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Tech Talk: FinCEN BEC advisory, crypto money laundering concerns, gamified banking, and more!

New FinCEN advisory on BEC scams
Phishing prevention tips from the Fed
Crypto money laundering concerns
Bank sues customer for wire fraud
A gamified banking strategy
N26 launches mobile bank in the U.S.
Over-the-top banking platform
Data aggregation to enhance the CX
Managing risk in the cloud
Spam, Scams & Breaches
Updates, Patches & Alerts
and on the lighter side...

New FinCEN advisory on BEC scams
Following a meeting held in New York City this week with industry players that focused on identifying and combatting BEC (Business Email Compromise) scams, FinCEN issued an update to its "Advisory to Financial Institutions on E-mail Compromise Fraud Schemes," first published in 2016. A Financial Trend Analysis of Bank Secrecy Act data released by the agency revealed that the total value of attempted BEC thefts reported in SARs climbed to an average of $301 million per month in 2018 (up from $110 million per month in 2016). The advisory alerts financial institutions to risks associated with the targeting of vulnerable business processes and highlights the potential for institutions to share BEC schemes they encounter to help identify risks of fraudulent transactions and money laundering. Fincen.gov has the details.

Phishing prevention tips from the Fed
Hackers are increasingly going on phishing expeditions to reel in email account passwords, bank login information, credit card numbers, and other personal information they can hook for nefarious uses. Security experts estimate that over 90 percent of all successful hacking and data breach incidents originate from phishing attacks, with the financial services industry among those most targeted for phishing attacks. American Express corporate and consumer cardholders have been targeted by a new phishing attack that deploys a novel technique to steal cardholders' credentials, reports Bleeping Computer. The Federal Reserve's July 15 FED360° newsletter included an article titled, "Gone phishing-Tips to help protect your organization from phishing attempts" that offers tips to help protect banks and other organizations from phishing attempts. FRB Services has the details.

Crypto money laundering concerns
In addition to privacy and financial stability concerns surrounding the pending launch of Facebook's Libra cryptocurrency project, lawmakers at a Senate Banking Committee hearing this week raised concerns about misuse of the social media giant's cryptocurrency by money launderers and terrorist financiers. A proposal to ban tech giants from functioning as financial institutions has been drafted by House Financial Services Committee Chair Congresswoman Maxine Waters. The "Keep Big Tech Out of Finance Act" proposal details rules that would prohibit not just Facebook but all major tech companies from becoming financial institutions or offering cryptocurrencies. CNN has the details.

Bank sues customer for wire fraud
A lawsuit has been filed by Cleveland-based regional bank KeyBank (a subsidiary of KeyCorp) against an Indiana-based payroll processor for fraudulent wire transfers that could cost the bank up to $90 million. KeyBank alleges that its business customer, payments processor Interlogic Outsourcing, fraudulently initiated wire transfers when the firm's CEO knew their account did not have sufficient funds to cover the transfers, reports CNBC.

A gamified banking strategy
To drive engagement with customers and build brand loyalty, financial institutions are going where today's digitally-driven customers spend a great deal of their time – on social media platforms. To encourage its customers to talk about money with family members and establish good financial habits early on, Ally Financial has launched a "Confessiongrams" campaign that challenges Instagram users to a virtual game of "truth or dare" featuring financial questions and dare challenges. Banking Dive has the details.

N26 launches mobile bank in U.S.
Banks in the U.S. are facing increased competition from European challenger banks who are branching out on American soil. German challenger bank N26 launched its mobile-only banking app in the U.S. last week to 100,000 American customers on its waitlist. As with other digital-only challengers, N26 avoided the need to obtain a U.S. banking license by partnering with U.S.-based, FDIC-insured Axos Bank to offer a federally insured checking account. N26 also offers a Visa debit card, real-time banking, fee-free ATM withdrawals, and financial management features, such as a unique sub-tier account, reports ATM Marketplace.

Over-the-top banking platform
Today's tech-savvy consumers want digital banking services that are not only functional but are also convenient and easy to use. UK fintech Curve offers all the above with its over-the-top banking platform that combines users' multiple payment cards into one Curve Mastercard and app. The digital startup has received funding valued at $250 million that will be used to add more features to its platform and expand its reach even further in Europe and to the U.S., reports TechCrunch.

Data aggregation to enhance the CX
The financial industry is increasingly learning the value of harnessing data to enhance the customer experience, provide personalized services, and upsell their products and services. Toronto-based startup Flybits has received $35 million in funding from major industry players, including Mastercard and Citi Ventures, for an innovative data aggregation platform that leverages AI and machine learning to help banks personalize their customer offers. The firm also plans to use the funding to develop a data marketplace for banks, fintechs and other providers to collaborate on more emerging financial services. TechCrunch has the details.

Managing risk in the cloud
Eliminating traditional IT constraints and providing a more agile and secure environment for financial institutions to innovate, financial firms are moving front- and back-office functions to the cloud. Providing the ability to process massive and fluctuating amounts of data, cloud computing is the next generation solution to managing risk and complying with regulatory reporting requirements. Finextra has the details.

Spams, Scams and Breaches

Updates, Patches and Alerts...

See what other current hot cyber and technology topics affecting financial institutions BOL users are discussing in the Technology Forum.

And on the lighter side...

Apple debuted its iPhone in June 2007, and for the past decade the iPhone has consistently ranked as the most popular mobile device with users around the world. Comedians John Crist and Trey Kennedy flashback to biblical times and parody what it would have been like if Bible characters had iPhones.

First published on 07/19/2019

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Tech Talk

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