API Security Best Practices for Fintech Applications
Essential security measures to protect financial APIs from unauthorized access and data breaches.
API security is paramount in fintech applications where sensitive financial data flows between systems. Robust authentication mechanisms including OAuth 2.0 and OpenID Connect ensure only authorized parties access financial APIs. Rate limiting prevents abuse and denial-of-service attacks, while input validation protects against injection attacks. Encryption in transit using TLS 1.3 safeguards data during transmission, and encryption at rest protects stored sensitive information. API gateways provide centralized security controls including threat detection, logging, and monitoring. This comprehensive guide covers security best practices including API key management, token expiration policies, and secure error handling. We examine common API vulnerabilities, penetration testing methodologies, and compliance requirements for financial APIs under regulations like PSD2 and GDPR.