The following is an excerpt from today’s Global Newsletter.
CFPB director Rohit Chopra was back in front of the senate banking committee Tuesday, where he brought his focus on fraud in the P2P payments space.
“They need to speed up with respect to services like Venmo, Zelle, and others,” Chopra told the committee.
Factor in the explosion of existing and upstart companies leveraging plain old AI and its whiz-bang, attention-grabbing generative AI pup, and you have a recipe for a similar explosion in fraud… only at light speed. Once FedNow is active, blinking will take longer than money movement.
This scolding follows last week’s warning for those treating their accounts in payment transfer apps as savings… if you hold the money in the app, you’re not holding it in insured bank accounts.
Fraudsters are always the quickest to adopt and exploit new and emerging tech, and the speed of adoption grows with every launch.
Featured
USA |
Banks too slow to address P2P payment scams, CFPB’s Chopra says www.bankingdive.com “They have been very slow to take action,” the bureau’s director said Tuesday when asked if banks were creating frameworks to combat fraud and scams conducted on peer-to-peer payment platforms. |
Sponsored
Fintech Blueprint Calling all builders By Fintech Nexus Subscribe to The Fintech Blueprint for an in-depth analysis of fintechs, DeFi & investing. From the mind of Lex Sokolin, Chief Economist, ConsenSys. |
From Fintech Nexus
LatAm QED Investors’ $1B capital boost offers hope for LatAm fintech By David Feliba QED raised $1B in funding to back fintech startups. Partner Mike Packer talked to Fintech Nexus to discuss its impact on Latin America. |
Podcast
The Fintech Coffee Break – Adam Nash, Daffy Isabelle sat down with Adam Nash from Daffy this week to talk about modernizing donor-advised funds. Listen Now |
Webinars
Unmasking Sanctions Evasion: Trends, Challenges, and Solutions Tomorrow, 2 p.m. EDT One of the most crucial components of compliance is sanctions screening, which entails identifying and blocking transactions… Register Now |
June 20: Challenges and Opportunities of Digital Credit Register Now |
Also making news
- Global: Generative AI Is the Attila the Hun that’s going to end the banking system as we know it One aspect of the banking crisis is over, but generative AI stands to vanquish hundreds or thousands more small and mid-size banks.
- Global: Digital identity is financial market infrastructure, but everyone else needs it too The internet lacks an ID layer, and it may well be that where telcos, banks, and governments failed to provide one, the fintechs and techfins will step up to the plate.
- USA: Binance spars with U.S. regulators over asset freeze A judge urged the Securities and Exchange Commission to reach a compromise with Binance that would allow the world’s largest cryptocurrency exchange to continue operating in the United States.
- USA: Regional banks face years of trouble The banks will be focused on strengthening their balance sheets and trying to keep depositors and regulators happy for a long time.
- USA: SMB lending fraud keeps growing – how can lenders protect themselves? Lending money involves risk. And it gets even riskier when fraudsters are involved. SMB lenders experienced as high as 14.5% loan fraud between 2021 and 2022, that’s up from a 6.9% increase experienced the year prior.
- USA: The hidden risks of BaaS and embedded finance: Inside Apple’s struggle The honeymoon between Apple and Goldman Sachs may be over.
- USA: Republicans court Democratic support of crypto bill House Financial Services Committee Chairman Patrick McHenry, R-N.C., said that he has an “open door” for bipartisan rulemaking regarding the Republican crypto oversight bill.
- USA: How Maria Gotsch turned New York into a fintech hub Gotsch is one of American Bankers’ Most Influential Women in Fintech.