Account takeover fraud in the financial services industry is declining in contrast with other industries such as retail and hospitality. Researchers at Human Security attribute the nearly 50% reduction to one of the basic controls in cybersecurity: multifactor authentication.
The European banking sector is prepared at a high level for withering cyberattacks but there is "room for improvement" in its recovery capabilities, the European Central Bank said at the conclusion of a first-ever cyber stress test for banking.
During a hearing Tuesday, U.S. Sen. Richard Blumenthal, D-Conn., revealed that Bank of America, JPMorgan Chase and Wells Fargo only reimbursed 38% of unauthorized Zelle transaction claims - leaving consumers on the hook for $100 million in fraud losses. The banks disputed the committee's findings.
Aboitiz Data Innovation faced a unique challenge: Design a wholesale architecture for a generative AI lab for a bank while ensuring accurate responses and maintaining strict information security protocols, said Guy Sheppard, chief commercial officer at Aboitiz Data Innovation.
Financial institutions embracing real-time payments face the challenge of integrating new technologies and adapting behaviors. That's why initially most banks are only offering customers the option to receive payments, said Elena Casal, chief client officer at The Clearing House.
As the FedNow instant payment platform celebrates its one-year anniversary, Peter Tapling, board member of the U.S. Faster Payments Council, doesn't understand why financial institutions aren't bringing out new products that incorporate faster payments.
This week, WazirX, LI.FI, Dough Finance and CoinStats were breached; Satoshi Nakamoto impersonator's was charged; FTX and CFTC reached a settlement; a man was convicted of fraud; new details emerged in the Tornado Cash and SEC cases; and Taiwan set new AML rules.
A public-private effort with the codename Operation Spincaster is using intelligence related to 7,000 compromised cryptocurrency wallets and $162 million in losses to warn victims, recover funds and disrupt groups involved in crypto-powered approval phishing or pig-butchering scams.
In July 2023, the U.S. payments industry marked a major milestone with the launch of FedNow, the Federal Reserve's instant payment service for depository institutions. This long-anticipated development promises to revolutionize real-time payments across the country.
The financial services sector is a big target for cyberattacks because of the sensitive and valuable data handled by employees. Successful phishing attacks and careless data management practices within this sector can lead to data breaches, financial losses and reputational damage.
Traditional fraud detection methods are no longer sufficient against modern scams in which account holders are deceived into authorizing fraudulent transactions, said Peter Tapling, board member, U.S. Faster Payments Council. He also discussed how AI advancements make scams harder to detect.
The Monetary Authority of Singapore said banks will phase out one-time passwords for bank account logins over the next three months for customers who use digital tokens to authenticate their identity. The move follows a rise in phishing scams that impersonate banks in messages to steal credentials.
Evolve Bank & Trust disclosed that hackers stole the data of more than 7.6 million individuals in an incident detected in May. The Arkansas firm has been in incident disclosure mode for weeks now, following Evolve's listing on the LockBit leak site in late June.
Awareness of instant payments has grown significantly in the U.S. payments ecosystem since the launch of FedNow last July. Many banks have signed up for FedNow, but transaction volumes remain low because only the receive mode was activated, said Reed Luhtanen of the U.S. Faster Payments Council.
The risk of improperly classifying or controlling training data for AI models is significant, and data leakage is the biggest threat, said Bradley Schaufenbuel, vice president and CISO at Paychex. He recommends using "good old-fashioned access controls" to secure data from unauthorized access.
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