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News and resources on cyber and physical threats to banks and fintechs worldwide.

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Police bust cybercrime phishing subscription network

Police bust cybercrime phishing subscription network

Police have arrested 37 members of a criminal gang that operated a phish-for-subcription Website that duped up to 70,000 UK victims into entering their bank details at fraudulent internet sites.

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TokenEx and Ixopay to merge

TokenEx and Ixopay to merge

Fintech & Beyond: The wider industry impact

Fintech & Beyond: The wider industry impact

Barclays reports large spike in investment scams

Barclays reports large spike in investment scams

BoE forecasting held back by out-of-date tech - Bernanke

BoE forecasting held back by out-of-date tech - Bernanke

Lloyds Bank cuts risk dept headcount

Lloyds Bank cuts risk dept headcount

Insurers target crypto market

Insurers target crypto market

Cyber attacks cost financial firms $12bn says IMF

Cyber attacks cost financial firms $12bn says IMF

EBA Clearing preps Verification of Payee

EBA Clearing preps Verification of Payee

Bank of Ireland blames latest glitch on "technical issue"

Bank of Ireland blames latest glitch on "technical issue"

Iosco to examine business models of ever-expanding exchanges

Iosco to examine business models of ever-expanding exchanges

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[Webinar] Payments systems are evolving quickly: Is your institution ready?[Webinar] Payments systems are evolving quickly: Is your institution ready?
Security blogs
Fintech  

How innovation in encryption is helping secure the credit card approval process

Ghazi Ben Amor

Ghazi Ben Amor - Zama - Paris

Operational Risk Management  

DORA – Navigating the EU’s Operational Resilience Landscape

Antony Fung

Antony Fung - CJC - London

Fintech  

The importance of risk management in trading

Kate Leaman

Kate Leaman - AvaTrade - London

Digital Identity Management  

Navigating the digital identity landscape: A blueprint for financial services competitiveness

Adam Preis

Adam Preis - Ping Identity - London

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Latest TV
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Fintech & Beyond: The wider industry impact

Fintech & Beyond: The wider industry impact

Kicking off UK Fintech week at the 10th year of IFGS, Janine Hirt, CEO of Innovate Finance, speaks to FinextraTV about the impact of Fintech across non-financial industries and the importance of collaboration between Fintechs, government, industry and regulators in shaping the economy, addressing inequality, and strengthening social justice and peace. We hear about how the consumer will benefit from Embedded Finance and Open Data and the role AI, regulation and push payment fraud will play in helping drive sustainable finance over the next 10 years.
E-commerce payment strategies: Choosing the right partner for your business

E-commerce payment strategies: Choosing the right partner for your business

Speaking at MPE 2024, Ugne Buraciene, Group CEO at payabl., discusses the responsibilities of merchants, payment facilitators and the marketplace in online payments, as well as the benefits and drawbacks of each model for businesses. We explore the challenges fraud creates for merchants, the importance of technology in mitigating these challenges, and future plans for seamless payment infrastructure.
Financial Forecast 2024: What's Ahead?

Financial Forecast 2024: What's Ahead?

In this episode of Predict 2024, Edward Harding, Director of Global Strategic Partnerships at Mambu, discusses the upcoming webinar on Mambu’s 2024 partner predictions report, highlighting how trends are shaping financial services and influencing strategies in the year ahead. We learn about Mambu's partnership-driven approach to industry challenges, examine rising trends such as embedded finance and generative AI, and get a preview of what to expect from the webinar on March 6th.
Harmonizing AI solutions in the fight against fraud

Harmonizing AI solutions in the fight against fraud

Yogesh Patel, CTO, Outseer, discusses how the evolving capabilities of artificial intelligence are reshaping fraud detection and prevention, particularly in banking. We delve into the difference between generative and predictive AI and their surprising applications, such as the rising impact of predictive AI on payment fraud mitigation, and generative AI for operational efficiency and case marking. Additionally, we discuss the importance of data quality in AI for algorithms, feature engineering, and model adaptability, to optimize security against fraudulent behaviours and enhance model efficiency. Watch to learn more about how AI will impact the future of fraud.
The long read
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Dominique Dierks

5 common types of data breaches in the financial sector

Dominique Dierks - Content Manager - Finextra
Discussion
Are fintechs destined to become banks?
Scott Hamilton

Scott Hamilton

  Very thorough analysis, and thank you Vladimir Krasik, for sharing it. I'm sure there are a few more questions still to be answered in this discussion. I am particularly wondering about the impact of the apparent dissolution of the Goldman/Apple partnership. I know it's just one example, and maybe not the best one, but will other high-flying fintech/banking partnerships grab such headlines, or scrutiny, as it has? And how will they be more fruitful for both parties? Supposedly, the bad blood is due to the link-up's reported unprofitability for Goldman and perhaps also to Apple's own discontent with the arrangement. What's next for Apple, a link with a larger, more established player in cards or retail banking? Also, I think a continuing question for many fintechs is how they get paid, i.e., if they provide 'free' services to customers, where is the revenue coming from to do so? In traditional banking models, it's from the spread between deposit and lending rates, fees for services, and in the case of credit card issuers, from interchange and related fees on purchases. You outline well how Wise and others decided that accounts and lending (cards especially) were an excellent opportunity for growth beyond their initial product offerings. For a fintech becoming a bank - and especially for its present and future investors - this may be looked at as a more stable opportunity for growing revenue as opposed to building volumes on a potentially 'teetering' or vulnerable source of income, like credit card interchange (under significant attack recently in the courts), subscription fees, advertising revenue, or sale of customer data to others.

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Lloyds Bank cuts risk dept headcount
Ketharaman Swaminathan

Ketharaman Swaminathan

  Kudos to Lloyds Bank. I don't recall any other bank anywhere in the world taking such a public and explicit stance on what has always been well known in business: Mitigating risk does not pay the bills. Screening for risk is okay in loan approval, credit card authorization, and other transactional areas but too much risk sensitivity blocks strategic transformation. Most often, risk professionals lack the competence to analyze risk in the TO-BE transformed state in a rigorous manner, so they lean towards blocking the transformation as CYA strategy. Too much risk sensitivity is one big reason why banks have lagged fintechs in product and UX. I'm not saying banks should mimic fintechs' products and UX but, if that's what they want to do, downsizing risk department headcount is the way to go.

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Lloyds Bank cuts risk dept headcount
Robert Burch

Robert Burch

  Completely agree Peter.  This is either a very odd decision or a badly worded announcement.  Knowing the risk of doing anything is vital.  That knowledge should then be used to calculate the reward necessary to justify the risk.  If the reward looks unachievable, then the risk should not be taken.

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Lloyds Bank cuts risk dept headcount
Peter Bayley

Peter Bayley

  There are many reasons to cut jobs in Risk - automation, improved detection capabilities, restructure between functions, globalisation etc. etc.  could all be legitimate. But positioning a reduction in staff because Risk is seen as a 'blocker' to strategic change, sounds like a mangement issue, not a departmental structure one. If process is poor, then you invest in the systems and capabililities; not remove the folks who have been forced to work to poor process and position them as 'blocking' profitability. Risk should always be a challenge function.  They should be pointing out the risks from change, as well as those from the status quo.  Risk is the function that asks the emperor what he/she has done with his/her clothes, when everyone else is congratulating them on their elegance and style. Either there is much more to this story than is being reported here, or Lloyds is taking a somewhat odd  position.  I have no idea what Lloyds' new strategy is - but perhaps they should be checking whether things havent turned a little chilly around the rear end....

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Featured
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Worldcoin banned in Portugal over privacy concerns

Worldcoin banned in Portugal over privacy concerns

Russia-linked fintechs hit with US sanctions

Russia-linked fintechs hit with US sanctions

Swift selected to build national confirmation of payee service in Australia

Swift selected to build national confirmation of payee service in Australia

JPMorgan plans major roll out of biometric payments

JPMorgan plans major roll out of biometric payments

The long read
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Andersen Cheng

Why financial institutions must move quicker on quantum

Andersen Cheng - Chairman, Post Quantum
Elsewhere...

  1. The Guardian

    Sim-swap fraud: How your bank account can be emptied by phone

  2. BBC

    Identity theft: Belfast man speaks of stress after scam

  3. BBC

    Crypto scam: Man scammed out of six-figure sum gets money back

  4. The Independent

    Fraudsters use deepfake technology to trick employee into paying millions

  5. This is Money

    Thirteen banks back our campaign to force tech giants to crack down on fraud

The long read
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Scott Hamilton

Why don’t Canadians trust data providers?

Scott Hamilton - Contributing Editor, Finextra