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Tech Talk: Special charter industry feedback, business ID theft, fintech digital passport, and more!

  • Trade groups comment on special charters
  • COVID spawns businesses ID theft
  • Dave banking app data compromised
  • Virtual corporate credit cards
  • Fintech digital passport
  • Mitigating merchant fraud
  • Smart digital banking assistant
  • Robotic banking assistance
  • Instant cash back app
  • Spam, Scams & Breaches
  • Updates, Patches & Alerts
  • and on the lighter side...

Trade groups comment on special charters
Last month, acting OCC Comptroller of the Currency Brian Brooks unveiled plans for a proposed special banking charter for nonbank payment companies. Several financial industry trade groups are pushing back against the proposed charters. In a Joint Trades Letter on the Proposed Payments Charter published this week, the groups expressed concerns about the narrow-purpose payments charter and the serious risks these charters could present, urging the OCC "to undertake an open and transparent process before considering this new charter," reports Banking Dive. Industry trade groups have also called on Congress to impose a 3-year moratorium on the FDIC's approval of ILC charters, which the groups assert "weakens consumer protections and heighten systemic risk" by allowing ILC firms to avoid regulatory oversight. Banking Dive has the details.

COVID spawns businesses ID theft
While consumer identity theft has historically been more common than ID theft targeting businesses, commercial credit reporting firm Dun &amp Bradstreet saw more than a 100 percent increase in business identity theft last year. That number is expected to increase this year as the COVID-19 pandemic reaps havoc on the economy and impacts many small businesses that are prime targets for organized crime rings. A particularly aggressive business ID theft ring that's spent years targeting small businesses across the country is using government relief programs and unemployment benefits to scale up their attacks, reports Krebs on Security.

Dave banking app data compromised
In another case that highlights the risk associated with third-party providers, mobile banking startup Dave, an app that provides individuals with interest-free loans for overdraft protection, has fallen victim to a data compromise incident. A malicious actor gained unauthorized access to Dave's user data when Git analytics tool Waydev, a former provider, was breached. Reports have surfaced that the hacking group ShinyHunters, which brokers stolen data on the dark web, is believed to be behind the attack. Banking Dive has the details.

Virtual corporate credit cards
The use of contactless payments by consumers and businesses has surged during the global pandemic. Major card issuers Visa and Mastercard reported significant increases in the use of contactless transactions in the first quarter of this year. To provide immediate access to credit cards and streamline payments, JPMorgan Chase has partnered with fintech start-up Marqeta to launch virtual corporate cards for its commercial clients. Instead of waiting for a physical card to arrive in the mail, the digital cards can be integrated and used immediately with mobile wallets. CNBC has the details.

Fintech digital passport
Faced with emerging risks and regulatory scrutiny, banks must adhere to high security standards required by legislation to know their customers and the businesses they service. To mitigate fraud, money laundering, and other financial crimes, this becomes more essential than ever during the global pandemic and post-COVID recovery. Regtech startup Finch Global has launched a fintech digital passport supported by a shared KYC utility that enables regulated firms to verify the identity of their customers and validate businesses, reports IBS Intelligence.

Mitigating merchant fraud
When the pandemic forced the sudden closure of many brick-and-mortar shops, retailers were forced to deploy rapid digital solutions to meet the needs of their consumers. These consumer-centric innovations have provided new avenues of fraud that are being leveraged by criminals for ill-gotten gains. Online merchant fraud detection measures must be implemented that provide access for consumers but lock the bad guys out, reports PYMNTS.com. To provide consumers with a streamlined experience and reduce financial risk for the merchants that use its digital payment platform, online payment tech company PayU has teamed up with cyber fraud prevention firm Feedzai on a transaction monitoring system. PYMNTS.com has the details.

Smart digital banking assistant
The COVID-19 pandemic has accelerated digital adoption and digital transformation strategies in all industries, particularly in financial services. With no end in sight to the COVID crisis and the growing use of digital banking expected to continue even after the pandemic, U.S. Bank has launched a Smart Assistant that incorporates AI-based voice commands into its mobile banking app. The Smart Assistant enables customers to conduct a range of routine banking transactions while remaining socially distant and safe, reports ATM Marketplace.

Robotic banking assistance
India's YES Bank is offering its customers access to their financial accounts and the ability to apply for new products and services 24/7 with the help of a robotic sales assistant via WhatsApp. The YES Robot banking assistant, which is trained to respond to more than 10,000 banking-related queries, can provide account balances and other banking transactions and connect with online and telephone call centers. Finextra has the details.

Instant cash back app
Consumers have myriad choices today when choosing digital payment providers. Convenience, accessibility, and ease of use are primary features many consumers look for when choosing a mobile payment app. PayPal backed Raise Marketplace has launched a rewarding mobile payments app that can be linked to Apple Pay, Google Pay, credit cards, and bank accounts and pays instant cash back onto customer accounts when they shop. ATM Marketplace 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...

Technology is ever-changing and progressing. Not all good ideas are good ideas, some are more expensive than the value they offer, and others are simply a futuristic idea that didn't pan out. Here are ten infamous tech flops that were way ahead of their time.

First published on 07/31/2020

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