OFDSS
The Open Finance Data Security Standard (OFDSS) provides a security framework for fintech companies, financial institutions, and third-party providers to ensure secure data sharing and financial transaction protection.
Scope and Applicability.
OFDSS applies to financial institutions, fintech companies, open banking providers, and third-party service providers handling financial data and digital transactions. It ensures security in API-based data sharing, payment processing, and digital identity management.
Key Requirements.
Data Encryption & Secure APIs – Implements strong encryption and secure API authentication for financial data exchanges.
Access Control & Identity Management – Requires multi-factor authentication (MFA) and role-based access control (RBAC).
Fraud Detection & Anomaly Monitoring – Mandates real-time transaction monitoring and fraud detection systems.
Third-Party Risk Management – Establishes security guidelines for third-party service providers and cloud environments.
Compliance with Financial Regulations – Aligns with GLBA, PCI DSS, ISO 27001, and GDPR.
Enforcement and Penalties.
OFDSS is an industry-driven standard, but financial institutions and regulators increasingly require compliance.
Failure to comply can lead to increased cyber risks, fraud incidents, and reputational damage.
Non-compliance with related financial security regulations may result in legal actions and regulatory fines.
Main Challenges.
Financial institutions and fintech firms face challenges in securing real-time financial data sharing across multiple platforms and third-party integrations. Ensuring consistent security policies and compliance across digital ecosystems is a complex task.
Blue INK Security provides OFDSS security assessments, API security implementation, and financial data protection strategies to help organizations safeguard open finance transactions, mitigate fraud risks, and achieve compliance.