Navigating the Data Security Landscape: Challenges and Solutions in Financial Markets amid Digitalization and Artificial Intelligence

Abstract

Financial markets have the risk of data mishandling or leakage of information. Regarding consumer, privacy breach and information mismanagement affects the overall trust in the system. With faster digitalization and online usage of information, a large section of economic markets require that consumers reveal their individual information constituting a part of regulatory requirements and privacy agreements. Financial systems gather information such as identity, payment passwords, shopping choices, and other similar details that can be shared online. Financial data is prone to misuse and leakage through big data pricing discrimination and over-marketing. Furthermore, the adoption of artificial intelligence/ Machine learning (AI/ML) creates new, distinct cyber risks and expands possibilities for cyber-attacks. AI/ML systems are susceptible to new threats along with the usual cyber threats posed by human error or software malfunctions. Encroachment of personal details and disruption of law by certain organizations make it difficult for individuals to assess the challenges or problems encountered within financial markets. Therefore, the lack of systematic arrangement of the financial system results in financial losses and psychological disruption presenting as mistrust of the government’s accountability, impairment of the social balance, and erratic behavior. The present study aims to assess: 1) The scope of data security in financial markets; 2) the Challenges encountered by financial markets in maintaining data security, 3) the Role of Artificial intelligence in data breaches and Current methods (Technical and non-technical) utilized for data security.