Chase Bank is going to ban third-party access to customer accounts through customer passwords according to new reports. It is an effort to tighten up security on customer accounts.
Banks like Chase are clearly beginning to realize that unfettered third-party access to customer accounts can be highly problematic. Certainly, added security can be beneficial to the customer, but this move is probably more related to how such security will help the bank in light of ever-increasing data privacy and cybersecurity regulations. In the event of a data breach through a third party, regulations like GDPR and CCPA could arguably hold the bank responsible. For this reason, banks, as well as other organizations, would be wise to examine their third-party security policies and restrict access when appropriate.
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