The Open Banking Implementation Entity launches new tool to help firms prevent and fight fraud

• The Counter-Fraud Maturity Self-Assessment tool enables open banking firms to assess the maturity of their fraud defenses.
• Available free to all firms enrolled in the OBIE Directory
• Helps further strengthen the resilience of the open banking ecosystem

The Open Banking Implementation Entity (OBIE) has developed a new online tool to help firms gain additional insight into the maturity of their counter-fraud defences and help identify potential areas of improvement.

The tool is available exclusively to regulated and approved participants enrolled in the OBIE Directory and has been designed for both well-established firms, as well as new entrants to market. It allows ecosystem participants evaluate their ability to prevent and respond to common fraud challenges they could potentially face, including insider fraud and payment fraud.

By improving their counter-fraud mechanisms, firms can take proactive measures to protect their customers – which will help to increase confidence in emerging technologies such as open banking – while at the same working to protect themselves against reputational risk.

The tool has been developed in collaboration with experts from the OBIE Security & Fraud Working Group[1], Accenture, Cifas, the University of Portsmouth Centre for Counter Fraud Studies and the Cabinet Office Fraud, Error and Debt Team to ensure industry best practice. The assessment covers the full counter-fraud lifecycle. Key benefits include:

• A point-in-time visual snapshot of a firms’ fraud control maturity
• Identifying areas of potential risk that may not have previously been considered.
• Users can revisit and resubmit their answers to specific questions, generate updated results and track the evolving maturity of their counter-fraud defences.

While no new types of fraud have emerged since open banking was implemented, with an ecosystem comprising of almost 300 firms serving more than 2.5 million customers, maintaining the integrity of systems remains more crucial than ever.

Bronwyn Boyle, Head of Security & Counter-Fraud at the Open Banking Implementation Entity (OBIE), said:  “Security is at the heart of open banking, which allows more than 2.5 million active users each month to safely and securely use their financial data to access better deals.  As open banking adoption continues to grow and the technology becomes part of our daily lives, it is more important than ever that firms take steps to maintain the integrity of their fraud controls. The OBIE Counter-Fraud Maturity Self-Assessment tool supports the firms within our ecosystem in taking proactive, preventative steps to protect their businesses and their customers. By gaining a better awareness of their own risk profiles, firms can feel confident that they have robust counter-fraud controls in place.”

ENDS

Notes to editors:

¹The OBIE Security & Fraud Working Group is a collaboration and oversight forum that is focused on protecting the ecosystem against security and fraud threats, sharing intelligence and fostering best practice.

Spokespeople available upon request.

For enquiries, please contact: CiceroOpenBankingPR@cicero-group.com, 020 7297 5965

About the Open Banking Implementation Entity:

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver Open Banking. Its trading name is Open Banking Limited. OBIE is governed by the CMA and funded by the CMA9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, RBS Group and Santander). It works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups.

OBIE’s role is to:

• Enforce the obligations on the CMA9 under the CMA Order
• Design the specifications for the Application Programme Interfaces (APIs) that banks and building societies use to securely provide Open Banking
• Support regulated third party providers and banks and building societies to use the Open Banking standards
• Create security and messaging standards
• Manage the Open Banking Directory which allows regulated participants like banks, building societies and third-party providers to enrol in Open Banking
• Produce guidelines for participants in the Open Banking ecosystem
• Set out the process for managing disputes and complaints

[1] ¹The OBIE Security & Fraud Working Group is a collaboration and oversight forum that is focused on protecting the ecosystem against security and fraud threats, sharing intelligence and fostering best practice.