Payments are moving away from tangible currency to so-called new economies, where value relies more on reputation than currency. Venues such as Facebook facilitate e-commerce via new economies. But as with any change in the payments scheme, industry experts expect these new economies to be accompanied by new risks.
"You need to understand how you are currently using social media in your organization, and how you intend to use it, before you can define policies around social media," says Erika Del Giudice of Crowe Horwath.
Nessa Feddis of the ABA says increased investments in technology at the bank and consumer levels have fueled confidence in online banking. "I think the reason you see an uptick in use here is because the channel is more secure."
The arrests of three Seattle-area men for their involvement in two separate ATM-skimming schemes highlight technological and social vulnerabilities that international fraudsters have learned to exploit with ease.
Provisions in legislation introduced by Sen. Richard Blumenthal, D-Conn., target companies that store online data for more than 10,000 people to assure their customers' personally identifiable information is protected.
A new report to Congress about major healthcare information breaches shows that federal officials have yet to complete their investigations of corrective actions taken in the wake of 70 percent of incidents.
The Treasury Department's Office of Terrorism and Financial Intelligence has worked to prevent anti-money laundering and illegal cash flow from reaching the hands of terrorist groups, but more needs to be done to further mitigate risks, says Treasury Assistant Secretary Daniel L. Glaser.
Three Seattle area men have been arrested for their alleged involvement in separate ATM skimming schemes that drained more than half a million dollars from retail customer accounts in at least six states.
"Everyone from the Fed down knew about this and chose to let it go," says mortgage fraud expert L.T. Lafferty. "As a result of that regulatory complacency, the market continues to be plagued with fraudulent activity."
"Our proposal would give judges the authority they need to adequately punish serious offenders and to make these penalties commensurate with the same type of conduct occurring offline," Associate Deputy Attorney General James Baker tells Congress.