Open banking, which facilitates the secure sharing of financial data between banks and third-party providers through APIs, offers consumers increased convenience and transparency by allowing them to manage finances and compare financial products more efficiently. However, this system also introduces fraud risks, particularly through unauthorized account linking, where fraudsters exploit connections to access funds illicitly. To mitigate these risks, fintech companies are implementing security measures such as multi-factor authentication, device analysis, and consent management while educating users about potential fraud. Regulatory frameworks like the PSD2 in Europe and the Consumer Data Right in Australia support open banking by mandating secure data sharing practices, promoting competition, and protecting consumer privacy. Additionally, technical standards such as OAuth 2.0, OpenID Connect, and the Financial-grade API ensure secure communication and data protection across the open banking ecosystem. Overall, while open banking enhances financial management capabilities, it requires robust security practices to prevent fraud and maintain consumer trust.