A long-undetected insider breach now highlights critical weaknesses in fintech security and highlights rising risks from internal threats.
A US fintech firm, FinWise Bank, has recently revealed that a former employee may have accessed or acquired personal data belonging to nearly 700,000 customers after leaving.
The incident, which involved data from American First Finance (AFF) — a poor-credit lender partnered with FinWise for installment loans —occurred on May 31, 2024, but had gone undetected until June 18, 2025.
The Utah-based firm has withheld specific details about the types of data involved, and neither FinWise nor AFF has issued public statements elaborating on the breach. Upon discovering the incident, FinWise had initiated an investigation with external cybersecurity experts to determine whether sensitive information had been compromised. The firm has since notified affected customers that files containing their personal information may have been accessed or acquired improperly. As a precaution, all 689,000 impacted individuals have been offered 12 months of free credit monitoring and identity theft protection.
Internal security culture lacking strategic thinking
This case is part of a broader trend of insider-driven data breaches affecting numerous organizations recently. For instance, in May this year, Coinbase disclosed that overseas support staff had accepted bribes and stolen data of nearly 70,000 customers. Similarly, a software firm Rippling was targeted when a former global payroll compliance manager allegedly accepted payment from competitor Deel in exchange for company secrets. Additionally, in the UK, more than half of cyberattacks on schools have been attributed to students, highlighting insider risks beyond corporate settings.
Notably, insider breaches are not limited to malicious acts but also include incidents such as accidental data exposure through misdirected emails, which continue to occur frequently. Experts emphasize the persistent challenges in personnel security frameworks.
As reported by The Register, Paul Martin, a distinguished fellow at the Royal United Services Institute (RUSI), had noted the field suffers from a lack of strategic thinking and operational effectiveness. He advocates for fostering an internal security culture that builds trust and suggests that data linked to insider wrongdoing, often scattered across different departments, should be consolidated under focused insider security working groups to better manage risks.
The FinWise breach underscores the importance of robust internal controls and cultural measures to counter insider threats, which remain a significant vulnerability for financial and other organizations.