Saturday, 13 January 2018

Open Banking 'revolution' to challenge banks' dominance per BBC News

This BBC report minimises fear of fraud and it took me a while to work out why.

So these warnings appears right down the report:

'NatWest, one of the banks ordered to be ready for the new system, has warned that fraudsters could mimic these firms to trick people into giving them access to their accounts.

Such a fraud could leave consumers at risk of losing their money.

New financial service providers are also expected to be targeted by hackers, although they must prove their robustness to regulators.

Gareth Shaw, of consumer group Which?, said: "Open banking has the potential to offer consumers more control of their finances and boost choice but it also comes with potential risks around data privacy and security.

"Regulators and industry must ensure that customers are properly protected from data breaches and scams, which is vital if consumers are to use these services with confidence and trust."'

But read on and the BBC's reasoning for not criticising the 'revolution' becomes clear. Hidden away near the end of the BBC report is this:

'The changes surrounding access to financial data have been introduced as the EU's second payment services directive comes into force in the UK.'

The EU cannot be directly criticised by the BBC, and anything negative about the EU must be minimised.

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