The Hidden Threat to Fintech: Lessons from Retail Cyberattacks

Fintech has transformed how we manage our money — from instant payments and digital lending to AI-powered investments and app-based banking. But for all its innovation and agility, the industry faces a growing, invisible threat: cyberattacks.

Recent incidents targeting high street retailers have reminded us just how real and disruptive this threat can be. While headlines focused on household names like M&S, Co-op and Harrods, the implications extend far beyond retail. These weren’t technical glitches — they were deliberate, targeted attacks that disrupted services, exposed data, and damaged customer trust. In fintech, trust is more than a brand asset — it’s the foundation of customer relationships and regulatory compliance.

In the case of M&S, YouGov data reported by Retail Week showed a six-percentage point drop in customer trust after the breach. For a brand built on reliability, that’s a significant impact. In financial services, where confidence underpins everything from user adoption to investor interest, the consequences of a similar breach would be even more serious.

Yet the human cost of these incidents often goes unreported.

A colleague of mine had ordered a tailored suit from M&S for a family event. Paid, confirmed, ready to collect. Then the breach happened — and with it, radio silence. No tracking, no updates, no delivery. What followed was a last-minute scramble for a replacement. Stressful. Expensive. Entirely avoidable.
That’s what cybercrime does. It doesn’t just corrupt data — it disrupts lives. And in fintech, where services are often fully digital, the consequences can be immediate and widespread. If a user can’t access their account, transfer funds, or get timely support, the impact is felt quickly — both operationally and reputationally.

After more than two decades in digital infrastructure, one pattern is clear: many people treat cyber security as someone else’s problem — until it becomes their crisis. These recent attacks highlight just how thin the line is between business as usual and serious disruption. I often hear from startups and scaleups: “Why would anyone target us?” The reality is that attackers don’t always need a reason. Often, they’re opportunists. And in fintech, opportunities can be plentiful: misconfigured cloud settings, reused passwords, overly permissive integrations, or simply a well-crafted phishing email.
And the fallout extends well beyond IT. Fintech companies face FCA reporting obligations, potential fines, reputational damage, and — most importantly — loss of customer trust. In an industry where “secure by design” isn’t just best practice but a customer expectation, the margin for error is slim.

The good news? Most successful attacks exploit basic oversights.

Are your systems patched? Is multi-factor authentication enabled? Are backups stored securely and tested regularly? Does your team know how to recognise a phishing attempt — and what to do if they receive one?

These aren’t complex or costly enterprise solutions. They’re simple, practical steps: building habits, encouraging open conversations, and fostering a culture of security awareness. Even small actions contribute to greater resilience.

No system is invulnerable. But awareness makes a difference. And small, consistent actions can help establish a stronger, more secure foundation.
In a sector where trust, uptime, and compliance are everything, the best defence isn’t fear — it’s preparation.