is plaid safe to use

Plaid is generally considered safe to use. It employs strong security measures such as advanced encryption protocols (AES 256 and TLS), multi-factor authentication (MFA), and read-only access tokens that prevent apps from making changes to accounts. Plaid also undergoes regular third-party security audits, penetration tests, and maintains 24/7 security monitoring to protect users' data. Additionally, users have control over connected apps and can revoke access via the Plaid Portal. However, Plaid has faced privacy concerns and a class-action lawsuit in 2022, resulting in a $58 million settlement. Since then, Plaid has enhanced transparency, data minimization practices, and user control over data sharing. Though no major data breaches have occurred, it is important to manage app permissions carefully. In summary, Plaid uses industry-standard security to safeguard financial data and provides tools for users to control access, making it safe for most users to use financial apps that rely on Plaid to connect to bank accounts.