The biggest shake-up to banking and payments in a decade, PSD2 offers third parties unrivalled opportunity to access user-permissioned financial data. It spells a shift, along with GDPR, in how we view data as more and more industries leap into the embrace of the digital.
They also leap into the open arms of fraudsters who have made the digital realm their home for some time now. Open Banking leaves fraudsters rubbing their hands gleefully at the prospect of seamless app usage, streamlined security and a whole host of hackable payment options; hack a computer for passwords, rather than skim the credit card at the ATM.
It’s not as if the legislators haven’t considered the fresh security challenges. Strong Customer Authentication (SCA) is one such PSD2 initiative to strengthen the defences of the verification gateway to accounts and payments. Organisations that take a proactive approach and actively drive fraud down can bypass SCA on certain transaction amounts to provide a more seamless customer experience.
As more third party providers join the payments party, it also spells a greater headache for internal fraud teams at banks. Increased market competition with incoming third parties as well as real-time, faster payments, lead to the double whammy of needing to monitor more traffic in less time.
Fear not, the technology is here, along with a new eBook from Feedzai to take you step-by-step through PSD2.
Click the link to download your copy of Feedzai’s whitepaper, How PSD2 changes the way you fight fraud: a guide for banks.