Raise uses Plaid to securely link your bank account in order to set up your direct deposit. Plaid does not sell user data to any third parties.
Plaid emphasizes strong privacy and security measures to protect user data – here are the measures they take to protect your information:
- User Control: Users control the data sharing through the Plaid Portal, where they can manage which apps have access to their financial data and disconnect them if needed.
- Data Encryption: Plaid uses advanced encryption standards (AES-256) and Transport Layer Security (TLS) to protect data during transmission (Support My Plaid).
- Privacy Policy: Plaid’s privacy policy ensures that user data is not sold to third parties and is shared only with the user’s permission (Plaid End User Privacy Policy).
We understand that there may be concerns about Raise’s use of Plaid for collecting banking information, especially given the news about their settlement in 2022. Please rest assured that your data security is of the utmost importance to us, and we’ve taken significant steps to ensure the safety and privacy of your personal information.
Background on Plaid’s Settlement:
In 2022, Plaid reached a $58 million settlement to resolve claims regarding its practices around consumer data usage. Importantly, it’s worth noting that the settlement was about how Plaid communicated its services to consumers, not about a data breach or any unauthorized access to personal information. Plaid has never been accused of a breach of its systems or loss of sensitive data like banking information. The issue was more about transparency, and Plaid has since made changes to better align with consumer expectations.
Steps Plaid Took to Improve Data Security and Transparency:
- Enhanced Transparency: Plaid now provides clearer disclosures and consent mechanisms, ensuring consumers understand exactly what information is being shared and why.
- Updated User Interfaces: Plaid has made it easier for consumers to control what data is shared through enhanced user interfaces.
- Data Minimization: Plaid has limited the scope of data it collects to ensure only essential information is gathered to fulfill its services.
- Stricter Controls on Third-Party Access: Plaid has implemented more rigorous checks and controls for any third-party services that may interact with its platform.
Raise’s Due Diligence on Plaid: Before deciding to use Plaid, Raise took several steps to investigate and ensure the security and compliance of this software, and we continue to audit and monitor these security controls:
- Compliance Review: We confirmed that Plaid complies with industry standards such as SOC 2, a rigorous audit process designed to ensure the security, availability, and confidentiality of data.
- Security Audits: Plaid undergoes regular third-party security audits to identify and rectify any vulnerabilities. We verified these audits to ensure Plaid is continually improving its data protection protocols.
- Data Encryption: We confirmed that Plaid encrypts all personal data, ensuring it is securely transmitted and stored, minimizing any risk of unauthorized access.
- Partner Evaluations: We continuously evaluate all of our software partners, including Plaid, to ensure they meet our high standards for privacy, security, and regulatory compliance.
Please also note that the use of Plaid is not the only way you can get paid with Raise. You can input your direct deposit information manually in the app, or choose to be paid via a paper check. You can find out more on these options here.
We take your concerns very seriously, and we will continue to monitor and assess our software partners to ensure your information is protected. Please don’t hesitate to reach out to support@raise.team if you have any further questions or would like more details on the steps we take to secure your data.