Tips for Tech

Talk Talk: Fed's instant payments goes live, fraud fighting tools, reverse ATMs, and more!

FedNow is live now!
FedNow equipped with fraud fighting tools
The U.S. and EU join forces on digital banking regulation
The fall and rise of ATMs
Fintech connects MRBs with banks
AI-based fraud fighting tools
Open banking's fraud fighting capabilities
Enhancing bank security with APIs
Industry groups to collaborate on scam mitigation
Spam, Scams & Breaches
Updates, Patches & Alerts
and on the lighter side...

FedNow is live now!
The Federal Reserve's long-awaited instant payments system that will give consumers and businesses a new route for speedier transactions has arrived! As the biggest overhaul to the U.S. payments system in half a century, the system has been in development for several years. Not only will it speed up payments through banks and credit unions, but it will also put the U.S. on par with other countries that have similar systems. The Federal Reserve has the details.

FedNow equipped with fraud fighting tools
While many will benefit from the FedNow and other instant payments systems, faster payments clear the path for faster fraud The speed and irrevocability of instant payments make it more challenging to detect and stop payment on a fraudulent instant payment transaction before a bad actor has already withdrawn the funds. To help mitigate these risks, FedNow comes equipped with features to help financial institutions deter high-speed fraud. Payments Dive has the details.

The U.S. and EU join forces on digital banking regulation
The Consumer Financial Protection Bureau (CFPB) and the European Commission have agreed to collaborate on digital developments in the financial sector and the impact emerging tech has on consumers. Sharing their respective insights and experience on issues related to consumer financial products and services, their primary objective will be to improve policy and regulatory issues. The dialogue will also address the risks that BNPL, AI, and other digital offerings present to consumers. Banking Dive has the details.

The fall and rise of ATMs
There's a new phrase and trend in the financial sector: cash digitization. Cash digitization converts physical currency into digital forms. This growing trend is leading to a decline in traditional ATMs and a rise in Reverse ATMs, also known as cash-to-card kiosks, which allow customers to deposit cash and receive prepaid physical or digital cards in return. Forbes has the details.

Fintech connects MRBs with banks
As long as marijuana remains a Schedule I controlled substance under federal law, financial institutions remain reluctant to service cannabis-related businesses. Silicon Valley-based fintech firm Dama Financial is helping businesses in the cannabis industry, such as dispensaries and cultivation centers, connect with banks that are open to serving the compliance-heavy and high-risk cannabis banking space. Banking Dive has the details.

AI-based fraud fighting tool
As the popular idiom "fighting fire with fire" goes, with financial crime heating up and sophisticated criminals leveraging generative AI to deploy new attacks, AI-based fraud-fighting technologies are needed to combat these emerging threats. Financial crime and risk management solutions provider Feedzai has rolled out a next-generation AI engine designed to target and intercept financial fraud before it occurs. Finextra has the details.

Open banking's fraud fighting capabilities
Fraud and identity theft attacks have evolved through online channels, and detecting criminals' digital tactics is an ongoing challenge for banks and merchants. Online transactions present multiple points of failure and vulnerabilities that can be exploited by bad actors impersonating legitimate individuals and organizations – highlighting the need for more effective online verification processes. Open banking can help decentralize identities and create a data bank of information about individuals and businesses that can check information across a number of sources when verifying identities. PYMNTS.COM has the details.

Enhancing bank security with APIs
While the practice of screen scraping is used for legitimate purposes, i.e., data aggregation and personal finance management apps, it presents major security issues for banks. By replacing this practice with APIs (Application Programming Interfaces) banks and users can have greater control over shared data and consent management. ATM Marketplace has the details.

Industry groups to collaborate on scam mitigation
The rise in social media and automation has driven an increase in scams. According to security firm Group-IB, scams accounted for more than half (57%) of all financially-motivated cybercrime in 2021, outpacing phishing, ransomware, and malware. To address some of the key issues surrounding scams, the Federal Reserve Financial Services has established two new working groups to improve scam mitigation: a fraud definition and classification work group and a scams information sharing work group. FRB Services 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...

New AI voice and video tools can look and sound like a real person. In this demonstration it even passed bank biometrics.

First published on 07/21/2023

Briefing type:

Tech Talk

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