When PayPal’s fraud filters failed, €10 billion in unauthorized debits flooded European banks, revealing a harsh reality: third-party data recipient risk isn’t theoretical, but systemic. In open finance ecosystems, where openness is the operating principle, a single weak link can trigger continent-wide contagion. Banks bear the liability, customers lose trust, and innovation stalls.

The PayPal breach wasn’t just a glitch – it was a governance failure. It demonstrated how opaque, unmonitored actions by third-party providers can bypass safeguards and blindside even the most regulated institutions. And with thousands of unregulated providers operating legally beyond the perimeter, the risk is only growing.

Invela: Containing contagion before it spreads

Invela identifies and neutralizes third-party data recipients threats before they metastasize. Its three lines of defence – accreditation, behavioral risk scoring, and parametric insurance – turn blind exposure into proactive containment. When a provider’s behaviour deviates, Invela triggers real-time alerts, enabling banks and aggregators to revoke access instantly. Risk is scored, monitored, and insured. Contagion is isolated. Trust is restored.

If you’re concerned about third-party data recipient risks in the open finance landscape and want to learn how Invela can help safeguard your operations, don’t hesitate to reach out! Our team is ready to provide you with the information and support you need. Contact us today to discuss how we can help protect your institution and restore trust in the financial services ecosystem.