Chinese Regulator Fines Luckin, 43 Other Companies In Fraud Case

PYMNTS

China's top regulator, the State Administration for Market Regulation, has fined coffee chain Luckin Coffee and other firms that helped it inflate its sales and expenses last year, The Wall Street Journal reported. The regulator said on Tuesday (Sept.

UK Regulator Tackles Authorized Push Payment Fraud

PYMNTS

In an effort to help authorized push payment (APP) fraud victims, The U.K.’s FCA Executive Director of Strategy and Competition Chris Woolard said, according to FT : “The FCA takes APP fraud and the harm it causes to consumers very seriously. Now victims of APP fraud can make a complaint to the PSP receiving their payment, and if they’re not satisfied with the outcome, can refer their complaint to the Financial Ombudsman Service (FOS).”

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5 Startups Rebooting Regulation

Bank Innovation

The rise of insurtech is running parallel to the rise of regtech, as financial firms and startups apply artificial intelligence, blockchain, and other technologies to the dizzying world of financial regulation. Changing the face of regulation for a fresher, more transparent take isn’t exactly easy–as the OCC is finding out–but we […]. Fintech has another cousin.

In a digital world, regulators and innovators need to team up to beat fraud

Payments Source

Close collaboration between leading payment innovators and regulators could help regulators better understand the direction the industry is headed, says Arkose Labs' Vanita Pandey. Risk Mobile payments Fraud Digital payments Cash

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Device ID Helps Fight Holiday Fraud Amid Record Online Shopping

PYMNTS

At a time when COVID-19 has seen global eCommerce and digital traffic grow by nearly 70 percent, security experts have braced for a commensurate surge in online fraud as the holiday shopping season continues. At the center of all these regulations is the consumer,” he said.

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Top 5 Regulator Hot Topics During COVID-19 and Beyond

Abrigo

Regulators have determined there are five top hot topics that institutions should expect during their next exam. Early communication with your regulator is key to understanding the struggles and successes of managing a BSA/AML program during a global pandemic. BSA Rules and Regulation.

Top 5 Regulator Hot Topics During COVID-19 and Beyond

Abrigo

Regulators have determined there are five top hot topics that institutions should expect during their next exam. Early communication with your regulator is key to understanding the struggles and successes of managing a BSA/AML program during a global pandemic. BSA Rules and Regulation.

Chinese Regulators Prepare To Crack Down On Luckin Coffee

PYMNTS

Regulators in China are preparing to move against once-hot Luckin Coffee Inc. In July, Luckin reported it had concluded an internal investigation into the fraud, and that – among other actions – it would fire a dozen employees thought to have knowledge of it.

Brussels To Investigate German Regulator Over Wirecard

PYMNTS

He also said the EU should investigate whether the German regulator broke the law if ESMA determines BaFin failed to uphold the bloc’s financial reporting rules. Security & Fraud BaFin Brussels EU Federal Financial Supervisory Authority fraud Germany News oversight Regulator What's Hot WirecardThe Wirecard scandal surrounding the German payment processor missing $1.2 billion has spilled over the border to Belgium.

Report: Overcoming ID Fraud’s Technology Blind Spots

PYMNTS

A recent study from PwC found that 47 percent of companies had experienced fraud at least once in the past two years, with a grand total of $42 billion in funds stolen over this period of time. Fighting The Rise Of Corporate Banking Fraud With AI And Machine Learning.

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5 Ways Your Transaction Monitoring System Can Detect COVID-19 Related Fraud

Abrigo

Key Takeaways COVID-19-related fraud are not new typologies; they just have a new spin. Adjusting your velocity scenarios can help detect money mule scams and check fraud. . COVID-19-related fraud schemes are escalating at an alarming rate. BSA Rules and Regulation.

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5 Ways Your Transaction Monitoring System Can Detect Covid-19 Related Fraud

Abrigo

Key Takeaways BSA officers need to stay aware of emerging fraud trends that are a result of the pandemic. Consider a risk-based lookback for your PPP portfolio to fight fraud. COVID-19-related fraud schemes are escalating at an alarming rate. BSA Rules and Regulation.

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Red Flags for COVID-19 Related Fraud – What You Need to Know

Abrigo

Key Takeaways FinCEN has released three COVID-19-related advisories that remind financial institutions to stay alert to increasing fraud trends. Adjust your scenario thresholds and ensure your front line staff is aware of these fraud red flags to help detect and deter COVID-19-related fraud.

Fraud 195

Deep Dive: Why The Pandemic Is Pushing MENA Regulators To Upgrade Open Banking, Privacy Laws

PYMNTS

Consumers and businesses have been moving online in recent years, and regulators from the European Union to the Middle East and North Africa (MENA) region have worked to keep up with this migration.

SEC Files First ICO Fraud Charges Against Canadian Organizer

Bank Innovation

The Securities and Exchange Commission, or SEC, has filed charges of fraud against the organizers of a $15 million ICO, the agency announced yesterday. The regulator filed charges against Canadian organizers Dominic Lacroix and Sabrina Paradis-Royer, as well as a firm named PlexCorps, for violating U.S. Cryptocurrency Exclusive cryptocurrency Financial Regulation fraud ICOs online fraud SEC

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DOJ Seizes $24M In Crypto As Part Of Brazilian Internet Fraud Probe

PYMNTS

The seizure stemmed from a cryptocurrency fraud scheme being investigated by Brazilian federal police called Operation Egypto. They reportedly held the funds in a way that would've mandated regulation under Brazilian law, with which Fagundes and the others allegedly didn't comply.

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Prosecutors Target Loosely-Regulated Business Lending Sector

PYMNTS

Merchant cash advance companies avoid much of the regulation banks face by claiming that rather than giving loans to businesses, they’re paying the business cash now in return for a cut of future revenue. Security & Fraud FTC loans News SEC small business What's Hot

How Dropbox Fights Fraud

PYMNTS

Fraud continues to increase in many areas, despite extensive attempts to bring it to heel. Retail fraud attempts have doubled year over year, for example, while account takeover (ATO) fraud losses recently hit $14.7 billion , and phishing attacks now comprise 30 percent of all fraud attempts. Developments From Around The World Of Digital Fraud. Fraud is on the rise in a variety of forms. Card-not-present (CNP) fraud, for example, rose from $4.5

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Deep Dive: How FIs And Merchants Are Pushing Back Against Push Payment Fraud

PYMNTS

The number of real-time payments has risen dramatically in recent years, and APP fraud has grown alongside it. Bad actors typically perpetrate APP fraud in several ways. APP Fraud Ramps Up. Fighting Back Against APP Fraud.

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Deep Dive: How Overlapping Regulations And Fraud Risks Complicate SMBs’ B2B Cross-Border Payments

PYMNTS

A recent survey found that one-third of businesses were concerned about fraud in their cross-border payments, with an additional 26 percent worried about data security. Yet, businesses all too often rely on methods such as wire transfers, which are more susceptible to fraud. Cooperation between regulators is one of the most important steps to easing B2B cross-border payments, as even banks within the same country often have wildly different compliance standards.

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PPP Fraud Reveals New Need For Banks To Use Geolocation Data

PYMNTS

Government-benefits fraud runs at about 10 percent even during normal times, but now that the pandemic has exponentially increased U.S. Labor Department projects fraud is having a potential $26 billion impact on state unemployment insurance funds. .

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Crypto Regulation To Tighten Scrutiny On Money Laundering

PYMNTS

This means Libra is likely to see more scrutiny from regulators as the project takes shape and eventually launches. That sentiment was reflected in part by the Bank for International Settlements (BIS), which said this past weekend that there should be coordinated regulations on cryptocurrencies. As the Financial Times reported, some regulators are pointed toward a multi-agency approach to cybersecurity that would test banks through a coordinated effort.

Crypto firms shouldn't fear being regulated as securities

Payments Source

Securities laws, in spite of their shortcomings, exist for very good reasons: To regulate the fair exchange of units of ownership, to protect individuals from fraud or exploitation, and to identify bad actors and hold them accountable. Risk Digital payments Fintech regulations Cryptocurrencies Securities

Libra Forces Cryptocurrency Regulators To Reexamine Procedures

PYMNTS

Facebook’s Libra project has renewed focus on how cryptocurrencies are regulated, with current rules on the sector patchy and varying from country to country. The latest AMC/KYC Tracker examines current efforts to stop money laundering, fight fraud and improve customer identity authentication in the financial services space. Regulators are increasingly taking note, with some seeking to improve AML and anti-tax evasion efforts by prohibiting anonymous crypto transactions.

CFTC Ups Crypto Regulation In 2018

PYMNTS

According to The Wall Street Journal , the federal derivatives-market regulator also handed out around $900 million in penalties, higher than the amount in five of the eight years of the Obama administration. They’ve tried to clarify some of their emphases — we know that cryptocurrency fraud is an issue, manipulation, insider trading is an issue, and they’re very focused on spoofing,” said Gary DeWaal, special counsel at Katten Muchin Rosenman and a former CFTC enforcement lawyer.

Bank Regulators Probe Amazon Cloud

PYMNTS

Regulators’ influence over non-banks is limited, and banks are left to vet their own vendors. Bank regulations hadn’t “sufficiently modernized to accommodate cloud and other innovative technologies,” according to a U.S. Security & Fraud Amazon Big Tech federal reserve investigation News oversight tech giant U.S.

Can Regulating Wearables Protect Data Privacy?

PYMNTS

In the April Intelligence of Things Tracker , PYMNTS explores the latest security efforts from providers to crack down on fraud, and the emerging use cases where IoT tech can be applied — if consumers are willing to give it a chance. Another recently introduced piece of legislation aims to protect individuals by regulating facial-recognition cameras.

Before they regulate AI, Congress needs to define it

Payments Source

As lawmakers meet this week to discuss artificial intelligence, they should work with regulators to create universal and workable definitions. Artificial intelligence Fintech regulations Machine learning Data privacy Data privacy rules Underwriting Digital banking Credit scores Fraud detection Fraud prevention Senate Banking Committee NIST Kabbage

CFPB Rolls Out Innovation Regulator Network

PYMNTS

A network to better coordinate financial innovation among federal and state regulators is being launched by the Consumer Financial Protection Bureau (CFPB) in partnership with several states, the agency said in a press release. The network will also advance “regulatory certainty” for innovators and stay abreast of changes in the market while helping reduce fraud, discrimination and deception. State regulators in every state were invited to join. .

Wirecard Loses $8.3 Billion in Three Days on Fraud Allegations

Bank Innovation

Wirecard AG fell the most in more than a decade on Friday after a report that a law firm found evidence of alleged forgery, the latest fraud allegations to beset the digital payments company. Bloomberg Cards Compliance Exclusive Lending Mobile Online Open Fintech Premium Retail Risk Security bank regulation fraud Wirecard

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Source: German Regulators Failed To Take Action On Wirecard Red Flags

PYMNTS

Numerous regulators had discussions over the years about tightening supervision on Wirecard or adding it to a list of potential subjects for more investigations, but all decided against it, Reuters reports. But before all that, in 2017, German financial regulator BaFin and central bank Bundesbank thought about identifying Wirecard for more supervision, but ultimately declined. Putting it under the umbrella of financial firms would have put the whole company under bank regulation.

UK Regulators’ Data Violations Fines Top $126.5M 

PYMNTS

Regulators in the U.K. The General Data Protection Regulation (GDPR) is intended to protect personal information and imposes steep fines if data is exposed or provided without user consent. The regulation is enforced by data protection divisions throughout the 28-member European Union. Ireland has the biggest responsibility as the head regulator for Silicon Valley big tech like Facebook. And you lose credibility as a regulator if you’re blown up on appeal.”.

UK Regulators Want First-Time Payments Delay To Avert Fraudsters

PYMNTS

legislators are calling for a mandatory 24-hour waiting period on all first-time payments between bank accounts as a way to reduce fraud, Reuters reported on Friday (Nov. Fraud is the second most common crime type in England and Wales, and the committee wants regulators to get tougher on fraudsters. Money transfers that happen in seconds offer little time for customers and banks to even know that fraud has taken place, the report said.

European Regulators Expand Scrutiny On Data Practices – And Bots

PYMNTS

There are other state versions of the agency, such as in Pennsylvania and New York, where efforts are focused on fighting consumer fraud and ensuring that firms comply with state laws. Regulation bots California CFPB Data Breaches Data Regulations data sharing Editors' Picks EU fraud GDPR india News regulation Regulators regulatory tracker Security Social MediaIt’s a new year, and in Europe, an expansion of scrutiny and laws governing data sharing.

Banks and regulators also bear blame for Facebook’s ‘friendly fraud’

Payments Source

Unintentional friendly fraud happens more often as a result of poor consumer and poor issuer (bank) education, and a lack of consistently applied policies, according to Monica Eaton-Cardone, COO of Chargebacks 911. ISO and agent Payment fraud Chargebacks Payment processing