Earlier this week, an industry report emerged analyzing the recent changes to the European Open Banking rules. The rewritten rules were intended to offer users greater control, however it looks it is possible that things might spiral out of control instead. Here’s why:
Under the new structure, approved third parties could access users’ banking data and mobile apps that contain purchase-related information. The goal is for fintech companies to help traditional banks manage their online banking platforms, and to provide new services. Unfortunately, fledgling fintech organizations often lack the security to prevent cyber crimes.
“…We expect a number of apps and feature flaws that attackers will likely observe and take advantage of as soon as apps go live,” states the report. This, of course, is the primary issue within the context of the new Open Banking rules, but other issues abound.
One expert told Infosecurity Magazine, “Another aspect of this evolving Open Banking world is the increasing complexity of proving responsibility when a fraudulent transaction occurs. The fault can potentially lie with the bank, the user, or the third-party provider; how smoothly will communication between these three parties go to resolve any such incident?”
In addition, mobile banking users will have little familiarity with the fintech companies supporting the big banking organizations. As a result, experts predict that unsuspecting individuals will be targeted with new phishing schemes.
Another question that arose from all of this: Should individuals take out their own cyber insurance policies to mitigate the effects of any potential breaches?
To get more details, check out this article from Infosecurity Magazine.