How Apple’s Encryption can Cause a Possible Problem for Fintech

Fintech is still at its roots with the startup industry directly relating to the sensitive subject of money but will it be at risk if public trust in security is shaken?

Since the FBI demanded that Apple creates a new iOS backdoor that would facilitate the access into an iPhone used in the case of San Bernardino shooter Syer Farook, a debate has started over the evolution of security which has been raging between privacy advocates and those who believe authorities should have the right to look wherever the law allows them.

Facebook and Google are already backing up Apple’s fight against FBI. Meanwhile, the startup community has largely sat on the sidelines, trying not to be crushed in this battle. We can’t possibly know how this case sorts out for them, however. It may come to affect many younger startups that relate directly to money since public trust is a really important aspect when handling this subject.

Security expert Nimrod Lehavi, co-founder and CEO at the BitCoin fraud and security startup Simplex, says that Apple’s case against the FBI seems like a publicity stunt. He points to the fact that the big tech companies, including Apple, have cooperated for years with the government. This point he says was driven home with the release of stolen documents by former NSA contractor Edward Snowden.