Open banking ‘will open door to hackers’

BANKING customers will be left at the mercy of “hackers and thieves” under a data sharing revolution that begins today, Britain’s biggest banks have warned.

“Open banking” rules will force financial institutions to share detailed customer data, such as salary, savings and spending patterns, with each other at the request of account holders.

The scheme was designed by competition watchdogs to help customers compare bank accounts and manage their money better by seeing all their accounts on one screen.

However, bank bosses and MPS have voiced concerns that the change could lead to a digital crime wave with more criminals stealing people’s identity, and money, than ever before.

The higher risk of data theft is expected to come from bogus companies pretending they are authorised to obtain data, as well as hacking of firms regulated by the Financial Conduct Authority, which can receive the data.

Howard Davies, the chairman of RBS, said: “We are not confident that our customers’ data will be protected from hackers and thieves [when it is shared with third parties].

“We cannot refuse to hand over data because that’s what the legislation says, but we will have to try to educate people to understand the vulnerability.”

David Crawford, head of current accounts at Natwest, which has more than seven million customers, also warned criminals could try to take advantage of the “noise and publicity around open banking”.

“With all the new companies expected to launch propositions, customers might not be aware of which are genuine and which are run by criminals, and so be at risk of giving away details or even money,” he added.