NBFC mobile applications are being targeted. And most companies still have a long way to go on security.

I have been doing this long enough — my first job was a network admin in ‘93; I was doing PSTN mux configs back when voice had to share time with data and I even survived the godforsaken Slammer worm. Flash forward to today, and I own my own security firm, assisting enterprises (including three major banks last quarter alone) transition to zero-trust security frameworks.

I just returned from DefCon last week, riding high on discussing the hardware hacking village — but today, let’s hone in on something that impacts almost every NBFC with a mobile app — vulnerabilities.

• Most NBFC mobile apps are not built with security in consideration—devs are mainly focused on features, but not security.
• Vulnerabilities in APIs (misconfigurations, weak authentication, insecure storage, etc.) are used by attackers.
• Breaches are very real — fraud, credential theft, and data exposure.
• Addressing these problems begins with secure coding and regular security audits.

Now, let’s dig in.

Remember when banks had websites (only)? Simpler times. Now, as NBFCs are completely dependent on mobile apps, the attack surface has increased exponentially. And attackers? They’re digging in deep.

1. Broken Authentication

Weak passwords, no 2FA, poor session management—so many NBFC apps just log you in and pray for the best. I’ve encountered login systems that don’t even validate failed attempts.

2. Hardcoded API Keys

If I had a dollar for every app that contained hardcoded credentials in its APK I’d buy another espresso machine. The attackers aren’t even trying — they decompile the app, steal the API keys and are done within minutes.

3. Insecure Data Storage

NBFCs store far too much sensitive data in an unencrypted form. File systems, SQLite databases, shared preferences — I’ve seen unprotected customer data sitting on app storage like a grocery list.

4. API Misconfigurations

Oh boy, APIs. All NBFCs want to be “API-first”, but forget that good or bad API security = open doors for attackers. Common issues:

• Endpoints without authentication exposed
• Inadequate authorization checks — hackers able to invoke APIs they shouldn’t be able to access
• Input not validated — SQL injection, old friend

5. Reverse Engineering & Code Tampering

Your app is a read book if it is not obfuscated. Attackers reverse-engineer target apps, modify and repackage them, inserting malware, new functionality (to facilitate unwanted transactions, maybe?, or simply refuse to do security checks at all.

You still believe NBFCs aren’t getting hurt? Now, let’s turn to the cases I’ve seen myself. (Names withheld for well-known reasons.)

Event 1: Insufficient authentication → Account Takeover

A firm processing thousands of digital loans lacked brute-force protection. Attackers executed credential stuffing scripts, compromised hundreds of accounts, and proceeded to effectuate fraudulent transactions.

Case No. 2: APIs abuse → Data leaked

A loan case for an individual was thus formed through scraping and parsing. Why? Due to their devs failing to build in authentication—attackers scraped tens of thousands of records before anybody noticed.

Event 3: Reverse engineer app → Fraudulent transactions

One was an NBFC whose mobile app didn’t validate transactions on the backend — only in the mobile UI. Hackers had actually been able to modify the app to not ask for a real authentication, and approve the transactions! (I still don’t believe this was 2023.)

1. Enforce Strong Authentication

• 2FA is not negotiable.
• Restrict the number of login attempts so that brute-force attacks are unsuccessful.
• Session timeouts – set reasonable limits.
• Wherever possible, use device binding.

2. Secure API Interactions

APIs represent how most attackers enter. Lock them down:

• Protect against insecure direct object references (IDOR).
• Verify token expiration & no revocation policy.
• Always validate user permissions on the server-side.

3. Encrypt ALL Sensitive Data

NEVER store sensitive data in the clear on your mobile app. Encrypt it:

• At rest (AES-256, minimum).
• In transit (TLS 1.2+ only).
• Never store plain passwords — secure (bcrypt, PBKDF2).

4. Obfuscate the Code to Prevent Reverse Engineering

Obfuscate. Period. Use tools to make decompilation more difficult:

• Android apps: ProGuard/R8
• Authentication of the code to detect tampering.
• Turn on certificate pinning so an attacker can’t sniff traffic.

1. Conduct Regular Security Audits

Get professionals to do penetrative testing. I do it for clients all the time — you’d be surprised what we uncover. Education is important, but it shouldn’t come after the breach.

2. Protect The Development Life-Cycle

Unwittingly, developers add vulnerabilities. Fix it by implementing:

• Guidelines for secure coding (OWASP Mobile Top 10 is a good starting point).
• CI/CD pipeline automated security scans.
• Static and dynamic tooling to detect bugs early.

3. Educate Your Team

Your whole organization needs to be aware of cyber threats; security isn’t just an IT problem. Phishing, misconfigurations, social engineering — employees are your weakest link.

I get it — there’s no excuse for people skimping on security in financial apps. If you run an NBFC mobile platform, you’re a target for attackers—period.

You are on the hook to protect customer data, transactions, and to uphold trust. Stop thinking just features in your app — make security a first-class citizen from Day 1.

Because once it’s hacked — it’s too late.