A comprehensive cyber risk management strategy for Fintech’s is no longer optional — it’s one of the most critical challenges facing startups today. From $20M payout glitches to deepfake CEO scams and high-profile crypto heists, today’s threats aren’t theoretical—they’re operational, reputational, and financial disasters waiting to happen.
If you think “it won’t happen to us,” you’re exactly who it will happen to. Because in fintech, risk moves just as fast as innovation—and ignoring it isn’t just naive, it’s costly.
Real-World Examples of Fintech Failures
$20M Loss at a Leading Neobank
In 2022, Revolut—one of the world’s most prominent digital banks—suffered a major financial blow after attackers exploited a flaw in its U.S. payment system. Due to differences between U.S. and European transaction protocols, the platform mistakenly issued refunds for declined card payments. Criminal groups quickly took advantage, withdrawing erroneous refunds in cash via ATMs. The scheme went undetected until a partner bank flagged suspicious outflows. While no customer funds were affected, Revolut absorbed a net loss of $20 million—at a time when it was under regulatory scrutiny for a UK banking license. The incident highlighted the hidden costs of internal system weaknesses. (Source: The Hacker News)
Executive Impersonation in Singapore
In 2024, a shocking incident in Singapore exposed the risks of deepfake technology. A finance director was tricked during a Zoom call by fraudsters impersonating his CEO using AI. The scam was so convincing, he nearly wired US$500,000 to the attackers. Fortunately, his last-minute suspicion stopped the transfer, but not before the company launched a full-scale investigation. (Source: ChannelNewsAsia)
User Panic in the Philippines
Later that year, GCash—one of the Philippines’ most popular e-wallets—faced a major trust crisis. Users woke up to find small sums missing from their accounts. Although GCash insisted it was a “technical glitch,” panic spread across social media. The Department of Information and Communications Technology (DICT) launched an investigation, and even the Philippine Senate called for stronger fintech oversight. Regardless of the explanation, public confidence took a serious hit.
$600M Hack on a Crypto Unicorn
In 2022, Vietnam’s Sky Mavis, creator of Axie Infinity, suffered one of the largest crypto hacks in history. Attackers exploited security weaknesses and stole $600 million in digital assets. The company scrambled to patch vulnerabilities, raise emergency funds, and rebuild trust with users. The breach underscored how even the biggest fintech names can face collapse from a single cyber incident.
Collateral Damage: Reputation, Investors, and Regulators
When a founder or top executive gets hacked or impersonated, the consequences ripple far beyond IT headaches. The above cases highlight how quickly things can go wrong. Let’s break down the collateral damage that a cyber-attack on a startup leader can inflict:
1. Reputation Damage
Trust disappears fast. Customers fear their money or data isn’t safe and switch to competitors. Think GCash or Axie Infinity—once trust eroded, recovery was uphill.
2. Investor Doubts
Funding slows or stalls. Investors may demand stricter governance—or walk away entirely. Lawsuits are also on the rise as investors hold leadership accountable.
3. Regulatory Scrutiny
Authorities investigate, impose fines, or pause operations. In Southeast Asia, regulators are becoming more aggressive about fintech security lapses.
For fintech startups, a cyber incident can be fatal, driving away users, scaring off investors, and triggering regulatory crackdowns. Many focus on growth first and overlook security until it’s too late. But more startups are now waking up to the real cost of these risks—often after a close call or seeing others fail.
Why Fintech Risk Management Matters
For fintech founders, cyber resilience isn’t optional—it’s essential. Leaders themselves are high-value targets, and one compromised account can open the floodgates. Practicing basic cyber hygiene—strong passwords, 2FA, and avoiding phishing—can make a big difference. Even seasoned CEOs, like Hootsuite’s founder, have learned this the hard way.
Startups should embed security into their culture early: train employees, update systems, secure cloud infrastructure, and restrict data access. And just as important—have a crisis plan. Know who will respond, how to lock down systems, and how to communicate in a breach scenario.
Finally, insurance is your financial safety net. Even with strong defences, incidents happen. Cyber, D&O, and PI insurance can mean the difference between survival and shutdown. Demand is growing fast in Asia-Pacific for good reason—startups can’t afford to go unprotected.
How Continuum Helps Fintech’s Protect Themselves
The right protection can mean the difference between recovery and collapse after a cyberattack. At Continuum, we help fintech’s build financial resilience through insurance solutions designed for real-world risk.
| Coverage Type | What It Protects Against | Why It Matters |
| Cyber Insurance | Breach response, PR costs, forensic investigations, legal expenses, ransom payments | Minimizes damage from hacks, data breaches, and other cyber incidents |
| Directors & Officers (D&O) | Claims against leadership for mismanagement, negligence, or governance failures | Protects founders and executives from personal liability during crises |
| Professional Indemnity (PI) | Client claims of negligence due to service disruption, tech failure, or financial loss | Covers lawsuits and costs if your service causes damage to clients |
| Crime Insurance | Internal and external fraud, embezzlement, theft, or forgery | Shields your business from financial crimes that could disrupt operations |
Fintech risk management is no longer optional — it’s essential. Cyber threats can unravel your startup in a matter of hours, damaging your reputation, scaring off investors, and halting operations. Alarmingly, these threats are increasingly targeting founders and executives.
