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Tech Talk: Small banks on data access rule, FedNow fraud tools, FMO, and more!

Small banks appeal to CFPB on data access rule
FedNow to arm banks with anti-fraud tools
Bank adds in-app anti-scam features
A Pay-by-Bank payment alternative for POS
Cybercriminals blocking contactless payments
Bank phishing tools for sale
FMO on the digital identity market
Millennials and Gen Z are reshaping the banking landscape
Navigating the cloud migration journey
Spam, Scams & Breaches
Updates, Patches & Alerts
and on the lighter side...

Small banks appeal to CFPB on data access rule
Consumer watchdog agency the CFPB has been taking steps to give consumers greater control over their financial data. One of the actions the Bureau is proposing is to stop data aggregators from screen scraping (the practice and require banks to establish APIs (application programming interfaces). Community banks that lack the tech budgets needed to create such platforms say the new standards puts them at a steep disadvantage and are appealing to the CFPB to give them more time to implement the technology. Banking Dive has the details.

FedNow to arm banks with anti-fraud tools
After years in the making, the long anticipated FedNow Service to facilitate instant payments for U.S. financial institutions is expected to launch this summer. In addition to enabling every institution (regardless of size) across the country to provide safe and efficient real time payments 24/7, 365 days a year, the service will include features that help mitigate fraud. Additional anti-fraud measures the Federal Reserve plans to roll out in 2024 will help financial institutions raise the bar on fraud management. PYMNTS.com has the details.

Bank adds in-app anti-scam features
Scams – and the malfeasants who perpetrate them – are becoming more sophisticated and getting more creative in devising ways to separate victims from their money. According to the CFPB, consumers lost $130 million in 2021 to scammers via payment apps or similar services. To help protect its customers, Commonwealth Bank has integrated anti-scam features in its CommBank app. Finextra has the details.

A Pay-by-Bank payment alternative for POS
Rising credit card swipe fees, aka interchange fees, have long been a point of contention for retailers and have fallen under the scrutiny of lawmakers this past year. Global payments technology firm Sionic, based in Dayton, Ohio, has partnered with digital payments solutions provider Sionic to offer the industry’s first real-time Pay-by-Bank payments service that enables bank-to-bank digital cash transfers at the point-of-sale in the U.S. market. Business Wire has the details.

Cybercriminals blocking contactless payments
To address the exponential rise in card fraud, magnetic stripe cards were replaced by EMV chip cards and contactless payments, which have been further accelerated since the pandemic. Nearly eight in ten payment transactions globally are now contactless, with growth predicted to expand to $37.23 billion in 2025. But as is the case when new technology emerges, criminals find new ways to circumvent security measures. Security firm Kaspersky has discovered a new malware that blocks consumers' ability to make contactless payments so they are forced to insert their cards in the terminal, enabling the thieves to steal PIN codes. Finextra has the details.

Bank phishing tools for sale
With the increasing use of mobile banking apps – which has accelerated since the pandemic – cybercriminals are going where the money is. And they are getting a little help from their friends in underground cybercrime forums. One bad actor is selling InTheBox web injects (overlays of phishing windows) for stealing credentials from banking apps that can check the validity of the card numbers entered by victims and constantly updates with pages that target more banks and financial apps. Bleeping Computer has the details.

FMO on the digital identity market
FMO (the acronym for "fear of missing out") is a trending marketing tactic used by brands and companies to drive sales by creating artificial deadlines that encourage their target audience to act now instead of postponing a decision to move forward. There has been a growing demand for digital identity solutions to improve the end-to-end customer experience. A new report released by bank-backed Mobey Forum is sounding the FMO alarm for banks to leverage their position as custodians of personal data and claim their stake in the evolving digital identity space or risk being left behind. Finextra has the details.

Millennials and Gen Z are reshaping the banking landscape
Millennials and Gen Zers are on track to become the most important customer group for banks over the next decade. These digital natives are a rare sight in physical branches, preferring to do their banking online and via mobile apps. To appeal to this growing demographic, banking is shifting from a physical structure to a much more flexible virtual format. Yahoo Finance
has the details.

Navigating the cloud migration journey
The path to digital transformation for businesses, including banks, ultimately leads to the cloud. Providing a more secure, resilient, and scalable solution, cloud-based technology or third-party hosted solutions enables banks to bring new services to market faster and create a more frictionless customer experience. If your bank is considering or has already started taking this transformative step forward, there are some key points to consider when navigating the cloud migration journey. Forbes 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...

Pennsylvania's famous groundhog, Punxsutawney Phil, forecasted six more weeks of winter when he emerged from his ceremonial burrow at Gobbler's Knob this week and saw his shadow. In the movie "Groundhog Day," released 30 years ago, Phil (the weatherman played by Bill Murray) experienced a fundamental change. Director Harold Ramis shared how the message resonated with various groups of people.

First published on 02/03/2023

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