Sarah Beth Felix’s Post

Sarah Beth Felix asks the same question I have ... On July 16, 2024 FinCEN, OFAC, and the FBI issued a joint notice titled “Timeshare Fraud Associated with Mexican-based Transnational Criminal Organizations” - https://lnkd.in/ePaZK3Ga The Notice included this: “Given the transnational nature of illicit activity related to timeshare fraud in Mexico, FinCEN also encourages U.S. financial institutions to continue to use, and potentially expand, their existing processes to collect and share information with foreign financial institutions in furtherance of investigations that involve cross-border activity.” That excerpt included a citation, Footnote 40: See, e.g., FinCEN, “Prepared Remarks of FinCEN Director Andrea Gacki During the SIFMA AML Conference” (May 6, 2024) at https://lnkd.in/gYAk7EYk I am not aware of any authority – law or regulation – that allows US-based and regulated financial institutions to share information with foreign financial institutions in furtherance of investigations that involve cross-border activity. And I’ve read Director Gacki’s May 6, 2024 speech: there is nothing in it that refers to US-based and regulated financial institutions being allowed to share information with foreign financial institutions in furtherance of investigations that involve cross-border activity.

Hip to the latest Nacha rule update? 👀 "When fraud is detected, the originating depository financial institution (ODFI) can request the return of the payment, the RDFI can delay funds availability (within limits), and the RDFI can return a suspicious transaction, without waiting for a request or a customer claim, per the release." I applaud the effort but am eager to see this in practice. 👏 Will FIs be able to speak to each other faster than #fraudsters are able to manipulate account information and withdraw funds? ☠ If you don't catch a #businessemailcompromise for 2 months, will this really stop fraud from taking place? 🤷♂️ 🐢 Finally, a base level framework for #ACH #monitoring, but still no #liability shift... If you're worried about #ACH #Fraud but don't have the time to become a clearing house expert, the answer to the fraud problem here remains the same: REPAY - Realtime Electronic Payments. We take #ACH #Fraud #Protection a step further and we DO accept liability for any payments sent to the wrong place. With our #ML driven tech and the scale of our platform: we don't reduce fraud, we eliminate it. And that's a check you can take straight to the bank! 💸 -- And hey, I'm Dylan. If these problems resonate with you or if you're still stuck in a check-run, give me a shout for tips, tricks, tools, and advice! 🚀 #repay #nacha #ach #fraud #b2b #payments #VPAAS

Faster fraud; fact or fallacy? FRB is contending with member FIs reluctance to FedNow because FIs see faster payments as cause for fear to faster fraud. With innovation comes the need to increase knowledge about the new innovation and to apply known knowledge about risks to contemplate if the risk would exist in the new environment or how will the new environment facilitate known risks to morph and become new risks. The task at hand for generalist bankers is to find ways to learn and learn fast about the new environmental risks FedNow presents. Therefore, the FRB's move to add more fraud tools, must also include knowledge training about the fraud tools to their member FI's. #fednow #fraudcontrol #riskmitigation #instantpayments

Regardless of young or older, everyone needs to vigilant to falling victim to fraud. One of the points to news reports is for the community to gain wisdom from the news, wisdom that could be leveraged to avoid the misfortunes experienced by others. Wise older people know that by collecting the failures of both your own and of others, provides a database of what one should avoid doing. "The survey included responses from customers at 32 financial institutions, including American Express, Barlays, JPMorgan Chase, Goldman Sachs and Wells Fargo, among others, J.D. Power said. U.S. consumers lost $2.7 billion to impostor scams in 2023, roughly the same amount that was lost in 2022, but that figure was up from $2.1 billion in 2021. Regulators and lawmakers have singled out peer-to-peer payments platforms like Zelle — which is owned and operated by seven large banks — as the facilitators of such scams." #fraud #risksofinstantpayments #banking #crimes

The Hong Kong Securities & Futures Commission (SFC) has issued warnings to the public of 2 suspected virtual asset-related fraud EDY & HKCEXP, with victims unable to withdraw funds or required to pay high fees for withdrawals. Read - https://lnkd.in/gyv4QhpY follow Caproasia | Driving the future of Asia The Hong Kong Securities & Futures Commission (SFC) has issued warnings to the public of 2 suspected virtual asset-related fraud EDY & HKCEXP, with victims unable to withdraw funds or required to pay high fees for withdrawals.  Hong Kong SFC on EDY: “The Securities and Futures Commission (SFC) today warns the public of suspected virtual asset-related fraud involving a purported virtual asset trading platform operating under the name of “EDY”.  EDY falsely claims to be affiliated to a financial institution in Hong Kong and a digital token system developed by another financial institution, when in fact they are not associated.  Victims have reported that they are unable to withdraw funds from the platform after making deposits.  While the platform’s website is now inaccessible, the public should beware that EDY may create new ones with similar domain names to mislead investors.  Hong Kong SFC on HKCEXP: “The Securities and Futures Commission (SFC) today warns the public of entities operating under the name of “HKCEXP” for suspected virtual asset-related fraud, with victims reporting difficulties and payment of exorbitant “tax” to process withdrawals.  HKCEXP falsely provided a fake Hong Kong address on its website to mislead investors. The SFC suspects it has disseminated other false and misleading information about itself and its business as being an SFC-registered company.”

😬 Heads up FI leaders, cautionary tale from Erie County... 🚨 A shocking revelation from Erie County: Over $326,000 lost to a counterfeit check. As you can imagine this is making FIs all over the county and state sit up and take notice. ▪️ So what happened? Erie County got hit by a check scam, losing $326K when a check got swiped and copied, then paid out to a fraudster. ▪️ How was it discovered? The fraud was uncovered during an Erie County Comptroller's audit - over a year later - revealing the check's interception and duplication, with minor alterations. ▪️ The aftermath: Erie County Comptroller Kevin Hardwick expressed uncertainty about recovering the stolen funds but mentioned filing a claim with the county's insurance, subject to a $25,000 deductible. ▪️ The auditor recommended implementing Positive Pay and/or issuing ACH payments to prevent future fraud. The Erie County situation emphasizes an essential need for FIs and business account holders like Erie County to shift from reactive to proactive security measures. 🛡 So what can be done? AFS can help. In the wake of such threats, products like TrueChecks and Positive Pay by AFS would have helped to prevent such a massive mistake. Why wait for losses to occur to implement protections? Introducing TrueChecks and Positive Pay by AFS: ✅ TrueChecks leverages the collective power of consortium data, allowing FIs to detect and prevent check fraud by tapping into a vast network of historical, shared intelligence. ✅ Positive Pay by AFS acts as a critical backstop, providing an additional layer of security that verifies checks before processing. It's the peace of mind every business account holder and their FI needs. 📕 Schedule a demo https://lnkd.in/gDUhSnry #FraudPrevention #FraudDetection #CheckFraud #CreditUnion #Banking #FinTech #PositivePay #PositivePaybyAFS

📣 Financial Crimes Enforcement Network, US Treasury came out with a Financial Trend Analysis report on Elder Financial Exploitation (EFE) today -- 👉 in June 2022, FinCEN put out an #EFE advisory and this analysis is based on BSA reports that either include that advisory as a citation, or checked "Elder Financial Exploitation" (you can also check "fraud") 👉 not all FIs are using these terms in their #BSA filing as made clear by the fact that 2 banks reported 33% of all of the filings in the dataset 👉 the #analysis is based on a #data set of 155,415 incidents representing $27 billion 👉 80% were elder #scams (loss of funds to a stranger or imposter), 20% elder #theft (theft by a trusted person) - average suspicious amounts were higher for scams than theft, too ($129k vs $98k) 👉 the majority of #scam filings are account-takeover related and victims most commonly used wire transfers and checks to move funds 👉 criminals are still relying on unsophisticated methods like compromised #PII, guessing #passwords, and #phishing attacks 👉 BSA filers noted that victims are often avoid #bank personnel - a clear sign of possible abuse 👉 #crypto ATMs made up 43% of the crypto related EFE SAR filings - we see this in the AARP Fraud Watch Network reports - crypto ATMs are the hot new(ish) method for scamming older adults... 📚 Read the report here: https://lnkd.in/ekFrFQz3

Fidelity's Technical Snag Causes Frustration Among Customers, Results in Unexpected Deposit Holds ——————— Fidelity Customers Frustrated with Week-Long Deposit Holds Fidelity customers who use a certain type of account have discovered cumbersome deposit restrictions in recent days. In some cases, folks say they are encountering weeks-long holds for deposits to clear. Why the Hold-Up? Here's what's happening: The financial services company has recently seen a surge in fraudulent activity, which meant it had to take “immediate steps to address the issue,” a spokesperson said in an email. While Fidel... Read Full Article: https://lnkd.in/eexHFfwg #Banking #access #account #banking #cashmanagement #CMA #customers #deposit #Fidelity #finance #fraud #frustrated #hold #money #Prevention #restrictions #scam #Security

"Fraud, not surprisingly, is a key concern. In fact, 36% of FIs admit they do not know how to handle refund requests from victims of authorized transaction fraud. In a twist on the old saying about gift giving, for the FIs it may be better to receive that give, at least for the time being:  In one study by the Faster Payments Council, as many as 70% to 80% of FIs in the U.S. estimate they will be able to receive instant payments by 2028; roughly half of that percentage say the same about sending instant payments."

JPMorgan Begins Suing Customers In 'Infinite Money Glitch': JPMorgan Chase is suing customers who exploited an ATM glitch that allowed them to withdraw funds before a check bounced. CNBC reports: The bank on Monday filed lawsuits in at least three federal courts, taking aim at some of the people who withdrew the highest amounts in the so-called infinite money glitch that went viral on TikTok and other social media platforms in late August. [...] JPMorgan, the biggest U.S. bank by assets, is investigating thousands of possible cases related to the "infinite money glitch," though it hasn't disclosed the scope of associated losses. Despite the waning use of paper checks as digital forms of payment gain popularity, they're still a major avenue for fraud, resulting in $26.6 billion in losses globally last year, according to Nasdaq's Global Financial Crime Report. The infinite money glitch episode highlights the risk that social media can amplify vulnerabilities discovered at a financial institution. Videos began circulating in late August showing people celebrating the withdrawal of wads of cash from Chase ATMs shortly after bad checks were deposited. Normally, banks only make available a fraction of the value of a check until it clears, which takes several days. JPMorgan says it closed the loophole a few days after it was discovered. The lawsuits are likely to be just the start of a wave of litigation meant to force customers to repay their debts and signal broadly that the bank won't tolerate fraud, according to the people familiar. JPMorgan prioritized cases with large dollar amounts and indications of possible ties to criminal groups, they said. The civil cases are separate from potential criminal investigations; JPMorgan says it has also referred cases to law enforcement officials across the country. "Fraud is a crime that impacts everyone and undermines trust in the banking system," JPMorgan spokesman Drew Pusateri said in a statement to CNBC. "We're pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they're held accountable." Read more of this story at Slashdot.