Tips for Tech

Tech Talk: The Fed on cyber risks, exploited ID processes, AI, and more!

Fed calls on banks to bolster cyber defenses
Exploited identity processes top BSA reports
Group to explore AI in financial services
AI adoption assist for FIs
Consumers wary about AI fraud prevention measures
Fiserv wants to be self-serve
The digital vs traditional shift in banking
A generational transformation in banking
Trio teams up on luxury BaaS solutions
Spam, Scams & Breaches
Updates, Patches & Alerts
and on the lighter side...

Fed calls on banks to bolster cyber defenses
In response to the rise in ransomware and recent attacks that have disrupted operations at financial institutions, Fed's Vice Chair for Supervision Michael Barr addressed attendees at the annual Conference on Measuring Cyber Risk in the Financial Services Sector. Barr expressed the critical need for banks to identify and address vulnerabilities in their networks, particularly with regard to managing third-party risks. The Federal Reserve has the details.

Exploited identity processes top BSA reports
The proliferation of data breaches, the rise in synthetic identities, and the increased adoption of artificial intelligence (AI) is helping bad actors circumvent security controls in account opening, access, and transactions ("identity processes") to perpetrate financial crimes. FinCEN's recent financial trend analysis based on data compiled from identity-related suspicious activity reports revealed that 1.6 million (42%) BSA reports filed in 2021 were tied to the exploitation of identity processes. Depository institutions filed the greatest number of identity related BSA reports (54%) and impersonation, compromise, and circumvention of verification standards were among the top five identity exploits. Finextra has the details.

Group to explore AI in financial services
Cyber threat landscapes and cybersecurity have been transformed by the widespread adoption of AI, particularly generative AI (GenAI). The House Financial Services Committee has formed a working group to explore the benefits and risks associated with the adoption of AI in financial services. While the technology is already being used to facilitate the detection of financial crime, analyze risks, and personalize customer services, the group will examine how existing and future regulation can provide effective oversight and promote innovation while protecting consumers and the stability of our financial system.
Financial Regulation Newshas the details.

AI adoption assist for FIs
Banks, credit unions, and other financial institutions are increasingly moving toward AI adoption to remain competitive today and relevant in the future. Global payments technology provider Opus Technologies has launched FinGeniusAI Solutions, an open innovation platform that will enable financial institutions to harness the power of AI in payment processing and other critical issues faced by financial institutions. Payments Dive has the details.

Consumers wary about AI fraud prevention measures
According to regtech firm ComplyAdvantage's The State of Financial Crime 2024 report, AI has proven to be a formidable tool to combat the ever-evolving threat of fraud, While many financial institutions (86%) are moving toward harnessing AI technology to increase their defenses against today's emerging threats, a majority of consumers don't want banks to employ AI measures to protect them. Fintech Finance News has the details.

Fiserv wants to be self-serve
Global fintech and payments provider Fiserv has been helping financial institutions, businesses, and people move money for decades. Historically, the fintech firm has relied on a bank partner to handle the end-of-day transaction settling for merchants. The company is pursuing a limited bank charter that would enable them to interact with card networks directly instead of operating through a sponsoring bank. Payments Dive has the details.

The digital vs traditional shift in banking
When neobanks emerged as formidable alternatives to traditional brick-and-mortar banks, it was an "us" versus "them" competitive playing field. Traditional banks adapted their game plan by implementing emerging technologies and remote human assistance as an alternative to digital-only banking. This innovation driven competition between incumbents and challengers has changed the banking landscape and enabled consumers to optimize their banking experience by leveraging the best of both worlds. ATM Marketplace has the details.

A generational transformation in banking
Today's Millennial and Gen-Z consumers have grown up in an era of rapidly evolving technology, where convenience and speed are paramount. New platforms that enable customers to conduct business quickly and from any location is being widely embraced by these tech-savvy generations. As Millennial and younger customers age into demographic dominance, their preferences will come to define the standard for banking and payments – which could have both positive and negative ramifications. FinTech Futures has the details.

Trio teams up on luxury BaaS solutions
Banks of all sizes can greatly benefit from Banking-as-a-Service (BaaS) solutions, which open up new avenues to offer innovative financial products, adapt to evolving market trends, and expand their customer base. Two high-profile fintech firms and a Tennessee-based bank are teaming up on BaaS solutions to seamlessly integrate and offer cutting-edge financial services that cater to the unique needs of high-net-worth individuals and businesses. PYMNTS.com 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...

What do you get when ex-”MadTV” cast member Will Sasso and comedian Chad Kultgen team up? Dudesy ! - the AI that hosts a controversial comedy podcast.

First published on 01/19/2024

Briefing type:

Tech Talk

Report a problem with this page