Italy's Garante Fines Banking Apps €12.5M for Forced Device Surveillance

Italy's data protection authority, the Garante, has issued fines totaling €12.5 million against two banking app providers found to have embedded invasive device-monitoring tools inside their applications. The core of the violation was not just what these apps collected, but how they collected it: users were effectively forced to accept surveillance as a condition of accessing their own bank accounts. This banking app device surveillance privacy case sends a clear signal to the financial sector that coercive consent is not consent at all under EU data protection law.

How the Banking Apps Monitored Users' Devices Without Genuine Consent

The two companies embedded monitoring capabilities directly into the architecture of their banking apps. Rather than offering optional, clearly explained data collection, the apps made invasive device-level tracking a prerequisite for using the service. That means any user who wanted to check their balance, transfer funds, or manage their account had no practical choice but to allow the app to monitor their device.

This type of monitoring can include scanning installed applications, reading device identifiers, tracking behavioral patterns, and collecting hardware-level signals. While banks often justify these measures as fraud prevention tools, the method matters enormously under the General Data Protection Regulation (GDPR). Consent obtained under conditions where refusal means losing access to an essential service is not considered freely given. The Garante found that the companies crossed this line, and the €12.5 million fine reflects how seriously regulators view the practice.

What the €12.5 Million Fine Reveals About Forced Consent and GDPR Limits

GDPR Article 7 requires that consent be freely given, specific, informed, and unambiguous. When a banking app ties data collection to service access, it fails the "freely given" test outright. Regulators across Europe have been increasingly consistent on this point: bundled consent, where users must accept all data processing or receive nothing, is unlawful.

The Garante's decision adds Italy to a growing list of EU jurisdictions actively enforcing this interpretation. The financial services sector has historically operated under the assumption that fraud prevention justifies broad data collection. This ruling challenges that assumption. It distinguishes between security measures that are strictly necessary for delivering a service and those that go further, harvesting data for purposes users have not meaningfully agreed to.

For financial institutions operating across Europe, this case is a direct warning. The combination of a €12.5 million penalty and reputational damage creates real incentive to audit consent flows inside mobile products. For users, it is a reminder that the permissions screen on a banking app deserves far more scrutiny than most people give it.

Which Data Was Collected and Who Is at Risk

The specific data points captured by invasive banking app monitoring tools typically extend well beyond what is needed to verify identity or detect fraud. Device fingerprinting, for example, can reveal the full list of apps installed on a phone, usage frequency, unique hardware identifiers, network environment, and location signals. This information, aggregated over time, creates a detailed behavioral profile that has value far beyond any single login event.

The people most at risk are not just customers of the two fined companies. Any user of a banking app that requests permissions beyond basic functionality should consider the implications. This is especially relevant for people who access financial services while traveling, where they may be connecting through unfamiliar networks and have less control over their environment. The Garante ruling applies to Italy, but the apps in question may have had users across the broader region, including neighboring microstates like San Marino, which sits within Italy's regulatory orbit despite not being an EU member. If you regularly cross borders in the region or use Italian banking services, understanding your exposure matters. Our best VPN for San Marino guide offers a useful starting point for thinking about protection across this corner of Europe.

How VPNs and Privacy Tools Can Reduce Exposure From Invasive Banking Apps

No single tool eliminates the risk posed by an app that has already been granted device-level permissions. If you have installed a banking app and accepted its terms, the monitoring it performs happens within the app itself, not at the network level. That said, privacy tools still play a meaningful supporting role.

A VPN encrypts the traffic between your device and the internet, preventing your internet service provider, network operators, and potential interceptors from seeing your banking activity in transit. This matters particularly when using public Wi-Fi in hotels, cafes, or airports, where the risk of traffic interception is higher. A VPN does not stop an app from reading your device's installed app list, but it does protect the data leaving your device over the network.

Beyond VPNs, users can reduce exposure by reviewing app permissions before installing, denying permissions that seem disproportionate to the service offered, and using separate devices or sandboxed environments for sensitive financial apps where possible. Some mobile operating systems now offer permission dashboards that show how frequently an app accesses specific data types, which is a useful audit tool.

For anyone who travels through Italy or the surrounding region and relies on banking apps while abroad, combining a trustworthy VPN with careful permission management is a practical baseline. The Garante's enforcement action shows that regulators are paying attention, but regulatory fines arrive after the damage is done. Personal vigilance remains the first line of defense.

What This Means For You

The €12.5 million fine handed to these two banking app providers is not just a compliance story. It is a concrete illustration of how financial apps can quietly exceed the boundaries of what users actually agree to, and how regulators are increasingly willing to act. Here are the key takeaways:

  • Review app permissions regularly. When you install or update a banking app, check what it is asking to access. Question permissions that seem unrelated to banking functions.
  • Treat "accept all" prompts with skepticism. If a service makes broad data collection a condition of access, that is a red flag worth investigating before you tap agree.
  • Use a VPN on public or unfamiliar networks. Encrypting your traffic adds a layer of protection that complements other privacy habits, especially when traveling.
  • Stay informed about regulatory actions. Enforcement decisions like this one often name the types of practices being penalized, which helps you recognize similar patterns in other apps you use.

The Garante's ruling is a step toward accountability in the financial app ecosystem. Understanding what happened and why gives you the knowledge to make better choices about the apps you trust with your most sensitive financial data.