The rising risk in open banking

Open banking is scaling fast in the UK, with more than 15 million people and businesses using services built on its rails. Payments are the main growth engine, but fraudsters are adapting just as quickly. Open Banking Limited’s latest data shows authorised push payment (APP) scams now account for roughly 74% of open banking fraud, driven by social engineering that persuades customers to push funds to criminals. While open banking’s fraud rate remains at around 1/3 of the wider industry averages, the uptick in APP scams is a clear warning: growth without vigilance equals vulnerability.

Why bad actors are a threat

Fraud isn’t just a loss line — it’s a trust leak. In a model built on permissioned data‑sharing and instant payments, trust is the currency of adoption.

Bad actors exploit social engineering, AI‑enhanced deception, and gaps in third‑party risk oversight to bypass technical controls. Left unchecked, they slow innovation, deter consumers, and erode the credibility of open banking and open finance.

This is why third‑party risk management is becoming a frontline capability for financial institutions.

Invela: building a network that keeps bad actors out

Invela’s network is engineered to exclude bad actors before they can erode trust -combining independent validation, continuous risk monitoring, and contractual assurance:

• Invela Accreditation – purpose-built framework for vetting third‑party provider risk, embedding validated assessments performed by S&P Global to ensure only trusted, verified organisations gain access to the Invela Network.
• Invela Risk Indicator – continuous, dynamic, near real‑time scoring and monitoring of account‑accessing organisations to detect risk signals early and manage risk proactively.
• Invela Warranty – our promise to materially reduce the risk in interactions between account providers and data recipients – turning assurance into a tangible safeguard.

Joining Invela means confidence at scale

Open banking, open finance, and smart data – will only thrive if trust is protected. Invela ensures participants aren’t just in an ecosystem – they’re in a secure, accredited, and resilient network built for the future.