Delaware News

Investor alert: protect your financial information

Department of Justice | Department of Justice Press Releases | Newsroom | Date Posted: Wednesday, May 21, 2025


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Data aggregators (which collect and organize data from multiple sources) and third-party platforms are utilized by financial professionals to put all your financial information online and in one place. This can help you and your financial professional organize and manage your finances. However, before you decide to use a data aggregator or third-party platform, it pays to know how these services operate and how to protect yourself from potential privacy and security risks.
 
When using a financial data aggregator, your “dashboard,” sometimes called a personal financial management hub or portal, can display your investments, checking accounts, savings, insurance policies and credit balances. In addition to a snapshot of your overall finances, depending on the provider, you could receive services such as financial and tax planning, financial advice, budgeting, and the ability to track home value and mortgage information. There could be fees and costs associated with some data aggregation services.
 
Many customers value the convenience of financial data aggregation and appreciate having a single snapshot of multiple accounts. However, providing access to your detailed financial information can come with some risks. These tips can help you protect yourself if you decide to share your financial information with a data aggregator or third-party platform or service providers who use data aggregators and third-party platforms:
  • Weigh the benefits of aggregation against the risks of sharing access to your accounts. This is especially true when you authorize a third party to facilitate payments, trades, or withdrawals of securities or funds on your behalf.
  • Understand whether the data aggregator’s connections to your financial institutions come from screen scraping, in which the aggregator uses your credentials to sign in to accounts and collect information, or application programming interface, which transfers data from the financial institution to the aggregator without sharing credentials, or both.
  • Read the terms and conditions of any user agreement or contract you sign. Know what rights you are granting to your financial accounts and data.
  • Verify that the aggregator or the third-party platform will only access the information it needs to provide the desired service.
  • Be aware that there might be charges for certain transactions and services you elect to use.
  • Ask what privacy and data security measures are used, and read the terms of use, privacy and security information.
  • If the aggregator or third-party platform uses scraping algorithms to collect data from your financial accounts, does it store your credentials?
  • Know whether supplemental or authorized users can withdraw funds or securities from your accounts. Be cautious of granting a power of attorney to third-party platforms. Know what powers you are granting.
  • Do your own online research and due diligence. Look up reviews, complaints, or lawsuits against the data aggregator or the third-party service provider you are considering using.
  • What type of liability, if any, does the aggregator or third-party platform bear in the event of a consumer loss due to a data breach or unauthorized access? Does the aggregator or third-party platform have the financial capacity or insurance coverage to compensate you for loss? What kind of dispute mechanism is in place to resolve any issues related to data breaches or unauthorized access? Keep in mind that if you share your log-in information with an investment adviser and suffer a loss in the account, the custodian may be able to disclaim liability.
  • Finally, make sure you cancel your account and terminate the access and rights you have granted to the aggregator or third-party platform once you discontinue using the service. Follow the steps that need to be taken to stop the ability of the aggregator or third-party platform from having ongoing access to your account(s).
The Investor Protection Unit of the Delaware Department of Justice cautions investors to carefully review the terms of any agreements with data aggregators or third-party platforms used by your financial professionals before you or your financial professional share your personal financial details. To learn more about the risks of data aggregation and ways to protect yourself and your data, click here.
 
To file a complaint, please contact the Investor Protection Unit at Investor.Protection@delaware.gov. The Investor Protection Unit also encourages investors to check the registration status of financial professionals at brokercheck.finra.org and adviserinfo.sec.gov.
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Investor alert: protect your financial information

Department of Justice | Department of Justice Press Releases | Newsroom | Date Posted: Wednesday, May 21, 2025


Navy blue background featuring the Delaware state seal in the center
Data aggregators (which collect and organize data from multiple sources) and third-party platforms are utilized by financial professionals to put all your financial information online and in one place. This can help you and your financial professional organize and manage your finances. However, before you decide to use a data aggregator or third-party platform, it pays to know how these services operate and how to protect yourself from potential privacy and security risks.
 
When using a financial data aggregator, your “dashboard,” sometimes called a personal financial management hub or portal, can display your investments, checking accounts, savings, insurance policies and credit balances. In addition to a snapshot of your overall finances, depending on the provider, you could receive services such as financial and tax planning, financial advice, budgeting, and the ability to track home value and mortgage information. There could be fees and costs associated with some data aggregation services.
 
Many customers value the convenience of financial data aggregation and appreciate having a single snapshot of multiple accounts. However, providing access to your detailed financial information can come with some risks. These tips can help you protect yourself if you decide to share your financial information with a data aggregator or third-party platform or service providers who use data aggregators and third-party platforms:
  • Weigh the benefits of aggregation against the risks of sharing access to your accounts. This is especially true when you authorize a third party to facilitate payments, trades, or withdrawals of securities or funds on your behalf.
  • Understand whether the data aggregator’s connections to your financial institutions come from screen scraping, in which the aggregator uses your credentials to sign in to accounts and collect information, or application programming interface, which transfers data from the financial institution to the aggregator without sharing credentials, or both.
  • Read the terms and conditions of any user agreement or contract you sign. Know what rights you are granting to your financial accounts and data.
  • Verify that the aggregator or the third-party platform will only access the information it needs to provide the desired service.
  • Be aware that there might be charges for certain transactions and services you elect to use.
  • Ask what privacy and data security measures are used, and read the terms of use, privacy and security information.
  • If the aggregator or third-party platform uses scraping algorithms to collect data from your financial accounts, does it store your credentials?
  • Know whether supplemental or authorized users can withdraw funds or securities from your accounts. Be cautious of granting a power of attorney to third-party platforms. Know what powers you are granting.
  • Do your own online research and due diligence. Look up reviews, complaints, or lawsuits against the data aggregator or the third-party service provider you are considering using.
  • What type of liability, if any, does the aggregator or third-party platform bear in the event of a consumer loss due to a data breach or unauthorized access? Does the aggregator or third-party platform have the financial capacity or insurance coverage to compensate you for loss? What kind of dispute mechanism is in place to resolve any issues related to data breaches or unauthorized access? Keep in mind that if you share your log-in information with an investment adviser and suffer a loss in the account, the custodian may be able to disclaim liability.
  • Finally, make sure you cancel your account and terminate the access and rights you have granted to the aggregator or third-party platform once you discontinue using the service. Follow the steps that need to be taken to stop the ability of the aggregator or third-party platform from having ongoing access to your account(s).
The Investor Protection Unit of the Delaware Department of Justice cautions investors to carefully review the terms of any agreements with data aggregators or third-party platforms used by your financial professionals before you or your financial professional share your personal financial details. To learn more about the risks of data aggregation and ways to protect yourself and your data, click here.
 
To file a complaint, please contact the Investor Protection Unit at Investor.Protection@delaware.gov. The Investor Protection Unit also encourages investors to check the registration status of financial professionals at brokercheck.finra.org and adviserinfo.sec.gov.
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Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.