattacks, data breaches, and regulatory non-compliance. It discusses the complexities of protecting personal and financial data while complying with evolving global regulations like the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS). Additionally, the paper addresses the risks posed by third-party service providers and the growing use of artificial intelligence (AI) and blockchain technology in financial ecosystems. The study emphasizes the need for robust encryption methods, multi-factor authentication, and continuous monitoring systems to mitigate potential vulnerabilities. Furthermore, it highlights the importance of fostering a privacy-centric culture through employee training and consumer awareness initiatives. By analyzing real-world case studies, the paper identifies best practices and innovative solutions to enhance data privacy and security. It concludes by proposing a comprehensive framework that integrates advanced cybersecurity technologies and regulatory compliance strategies to safeguard digital financial ecosystems.

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