Open-banking application programming interfaces (APIs) enable financial institutions and Fintech companies to share data such as account and transaction details. However, there are concerns over the security of information handled through them.
APIs connect apps, systems, and information, and permit developers to leverage digital assets for innovative goals. As open APIs and banking platforms continue to evolve, banks and credit unions have an opportunity to become the financial services resource that allows account holders to engage in personalized interactions through their preferred automated channel.
However, APIs are also rapidly developing into one of the most common cybercriminal attack routes, leading to data breaches across industries that cost companies time, money, reputation, and customers. In an August 2019 research report, Gartner emphasized attacks and data breaches involving poorly secured APIs now occur more frequently. Broken, unprotected, or hacked APIs are among the listed causes of some major data breaches. They expose sensitive financial, transactional and other personal data. Despite these alarms, opportunities remain for hackers and fraudsters.
Financial information, in particular, is extremely valuable if it is open to third party developers and presents some challenges and real concerns for the financial institution unlocking information via an API. Some of the API security problems against financial services involve SQL injection, local file inclusion, cross-site scripting, authentication parameters in URLs; outdated protocols aiding third-party server attacks; and permitting unsecured APIs to hijack mobile apps.
NXTsoft, which provides secure data-centric solutions, allows APIs to connect FinTech solutions seamlessly and securely to financial institutions incorporating cybersecurity technology around the connectivity solutions.