{"id":988,"date":"2025-12-23T08:00:00","date_gmt":"2025-12-23T08:00:00","guid":{"rendered":"https:\/\/www.invela.com\/?p=913"},"modified":"2026-02-16T10:00:49","modified_gmt":"2026-02-16T10:00:49","slug":"keeping-bad-actors-out-why-trust-defines-the-future-of-open-finance","status":"publish","type":"post","link":"https:\/\/www.invela.com\/?p=988","title":{"rendered":"Keeping Bad Actors Out: Why Trust Defines the Future of Open Finance"},"content":{"rendered":"\n

The rising risk in open banking<\/strong><\/p>\n\n\n\n

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\u2019s latest data<\/a> 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\u2019s 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.<\/p>\n\n\n\n

Why bad actors are a threat<\/strong><\/p>\n\n\n\n

Fraud isn\u2019t just a loss line \u2014 it\u2019s a trust leak. In a model built on permissioned data\u2011sharing and instant payments, trust is the currency of adoption.<\/p>\n\n\n\n

Bad actors exploit social engineering, AI\u2011enhanced deception, and gaps in third\u2011party risk oversight to bypass technical controls. Left unchecked, they slow innovation, deter consumers, and erode the credibility of open banking and open finance.<\/p>\n\n\n\n

This is why third\u2011party risk management is becoming a frontline capability for financial institutions.<\/p>\n\n\n\n

Invela: building a network that keeps bad actors out<\/strong><\/p>\n\n\n\n

Invela\u2019s network is engineered to exclude bad actors before they can erode trust -combining independent validation, continuous risk monitoring, and contractual assurance:<\/p>\n\n\n\n