Possible security deficiencies in the identification of new customers at the online bank N26 have called the financial supervision BaFin on the plan. "We have knowledge that the photo-identification procedure is being used, and we are following in. This procedure does not meet the local requirements for the identification of new customers," said a BaFin spokesman.
The "Wirtschaftswoche" had reported on tests that had managed to open with fake IDs an account at N26. Important security features of an ID card can not be checked in the Photo ID procedure. For this reason, bank customers in Germany have to present their identity card either at the bank or post office counter or hold it in a video chat. This is to prevent criminals from opening accounts on false names and misusing them for money laundering.
"Security is a top priority for N26, which is why we attach great importance to secure identification procedures for customer registration," said a spokeswoman for the direct bank headquartered in Berlin.
According to previous findings, there is no increased number of cases of fraud in the photo-identification procedure. "After identity verification, we conduct ongoing transaction monitoring and numerous other safeguards to prevent money laundering and terrorist financing."
N26 claims to have 1.5 million customers in 18 European countries.