Trend Micro Highlights Security Risks of New Open Banking Regulation

FinTech changes could open up new attacks on organizations and consumers

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HONG
KONG, CHINA - Media OutReach -
18 September 2019 - Trend Micro Incorporated (TYO: 4704; TSE: 4704),
a global leader in cybersecurity solutions, today release research
demonstrating that major new European banking rules could greatly increase the
cyberattack surface for financial services firms and their customers.

The new research details the impact of
the EU’s Revised Payment Services Directive (PSD2), which is designed to give
users greater control over their financial data and the option of sharing it
with a new breed of innovative Financial Technology (FinTech) firms. The same
ideas are spreading globally under the term “Open Banking.”

“The financial sector has always been
a highly attractive target for cybercriminals, and PSD2 and Open Banking are
set to offer hackers even more opportunities to steal sensitive personal and
financial information,” said Ed Cabrera, chief cybersecurity officer for Trend
Micro. “Our concern is that the industry may not be fully prepared to deal with
this greatly expanded attack surface. That’s why we wanted to understand the
risks before they occur, so we can help FinTechs and traditional lenders
protect their assets first.”

The report highlights several possible
attack scenarios under the new regulatory regime:

• Attacks
  on APIs: Public APIs
  are at the heart of Open Banking, allowing approved third parties to access
  users’ banking data to provide innovative new financial services.
  Implementation flaws in these APIs will allow attackers to exploit back-end
  servers to steal data.
• Attacks
  on FinTech companies:
  Users will be forced into a new trust relationship with providers that may have
  fewer resources than their banks and no track record on data protection. In a
  quick survey of Open Banking FinTechs, Trend Micro found them to have an
  average of 20 employees and no dedicated security professional. This makes them
  ideal targets for attackers and raises concerns over security gaps in their
  mobile apps, APIs, data sharing techniques and security modules that could be
  incorrectly implemented.
• Attacks
  on the apps or mobile platforms:
  Most Open Banking services will be deployed as mobile apps, making these a
  prime target for attackers. Finding the username, password, or encryption keys
  within the app would allow a criminal to retrieve banking data and pose as the
  user. Even if the apps don’t have permission to make payments, they could
  contain transaction data, allowing an attacker to build a highly accurate
  profile of their victims.
• Attacks
  against the user:
  Because new Open Banking apps will become the primary means for users to access
  financial data and services, phishing attacks could reap major rewards for
  attackers.

To prepare for the changing landscape,
Trend Micro details how financial institutions can improve their cyber
resilience. These include ensuring sensitive information is never contained in
URL paths, prioritizing secure protocols, and eliminating risky practices.

Meanwhile, Open Banking app developers
and owners must adopt a secure-by-design approach, including regular software
audits.

To find out
more about the cyberrisks associated with new Open Banking rules, read our
report, Ready or Not for PSD2: The Risks of Open Banking, here: https://www.trendmicro.com/vinfo/hk/security/news/cybercrime-and-digital-threats/the-risks-of-open-banking-are-banks-and-their-customers-ready-for-psd2.

About Trend Micro

Trend
Micro Incorporated, a global leader in cybersecurity solutions, helps to make
the world safe for exchanging digital information. Our innovative solutions for
consumers, businesses, and governments provide layered security for data
centers, cloud environments, networks, and endpoints. All our products work
together to seamlessly share threat intelligence and provide a connected threat
defense with centralized visibility and control, enabling better, faster
protection. With more than 6,000 employees in over 50 countries and the world’s
most advanced global threat intelligence, Trend Micro enables organizations to
secure their journey to the cloud. For
more information, visit www.trendmicro.com.hk.