changes to bank accounts Jan 2018

JustLesley

anyone else out there who is concerned about the changes to access to bank accounts due to come into force on Jan 13th 2018 - particularly the one which allows third parties to be authorised to withdraw money from accounts? My concern is that fraudsters will find this an easy route into funds especially where banks' existing checks seem to be ineffective at times and the increasing success of hackers in accessing security information.

RG2015

JustLesley wrote: »

anyone else out there who is concerned about the changes to access to bank accounts due to come into force on Jan 13th 2018 - particularly the one which allows third parties to be authorised to withdraw money from accounts? My concern is that fraudsters will find this an easy route into funds especially where banks' existing checks seem to be ineffective at times and the increasing success of hackers in accessing security information.

Where did you read that third parties can withdraw money from bank accounts?

Dobbibill

https://www.paymentsuk.org.uk/sites/default/files/PSD2%20report%20June%202016.pdf

Are you referring to this?

Section 6.1 maybe - Where the customer has given explicit consent.

JustLesley

Yes, it's related to that. What concerns me is the authorisation via a third party because that's where fraudsters can get through security checks especially when photo ID like a passport is not required. For eg one bank that has notified me about the changes says in their terms and conditions " .... you can provide us with payment instructions through a PISP...................The PISP can only ever do this with your authorisation ..........." How can the PISP be sure that it's really me giving that authorisation and how can I be sure that someone else is not able to do that without my knowledge? With all the hacking of "secure" databases and websites that happens I'm not convinced that account security is strong enough. What also worries me is that the only alternative being offered if I'm not happy with the changes to terms and conditions is to close my account. I've been informed about the changes by four financial institutions where I have accounts although not all word their new terms and conditions in the same way which suggests different interpretations of the legislation you referred me to. What are your thoughts on the impact of these changes to the security of accounts?

JustLesley

from financial institutions where I have accounts - they've sent out changes to terms and conditions which say that I can authorise third parties to withdraw money from my account - what worries me is that a third party could pretend to be me - it's so easy for fraudsters to get through security checks these days especially when databases are regularly hacked - for example Experion credit monitors/checkers had their database hacked in May and security information on thousands of their customers was exposed.

Uxb

As I've said on other threads on here
There is no point is discussing this
It is all part of an EU directive - The Payment Services Directive No 2 (PSD2)
....and we know how the EU works.

You will comply, there is no option.
There is going to be no discussion about it, there is no point in complaining, there is no point in writing to your MP, there is going to be no consultations in parliament.
The banks are required under EU law to put this into their T&C and to implement it .......and I very much doubt they are any happier than the OP is about all of this. I'd guess they are indeed busy thinking of all sorts of ways to ensure the instructions from third parties really are from the end user.

Oh yes and no, you cannot vote out the EU Commission who introduced this either. Welcome to the EU - now you know why we are leaving!

mt99

Google 'open banking' or here:

http://www.wired.co.uk/article/open-banking-psd2-regulation-banking

As far as I am aware, the APIs don't allow a third party to transfer/withdraw etc, just to see your transactions

https://www.which.co.uk/news/2017/10/open-banking-92-of-the-public-in-the-dark/

mt99

Although no bank can force you to grant them access, I can easily see the following scenarios:

1. you can't get a mortgage unless the mortgage company can 'look' at your current account and see your spending patterns (too many coffees on debit card?). I can see cash making comeback...

2. you can only switch to a new bank if the new bank can 'look' at your existing current account and see if it's the sort of business they want (eg they could easily see if it was a dummy account for switching bonus purposes etc)

JustLesley

thanks - the Which? article raises the same concerns that I have in relation to the increase in the potential for fraud - how can we be sure that any third party providers who contact us are genuine? (rhetorical question - I already know the answer - we can't!)

Redheadgolfer

Yes very concerned. This whole thing is open to fraud and I can see this being bigger than PPI. the elderly and people who are not savvy are going to get caught out. If I am reading it right this is an EU directive. I would like to know if the banks are going to seek their customers' permission to access their information. I certainly do NOT want anyone other than my bank to get hold of my information for marketing or any other reason. Really concerned about this.

Redheadgolfer

Hello, I am new to this forum. Surely if enough people object to this directive, then the powers that be have to take notice. I believe it is worth highlighting with your local MP's etc. The more people that know about this move and are against it, then it may be possible to halt it, or get it modified.