Tech Talk: Regulating crypto ATMs, lender data breach, fraud tools, and more!

• State wants to regulate crypto ATMs
• Lender sued for massive data breach
• AI and deep fakes leveraged in fraud attacks
• First-party fraud defenses
• Fintech helping banks grow deposits
• Managing third party vendors with AI
• Bank and MS team up on cyber tool
• Digital engagement platform for banks
• Consumers wary of pay-by-bank payments
• Spam, Scams & Breaches
• Updates, Patches & Alerts
• and on the lighter side...

State wants to regulate crypto ATMs
Crypto ATMs (aka Bitcoin ATMs) that allow users to exchange crypto currency for physical cash, have become one of the most common ways for criminals to launder money. The relative anonymity of transactions, along with the speed, convenience, and irreversibility of the cash-to-crypto conversion make these kiosks ideal for money launderers. To help mitigate these crimes, a bill has been introduced by Florida lawmakers that would apply traditional ATM restrictions to cryptocurrency ATMs. ATM Marketplace has the details.

Lender sued for massive data breach
The nation's fifth-largest retail mortgage lender, loanDepot, was hit with a ransomware attack earlier this month that exposed extensive personal data of 16.6 million people, including loan details, bank accounts, and credit card numbers. The attack follows the lender's disclosure of a data breach in May 2023 resulting from an August 2022 cyberattack that also exposed customer data. A class action lawsuit has been filed in California for the nonbank lender's "willful failure" to adequately protect customer data. Housing Wire has the details.

AI and deep fakes leveraged in fraud attacks
Generative artificial intelligence (AI) tools like ChatGPT that can create new and original content, chat responses, synthetic data, or even deepfakes is increasingly being leveraged by banks and businesses to offer highly personalized customer experiences and enhance user engagement. Criminals are also using the innovative technology to launch payment fraud attacks. CFO Dive has the details.

First-party fraud defenses
Today's emerging technologies provide new tools and more avenues for fraudsters to commit financial crimes. First-party fraud, when someone exploits their own identity for illegal purposes, is a growing concern in the financial sector. It can be particularly challenging for banks and merchants to detect these types of fraud since the perpetrator is using their own legitimate identity. Fraud detection systems and techniques, including analyzing patterns, and a risk-based, tiered approach to stepping up authentication can help combat financial fraud. PYMNTS.com has the details.

Fintech helping banks grow deposits
In the wake of bank failures and rising interest rates, small and mid-size banks have been impacted by bank runs and a decline in deposits. Deposit retention and growth have become key priorities for many banks over the past year. Fintech company ModernFi, which operates a deposit network that helps banks grow, retain, and manage their deposit base, has garnered support for its $18.7 million Series B round from several U.S. regional banks. Finextra has the details.

Managing third party vendors with AI
In its 2023 Annual Report to Congress, the Office of Financial Research (OFR) noted elevated risks to the financial sector, including a surge in ransomware attacks last year (up from 79% to 87%) that has resulted in the highest proportion of data breaches in the financial services industry since 2018, reports PYMNTS.com. With banks and credit unions increasingly relying on third-party vendors, financial institutions are leveraging AI technology to navigate contract management with their vendors, ensure they are in compliance, and address risks. PYMNTS.com has the details.

Bank and MS team up on cyber tool
Cyber criminals are continuously evolving their fraud tactics to stay ahead of security measures. To combat these increasingly sophisticated tactics, collaboration with key industry players and technology companies is crucial for banks to stay ahead of the bad actors. One bank has teamed up with tech giant Microsoft on a free cyber assessment tool to help small businesses in its region mitigate and respond to cyber attacks. Finextra has the details.

Digital engagement platform for banks
Traditional onboarding processes can be time-consuming, involving multiple forms and lengthy verification procedures. Today's tech-driven consumers expect seamless and efficient experiences. Enrollment friction prevents them from adopting critical account-related services like digital banking and automatic card payments. SaaS fintech Digital Onboarding has built an engagement platform tailored to banks and credit unions that prioritizes the user experience and drives customer retention and additional product adoption. Finextra has the details.

Consumers wary of pay-by-bank payments
Despite the growing popularity of account-to-account (A2A) payments, aka pay-by-bank payments, most consumers are dissatisfied with A2A payment options and won't use them. While these payments can be processed in real-time and reduce the risk of fraud, nearly 40 percent of consumers aren't interested in pay-by-bank payments, even if they are provided with incentives to use the service. PYMNTS.com has the details.

Spams, Scams, and Breaches

• CNBC: SEC hack was result of 'SIM swap' attack
• Finextra: Hong Kong banks take on SMS scammers
• Finextra: EquiLend services knocked out by cyber-attack
• Help Net Security: Bad bot traffic skyrockets across the web
• CIO Dive: Cyber tops business risk for enterprises worldwide
• Help Net Security: Digital nomads amplify identity fraud risks
• Infosecurity Magazine: New macOS Malware Targets Cracked Apps
• Dark Reading: CISA Director Jen Easterly targeted in swatting incident
• Cybersecurity Dive: US data compromises surged to record high in 2023
• Help Net Security: AI expected to increase volume, impact of cyberattacks
• KnowbBe4: "Swatting" becomes the latest extortion tactic in ransomware attacks
• Finextra: Scams to drive complaints to UK's Financial Ombudsman Service
• Security Week: MS reports Russian gov hackers stole email data from senior execs
• TechCrunch: Hackers breached Microsoft to find out what Microsoft knows about them
• Security Week: Hackers could exploit Lamassu bitcoin ATM vulnerabilities to drain wallets

Updates, Patches, and Alerts...

• US-CERT: Current Activity
• Security Week: Chrome 121 patches 17 vulnerabilities
• Security Week: Critical vulnerabilities found in open source AI/ML platforms
• Help Net Security: Attackers can steal NTLM password hashes via calendar invites
• Dark Reading: Days after Google, Apple reveals exploited Zero-Day in browser engine
• Security Week: Cisco patches critical vulnerability in enterprise collaboration products
• Cybersecurity Dive: Microsoft to overhaul internal security practices after Midnight Blizzard attack
• Security Week: Hackers targeting critical Atlassian Confluence vulnerability days after disclosure
• Cybersecurity Dive: CISA issues emergency directive for federal agencies to mitigate Ivanti vulnerabilities
• Help Net Security: Apple fixes WebKit zero-day vulnerability and debuts new features to frustrate iPhone thieves

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...

States across the country have taken advantage of electronic highway signs to share quirky and funny safety messages to draw drivers' attention. But the Federal Highway Administration is not laughing about these humorous highway signs.