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Banks warn of increasing cybercrime risk under open banking

Banks warn of increasing cybercrime risk under open banking

(23 January 2019 – Australia) Australia’s major banks believe Treasury is underestimating the risk of cybercrime under the Open Banking regime.

In a submission responding to Treasury’s draft “privacy impact assessment”, the Australian Banking Association suggests that by assessing various risks as “unlikely”, the government is downplaying the dangers that open banking will introduce to the economy.

The bank’s have warned that email scams (known as "phishing") to steal banking credentials, and malicious attacks to access data and digital identities, will become more common under "open banking" — the first industry application of the consumer data right.

The banks want the government's pilot, due to kick off in July, to critically assess the privacy risks and have called for additional safeguards to be implemented if shortcomings are found.

The government is aware the regime will increase data security risks as bank data — which historically is strenuously protected by banks — flows to outsiders and is putting in place stronger levels of privacy protection.

Despite reassurances from Treasury the banks want stronger identity and access management controls on data recipients and for the rules, which are being finalised by the ACCC, to include information security standards.

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