PSD2's API Wave Will Pump Up the Security Risk

September 13, 2017 Distil Networks

Banks are digitizing at a rapid pace to catch up with upstart fintech providers. Such rapid evolution can run the risk of introducing vulnerabilities, and the financial services industry is no different.

PSD2, the second iteration of the European Union’s Payment Service Directive, is scheduled to go into effect in January.

The directive is designed to create a level playing field for banks and nonbank financial services providers (fintechs) in the European Union by enabling third-party payment service providers to access customers’ account information. This in turn will enable those payment service providers to initiate payments through accounts at another payment service provider.

All of this requires the widespread use of open APIs to facilitate cross-access to account information. It’s great news for end users, but a potential nightmare for information security.

The banking industry is already heavily involved in API development to facilitate mobile banking, but opening up internal customer data directly to third parties introduces a whole other layer of potential vulnerabilities.

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Distil Networks, the global leader in bot detection and mitigation, is the first easy and accurate way to identify and police malicious website traffic, blocking 99.9% of bad bots without impacting legitimate users. Distil protects against web scraping, competitive data mining, account hijacking, form spam and click fraud while slashing the high tax that bots place on your internal teams and web infrastructure.

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