Protecting Modern Consumers from Banking Fraud

Shefali Vasave | August 4, 2022 | 408 views | Read Time : 02:22 min

Protecting Modern Consumers from Banking Fraud
There is barely anything today that isn’t facilitated by the internet. And money is no exception. With digital payments and banking, the days of waiting at the branch to deposit or withdraw money are long behind us. In addition, forgetting your wallet behind just doesn’t cause as much panic as it could. In 2021, buy now, pay later (BNPL) services accounted for over $100 billion in purchases. About 93% of customers have used online banking at least once.

Not only has online banking opened up new avenues for businesses and customers alike, it has also exposed them to the possibility of being defrauded. Scamming methods have continued to evolve. As technology develops, so does the sophistication of techniques which cause banking fraud. Banking institutions have much to lose if their customers become victims of such fraud. For one, not only is it a financial loss to the customers, but it raises questions about the security of banking systems. This is why it is so important for banks to improve online security and keep their customers safe from cybercriminals who try to steal their money.

Where Do the Cybercriminals Lurk?

Two-factor authentication has been a major step towards bolstering online security worldwide. However, scammers are evolving alongside these developments and are finding ways to break into these security measures as well. Their methods are based on the target of the fraud. For instance, social engineering scams manipulate victims psychologically in order to extort money or confidential data. These methods rely on the understanding of human tendencies and behaviour in order to exploit banking customers.

Many cybercriminals are now using multi-layer systems in their defrauding attempts. For instance, a combination of phishing, remote access, and SMS scams to bait their victims Cybercriminals have also been known to use bots to reach thousands of people and try to get one-time passwords from phones and past bank firewalls.


The Modern Vulnerable Consumer

With a volatile economic landscape, it has become easier to take advantage of both vulnerable and non-vulnerable demographics. Elderly individuals remain a prime target for cybercriminals to scam. Some reports reveal that scams against the elderly amount to about $3 billion every year. The most common methods of scamming the elderly include imposter scams, romance traps, and sweepstakes.

On the other hand, Gen Z is not safe from banking fraud either, especially due to the prevalent use of social media among the demographic. Many cases of young consumers being targeted through direct messages by “mule herders” are common. This is especially effective because Gen Z users prefer convenience and neglect privacy, letting cybercriminals lure them into quick cash and money laundering schemes.


Convenience and Privacy Should Go Hand in Hand

While privacy is paramount, convenience should never take a backseat in the pursuit of multi-layered security in digital banking. Addressing fraud risk is a significant and long-drawn task that needs constant innovation. Customers are susceptible to cyberattacks because authentication mechanisms haven't changed as scammers have become more sophisticated. Banking firms must acknowledge the limitations of one-time passcodes and other traditional authentication methods and implement solutions that go above and beyond device-based approaches in order to provide comprehensive protection. In addition, all this must be done keeping in mind convenience and reducing friction in user experience as it is going to be integral to the success of establishing highly secure banking practices.

Spotlight

Cambridge Financial Advisers

Cambridge Financial Advisers is a full-service business consulting and strategic planning organization. Our network of professional includes account managers, registered representatives, and a full-service broker/dealer. The views expressed within this site are the views of the poster alone and do not necessarily reflect the views of Penn Mutual or HTK unless otherwise stated. Information provided is for educational purposes only and shouldn’t be viewed as a recommendation to buy or sell any particular financial product or service. Depending on your individual situation, discussions presented may not be appropriate.

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Cambridge Financial Advisers

Cambridge Financial Advisers is a full-service business consulting and strategic planning organization. Our network of professional includes account managers, registered representatives, and a full-service broker/dealer. The views expressed within this site are the views of the poster alone and do not necessarily reflect the views of Penn Mutual or HTK unless otherwise stated. Information provided is for educational purposes only and shouldn’t be viewed as a recommendation to buy or sell any particular financial product or service. Depending on your individual situation, discussions presented may not be appropriate.

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Western Alliance Bank We are pleased to support the development of a platform leveraging innovative blockchain technology, with the potential to expand our suite of services and provide our customers with the speed and convenience of 24/7/365 payments and more, Piloting The Digital Interbank Network is one way we are driving next-generation commercial banking,said Tim Boothe, Chief Operating Officer, Western Alliance Bank. The Network has been advancing towards its commercial launch with the input and guidance from a working group of Special Charter Member Banks: Byline Bank, California Bank of Commerce, Emprise Bank, First Foundation Bank, Lineage Bank, OceanFirst Bank, SouthState Bank and Texas Capital Bank. The Network’s Special Charter Members have been enormously helpful in the development of The Network. We are grateful for their participation to help us get to this momentous launch and look forward to continuing to work closely with them, added Greene. 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Tassat® successfully completes launch of The Digital Interbank Network™

Tassat Group | October 04, 2022

Tassat Group Inc., the leading provider of private blockchain-based business-to-business (B2B) real-time payments and financial services solutions to banks, announced that The Digital Interbank Network completed over $500 million in real-time transactions among three banks using Tassat-controlled accounts on Saturday, October 1. The groundbreaking launch saw over 400 transactions conducted without failure during an 8-hour period, an average of $1.25 million per transaction, using Tassat-controlled accounts at Cogent Bank, Customers Bank (NYSE: CUBI) and Western Alliance Bank. Tassat’s goal is to establish The Network as a viable platform for participating banks’ B2B customers to execute real-time payments between businesses at different banks. “We exceeded our goal for the launch with over $500 million in transactions, It is exciting to be part of such a historic moment in the banking industry as our blockchain technology solution transforms banking in America." -Kevin R. Greene, Tassat’s Chairman and CEO It has been our long-held view that private permissioned blockchain technology operating entirely within the existing US banking system can deliver all the power of blockchain without the need to discard or replace the trusted U.S. banking system that has served the U.S. and the world for more than 100 years. Tassat’s goal is to work with U.S. banks to modernize the U.S. banking system, not to displace or disintermediate banks. We don’t want to see traditional banks get left behind, added Greene. We would like to thank the banks that we worked with today as well as the dozens of banks who have provided guidance and input over the last nine months. We look forward to making this capability available to every bank and their customers in the U.S., said Greene. First introduced in December 2021, The Network will facilitate secure, instantaneous transactions 24/7/365 between B2B customers of all sizes at member banks and features no Network-imposed limits on transaction sizes or volumes. Operating on a private permissioned blockchain, The Network uses technology developed by Tassat but is designed to serve its U.S. bank members. The Network is distinct from TassatPay®, which is Tassat’s flagship platform that enables real-time transactions between business customers of the same bank. As of October 1, TassatPay has processed more than $600 billion in transactions. Senior officials of the banks participating in the demonstration commented on The Network’s successful execution of over $500 million in transactions: Cogent Bank Being part of The Digital Interbank Network is a clear demonstration of our desire to be a leader in the next generation of the U.S. banking system, We are proud to participate in the development of a platform that will provide our customers speed and security in their financial transactions,said Lee Hanna, CEO, Cogent Bank. Customers Bank Customers Bank is committed to serving commercial customers with scaled blockchain technology and greater ecosystem offerings, We look forward to continuing to work with Tassat in their development of The Network’s capability to serve these institutions more efficiently and with greater safeguards,said Sam Sidhu, President and CEO, Customers Bank. Western Alliance Bank We are pleased to support the development of a platform leveraging innovative blockchain technology, with the potential to expand our suite of services and provide our customers with the speed and convenience of 24/7/365 payments and more, Piloting The Digital Interbank Network is one way we are driving next-generation commercial banking,said Tim Boothe, Chief Operating Officer, Western Alliance Bank. The Network has been advancing towards its commercial launch with the input and guidance from a working group of Special Charter Member Banks: Byline Bank, California Bank of Commerce, Emprise Bank, First Foundation Bank, Lineage Bank, OceanFirst Bank, SouthState Bank and Texas Capital Bank. The Network’s Special Charter Members have been enormously helpful in the development of The Network. We are grateful for their participation to help us get to this momentous launch and look forward to continuing to work closely with them, added Greene. About The Digital Interbank Network The Digital Interbank Network is the world’s first blockchain-based, real-time B2B payments network operating entirely within the existing regulatory framework of the U.S. banking system. The Network’s members include only FDIC-insured banks transacting real-time payments and performing other banking services between commercial customers –24 hours a day, 365 days a year, via a private permissioned blockchain. The Network enables banks to offer a virtually unlimited range of secure, real-time services to their customers, including instantaneous blockchain-based payments, Fedwire integration and Smart Contracts. The Network is a highly secure, private permissioned blockchain-based payment instruction and settlement platform that is accessible only by member banks. About Tassat Group Tassat Group Inc. is a NY-based technology company that is the leading provider of private blockchain-based, real-time solutions for commercial banks including TassatPay, which enables banks to provide their customers with instantaneous, secure, real-time payments 24/7/365. TassatPay has become the most trusted blockchain-based platform for the banking industry and its B2B customers with more than $600 billion in secure, real-time transactions to date. Tassat has added Smart Contracts and Fedwire functionality to make TassatPay a one-stop shop for B2B Payments. Tassat was honored with a 2021 Google Cloud Customer Award for innovation in financial services.

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FINTECH

Siguler Guff Acquires a Majority Stake in Solvd Inc., an Emerging Leader in Digital Engineering Services

Solvd and Siguler Guff | October 03, 2022

Solvd Inc., a global technology consultancy and software engineering company, today announced that it has secured a majority investment from Siguler Guff & Company, LP (Siguler Guff), a global multi-strategy private markets investment firm with deep experience in the digital product development industry. With Siguler Guff's support, Solvd can continue to expand its distributed development division and will seek to strengthen its advanced capabilities in test automation, application development, and DevOps for its clients. The Company will also look to further support its management team by adding senior sales and engineering-focused professionals in the U.S. Founded in 2011, Solvd's team of over 600 engineers spans eight countries in Latin America, North America and Eastern Europe. Solvd services Fortune 500 clients across several high-growth industries including FinTech, Retail, Media & Entertainment, Software and Health & Wellness. In each of the last three years, the Company has doubled its sales by leveraging Zebrunner, their innovative proprietary quality management platform. "Siguler Guff's investment is an important validator of the truly valuable experience our employees and management team have achieved for our clients, Siguler Guff's industry insights, strong relationships, and collaborative style make them an ideal partner. We are thrilled to be a core investment from their flagship growth fund and welcome Drew Guff and Shaun Khubchandani to our Board of Directors." -Alex Khursevich, CEO of Solvd Drew Guff, Managing Director and a Founding Partner of Siguler Guff, commented, Having previously invested in industry leaders EPAM Systems and GlobalLogic, our firm is focused on backing digital transformation. We couldn't be more excited to continue this commitment by partnering with the Solvd team to support the development of their outstanding software product and client services. We look forward to working together in this new phase of accelerated growth and expansion of the Company's delivery footprint. Shaun Khubchandani, Managing Director and a Portfolio Manager of Siguler Guff, added, Across all sectors, successfully migrating to digital has become a crucial differentiator for businesses globally. Solvd's engineering expertise and IP-focused culture enable it to lead this paradigm shift and competitively gain market share over its competition. The Company provides meaningful opportunities to the growing tech talent base in Europe and Latin America, and Siguler Guff is uniquely positioned to use its sector experience to bolster Solvd's talent base organically and through acquisitions. About Solvd Solvd is a global technology consultancy and software engineering company with over 600 engineers located across eight countries in Latin America, North America and Europe. Solvd has built a core competency in software QA and test automation consulting and its solutions have broadened to include custom app development, DevOps, AR / VR development among other solutions which the Company has developed to meet their client's growing needs. The Company has also developed a rich intellectual property library which includes Zebrunner, an innovative proprietary quality management platform. Solvd services Fortune 500 clients across several high-growth industries which include FinTech, Retail, Media & Entertainment, Software and Health & Wellness. Solvd is headquartered in Roseville, CA, and has 7 development centers in Ukraine, Poland, Georgia, Argentina, Brazil, Mexico and a sales office in Hungary. About Siguler Guff Siguler Guff is a leading global multi-strategy private markets investment firm, which together with its affiliates, has approximately $17 billion of assets under management, as of June 30, 2022, and over 30 years of investment experience. Siguler Guff seeks to generate strong, risk adjusted returns by focusing opportunistically on market niches. Siguler Guff's core investment strategies include opportunistic and private credit, small business private equity, distressed real estate and emerging markets. Siguler Guff's investment products include direct investment funds, multi-manager funds, and customized separate accounts. Founded in 1991 and headquartered in New York, Siguler Guff maintains offices in Boston, London, Mumbai, São Paulo, Shanghai, Seoul, Tokyo, Hong Kong and Houston, TX.

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