Ajay Unni, cyber expert and founder of StickmanCyber, says that when downloading an app, users should read the terms of the agreement and understand how the data will be used. He says a marker of good security is if the app complies with ISO 27001 – a widely recognized international standard that dictates how digital information should be secured.
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It’s a good idea to also Google the app to see if it’s been reported by users on online forums, he says.
Christoph Hebeisen, director of Lookout, says budgeting app users can reduce risk by using a well-known and well-reviewed app that has been downloaded many times.
The company behind the Frollo budgeting app, as well as ISO 27001 accreditation, is also accredited with the Consumer Data Right (CDR) program, of which open banking is a part. Its accreditation with the CDR means that your financial information is easily and quickly accessible through the application. WeMoney is also CDR certified.
This is a federal government initiative designed to promote competition by making it easier for consumers to transfer financial products between banks, without having to fill out wads of paperwork.
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You authorize an accredited third party, such as a budgeting application, to access your accounts. The user can choose which accounts are shared and how long the data should be stored before being deleted.
Those who are accredited with the CDR must meet certain privacy and information security standards and have cyber insurance against losses due to a cyberattack, as the bank providing your data will not be liable.
Big banks, though slow to get started, are also improving their apps with more budgeting tools. Westpac purchased the MoneyBrillant budgeting app last year and integrated it into its own app to allow Westpac customers to track their expenses and monitor their monthly income and expenses.
Westpac plans to introduce features that will allow its customers to view accounts held with other banks through its app. Commonwealth Bank also intends to allow its customers to view the account balances of other financial institutions through its app.
In addition to application-specific advice, there are those that apply when accessing or sending sensitive data.
According to Lookout’s Hebeisen, users should always update their apps and keep their device’s operating system up to date. It recommends that you enable two-factor authentication, either with SMS or an authenticator app, to protect your accounts.
StickmanCyber’s Unni says to try to avoid accessing your fintech apps, or any sensitive data, over public Wi-Fi, as it can be easily compromised.
Those who want to reduce the risk to zero could instead go old school and use pen and paper to create a budget, which has been shown to provide better retention of information than using spreadsheets or a application.
- The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. Before making financial decisions, they should always seek their own professional advice that takes into account their personal circumstances.
