How fraudsters are attacking Open Banking weaknesses

Two years ago, opportunity for the FinTech community was abound with the arrival of Open Banking. And while the initial uptake was slow to materialise, we are now finally realising the potential of an application program interface (API) integration as 2020 gets underway.

But as we celebrate the second anniversary of Open Banking, fraud is becoming a major concern for financial institutions considering partnering with start-ups and smaller FinTech firms. Criminals are seeing Open Banking as a means of gaining easy access to millions of consumers’ banking and personal information – writes Mark Taylor, fraud market expert, Featurespace.

They know that FinTechs do not necessarily have advanced fraud systems in place – a recent open banking survey of FinTechs by cyber security firm Trend Micro found the average provider has just 20 employees and no dedicated security professional. Big brands are also aware of the potential weak spots created through open banking.

 

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