Enfuce has chosen Konsentus’ Verify to protect its customers from unauthorized or fraudulent third parties gaining access to valuable account data and funds.
The Finnish open banking and embedded payments provider is to deploy the Konsentus Verify infrastructure regtech to enable open banking data to be exchanged securely within its own services.
The infrastructure is built upon identity and regulatory checking services, which block access to end-user account data or funds for unauthorized or fraudulent third parties.
Verify checks a third party’s identity and regulatory status each time it attempts to access a financial institution’s open banking API. The information is sourced in real-time directly from various EEA and UK databases and registers, before it was passed back to the financial institution through a single API, allowing informed risk management decisions to be made.
This integration comes after various reports have warned the fintech industry that it’s becoming the main target for account fraud. A 2022 Q2 report from Arkose Labs identifies that as many as three in four fraud attacks on fintechs during this time were account takeover (ATO) attempts, with 96 per cent of these attacks being carried out by bots.
The digital security service Sif reported that the rate of ATO attacks its network soared by 307 per cent April 2019 and June 2021, and between has recognised that these attacks are becoming more automated and sophisticated. This is in tandem with Secon‘s Andrew Gogarty predicting that ATO would become a defining feature of this year’s cyber attacks on fintech.
Identifying the provision of a PSD2 API as the company’s main focus, Niklas Apelundco-founder and CTO of Enfuce, comments that “embedding Konsentus Verify into our wider managed service offering will allow us to deliver on this promise to our customers.”
Mike WoodsCEO of Konsentus, adds to this with: “By … integrating their products into the customer experience flow without compromising on safety or speed, they are well-positioned to be at the forefront of open banking implementation across Europe.”