Tech Talk: RT account validation, stablecoins, banking on ChatGPT, and more!

• Treasury on fintech, crypto, and cloud adoption
• Real-time bank account validation solution
• Stablecoins wide open for banks to take the lead
• Digital currency's impact on ATMs
• Cyber attack highlights FIs third-party risks
• Secure third party data connections for banks
• Caution: API potholes to avoid when banking SMEs
• ChatGPT: A boon or bane to the banking industry?
• The B2B payments perks-fraud conundrum
• Spam, Scams & Breaches
• Updates, Patches & Alerts
• and on the lighter side...

Treasury on fintech, crypto, and cloud adoption
New payment technologies and other emerging fintech that is rapidly accelerating the way consumers and investors manage their finances has drawn increased scrutiny by regulators and lawmakers. In remarks before the Exchequer Club in D.C. this week, U.S. Treasury's Assistant Secretary for Financial Institutions Graham Steele discussed the Treasury Department's efforts to address the risks associated with fintech and Big Tech, crypto assets, and cloud service providers. Treasury.gov has the details.

Real-time bank account validation solution
Nacha's WEB Debit account validation rule that went into effect last year requires originators to conduct account validation the first time an account number is used to make an online payment. Accelitas, a Nacha Preferred Partner for Bank Account Validation (BAV), has expanded its relationship with Fiserv to offer banks next generation cloud-based BAV services. By combining real-time data from Fiserv with powerful analytics from Accelitas, the instant pre-transaction account validation service can improve ACH success rates, reduce returns, and mitigate fraud risk while ensuring compliance with Nacha's rules. Finextra has the details.

Stablecoins wide open for banks to take the lead
Three years ago the Office of the Comptroller of the Currency (OCC) said that stablecoins should be issued by regulated financial institutions that are fully regulated and have the regulatory frameworks to manage stablecoin and tokenized deposits. Recent action taken by several financial regulators is causing private firms to backpedal from issuing the digital coin and paving the way for banks to take the lead. PYMNTS.com has the details.

Digital currency's impact on ATMs
Predictions of a cashless society have been foretold for decades, and yet the demand for cash remains steady and ATMs continue to be a popular banking channel for consumers. A study conducted by the American Bankers Association found that 95 percent of customers still use ATMs. Central bank digital currencies, their impact on the use of cash, and what the upward trend in digital currency means for ATMs was a hot topic during a panel discussion at ATMIA earlier this month. ATM Marketplace has the details.

Cyber attack highlights FIs third-party risks
When it comes to cybersecurity and the use of third parties (particularly in the financial sector), the most dangerous attitude any organization can have is the "it can't happen here" fallacy. A recent ransomware attack on a technology company that services the financial markets provided a glimpse into how a large-scale attack can bring down a segment of the financial services industry. Dublin-based ION Trading Technologies suffered a massive cyberattack that disrupted the trading and clearing of financial derivatives, highlighting how big financial firms can be impacted by breaches at fintechs and other third parties. Wall Street Journal has the details.

Secure third party data connections for banks
We live in, and have come to depend on, a highly interconnected world in which fintech has become the new normal. According to a 2022 Plaid survey with Harris Poll, U.S. consumers (75%) are placing more value on being able to connect bank accounts with digital finance apps and services. Data transfer network Plaid and identity provider Okta have teamed up to help banks and other financial services firms leverage OAuth (an industry-standard protocol for access delegation) and APIs for more secure connections when exchanging data with third parties. PYMNTS.com has the details.

Caution: API potholes to avoid when banking SMEs
Small to medium-sized business (SMEs) represent about 90 percent of businesses and more than 50 percent of employment worldwide. That's a lucrative market for financial services that legacy banks are missing out on. The problem: a massive mismatch between legacy banks’ processes and technology that is sized for SMEs. The solution: integrating automation and AI to reduce the cost of assessing and managing risk and servicing relationships, while avoiding the pitfalls associated with APIs. Finextra has the details

ChatGPT: A boon or bane to the banking industry?
If you have spent any time on the internet in the past few months, you know that a highly advanced language model developed by OpenAI has gone viral. ChatGPT is an AI digital assistant that is designed to answer questions and provide information in a conversational manner. The technology is being embraced by the banking industry to harness the treasure troves of data banks have to improve their customer experience, provide personalized financial advice, and automate repetitive tasks. While it has the potential to be a boon to the banking industry, there are drawbacks and limitations to the technology that banks should take into consideration when deploying ChatGPT. Entrepreneur has the details.

The B2B payments perks-fraud conundrum
Banks and businesses aren't the only ones leveraging technology to increase productivity and work smarter not harder. With the increase in online business-to-business (B2B) relationships and more companies embracing digital solutions, fraudsters are stepping up their game to exploit third party or ecosystem vulnerabilities. According to fintech security firm nsKnox, fraud rings are investing heavily in technology and increasingly operating like businesses to take advantage of the weak links in B2B payments and faster fraud opportunities. PYMNTS.com has the details.

Spams, Scams, and Breaches

• CNET: It's scary easy to use ChatGPT to write phishing emails
• Dark Reading: OT network security myths busted in a pair of hacks
• Dark Reading: 9 scammers busted for $5M Euro phishing fraud ring
• Help Net Security: Malware that can do anything and everything is on the rise
• Help Net Security: Cybercriminals exploit fear and urgency to trick consumers
• SC Magazine: Artificial intelligence offers swindlers a new tool for romance scams
• Security Week: Record breaking 71 million RPS DDoS attacks seen by Cloudflare
• Security Week: Cybercrime gang that defrauded victims of $5.3 million dismantled
• SC Magazine: BEC attacks surged 81% in 2022, 98% employees failed to report threat
• Bleeping Computer: NPM packages posing as speed testers install crypto miners instead
• Bleeping Computer: RedEyes hackers use new malware to steal data from Windows, phones
• Dark Reading: Russian cybercriminal faces decades in prison for hacking and trading operations

Updates, Patches, and Alerts...

• US-CERT: Current Activity
• Security Week: Dozens of vulnerabilities patched in Intel products
• Security Week: Firefox update patches 10 high-severity vulnerabilities
• Naked Security: Apple fixes zero-day spyware implant bug – patch now!
• The Register: Microsoft delivers 75-count box of patches for Valentine's Day
• Bleeping Computer: Microsoft Edge update starts disabling Internet Explorer 11
• Bleeping Computer: Microsoft: Exchange Server 2013 reaches end of support in April
• Security Week: SAP's February 2023 security updates patch high-security vulnerabilities
• Bleeping Computer: Citrix fixes severe flaws in Workspace, Virtual Apps and Desktops
• Security Week: Adobe plugs critical security holes that expose Windows and macOS users to malicious hacker attacks

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...

Remember when a Trojan Horse was actually a giant wooden Trojan Horse and not malicious malware? Cybersecurity firm CrowdStrike took on history's most infamous breach in its first Super Bowl commercial.