Posts Tagged ‘cybercrime’

What’s Next for Consumer Data Security?

Posted on September 29, 2017 by Laura Lam

For Equifax, the fallout from its massive data breach is far from over.  The company is facing numerous inquiries from government agencies and even lawsuits.  The breach exposed serious flaws in the financial system’s consumer data security framework.  So how can the financial services industry protect against fraud in the future?  How can they make things safer? According to a new report from ratings agency DBRS, the answer to making things safer is to further embrace technology.  Specifically, DBRS states that it believes the financial services industry needs to move towards biometric security, which would provide additional layers of protection that a Social Security…

Prime Target: Cybercriminals Set Sights on Tax Pros

Posted on April 04, 2017 by Laura Lam

According to security experts, tax preparers are a special target for cybercriminals.  Tax preparers make perfect targets because their hard drives hum with “personal identifiable information” – such as scans of clients’ driver’s licenses, W-2s and previous years’ returns – that cybercriminals want. Preparers are obligated to protect access to this information, as well as ensure that the data isn’t modified or damaged – but that can be difficult, particularly for smaller practices.  Cybercrime’s global economic impact has reached $1 trillion and spawned a sophisticated industry that is learning to steal more effectively from corporations and Main Street alike. Globally, cybercrime…

Cybercriminals Target Online Lenders

Posted on February 22, 2017 by Laura Lam

Financial organizations are being increasingly targeted by cybercriminals looking to capitalize on alternative lending and payment models. Although the entire financial services industry is a hotbed for cyber crime, online lenders are particularly vulnerable. They differentiate themselves based on their ability to process loan applications quickly – making them a soft target than some of the larger established banks.  According to the latest ThreatMetrix Cybercrime Report, 1 million cyberattacks targeted online lending transactions throughout 2016, and this number will continue to grow in 2017. The total value of these transactions is estimated at approximately $10 billion. This emerging trend in online lending…

Push for Faster ACH Payments Increases Bank Fraud

Posted on January 10, 2017 by Laura Lam

As of September, credit-based ACH payments are now being settled within the same day. These transactions involve one person/entity pushing money from their bank account to another person or organization, using the automated clearinghouse. Examples include direct deposit, payroll, person-to-person and vendor payments. Where before banks had 2 to 5 days to analyze suspicious transactions, now in some cases they have only 2 hours. Banks haven’t quite caught up with the shorter time frame for checking red flags, some say, and fraudsters have jumped on this opportunity. “Recently we’ve seen more evidence of incidences of ACH fraud than we have…

What Keeps Business Professionals Awake at Night?

Posted on July 08, 2016 by Laura Lam

The Wall Street Journal rounded up some recent surveys and reports dealing with payments, risk and security issues.  Here are some of the findings. Pay Up: A survey of around 200 private practice lawyers, in-house counsel and corporate C-level executives in the U.S., U.K., Europe and Asia by global finance firm Burford Capital found 86% of private practice lawyers have clients who in the last 5 years have not been paid the full value of a successful litigation or arbitration judgment or award. Almost 1 in 5 lawyers (19%) said their clients’ unenforced judgments were worth between $10 and $50 million, while 14%…

Most Consumers Will Take Business Elsewhere if Hacked

Posted on June 30, 2016 by Laura Lam

A recent study commissioned by Centrify found that 66% of adults in the U.S. are at least somewhat likely to stop doing business with a company that has suffered a cyberbreach. Less than half of Americans are very satisfied with how corporations handle cyberbreaches. The study surveyed people across the U.S., UK, and Germany and also found that most consumers believe businesses are almost entirely to blame for corporate hacks: 41% of adults in the U.S. hold corporations fully accountable and feel they are not taking enough responsibility when data breaches do occur. To some degree, most adults accept hacking…

Financial Firms Boost Cyber-Security Budgets

Posted on November 24, 2014 by Saldutti

Hundreds of U.S. financial companies are ramping up spending to combat hackers following attacks this summer on J.P. Morgan Chase & Co. and at least a dozen other firms.  Financial-services companies plan to bolster their cybersecurity budgets by about $2 billion over the next two years, according to a new report by PricewaterhouseCoopers.  Spending this year on protecting networks and other cybersecurity efforts will total $4.1 billion, according to PwC’s survey of banks, insurers, money managers and other companies. The spending increases represent accelerated efforts to keep hackers out and a realization that previous efforts haven’t been sufficient.  The increased…