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New EU directive will help internet giants access your BANK ACCOUNT

AN EU directive on electronic cash transfers could end up putting your bank account under direct control of online shopping giants like Amazon and eBay, experts fear.

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New EU directive will help internet giants access your BANK ACCOUNT

The so-called “Second Payment Services Directive” (PSD II) will enable companies to offer account information services in the future.

According to Germany’s “Bild” newspaper under a directive which will enter into force from January 2018 all that is needed is a registration with the Federal Financial Supervisory Authority (BaFin).

With the PSD II software enabled companies can look at the accounts of their customers on the Internet.

The prerequisite for this, according to Bild, is that the customer agrees and provides the provider of account information services with a secret PIN.

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Online shopping giants like Amazon and eBay will have direct control of your bank account – experts

With the new EU directive, fraud and data abuse in online banking will be even easier.

Peter Mattil

With this the internet shopping firms can then access the account data of the past 90 days. Companies could find out how much their customers earn and what they spend their money on.

The purpose of the account information services is actually to provide customers with a better overview of their accounts.

According to “Bild”, privacy advocates are now worried that Internet giants like Amazon or Google could offer their customers account information services.

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Companies could find out how much their customers earn and what they spend their money on

This way they could get to their bank data – and could do business with it. To encourage customers to divulge their secret PIN, companies could for example offer particular discounts. Even scammers could benefit from the new directive.

Peter Mattil, Munich specialist lawyer for banking and capital markets law, said: “With the new EU directive, fraud and data abuse in online banking will be even easier.

“Customers have to be terribly careful not to give internet companies an involuntary access to their accounts.”

https://www.express.co.uk/news/world/875450/european-union-directive-internet-psd-II-amazon-ebay-online-shopping-bank-account-eu

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