Payment Fraud Attacks Increased by 70% in 2021
A new report released by a global digital trust and safety organization found that fraud attacks in the digital payments space increased by 70% in 2021. The Q1 Digital Trust & Safety Index surveyed global payments users and found an increase in fraud schemes, particularly aimed at alternative digital wallets and cryptocurrency exchanges. There was also an increase in fraud schemes aimed at “Buy Now, Pay Later” (BNPL) companies, which showed a 54% increase in fraud.
Art Dealers: There’s No Money Laundering in the Art Business
An open letter signed by members of the Confédération Internationale des Négociants en Œuvres d’Art (CINOA), is pushing back against the notion that money laundering runs rampant in the art business. The letter cited a recent U.S. Treasury report that investigated the link between the financing of terrorism through the buying and selling of artwork. The letter noted that the Treasury report found that industries such as real estate and the opening of shell companies are more susceptible to money laundering than the trade of art.
International Task Force Against Oligarchs and Russian Elites Kicks Off
A coalition of Western countries has joined together to track the assets of Russian oligarchs and elites in an effort to seize or freeze property and funds that may be used to fund the Russian attack on Ukraine. The Russian Elites, Proxies and Oligarchs (REPO) multilateral task force brings together members from Australia, Canada, the European Commission, Germany, Italy, France, Japan, the United Kingdom, and the United States who will work together to “collect and share information to take concrete actions, including sanctions, asset freezing, and civil and criminal asset seizure, and criminal prosecution,” according to the US Department of the Treasury.
Banks Forced to Adapt on Heels of Russian Sanctions
U.S. banks, now bound by financial sanctions against Russia, are treading carefully to ensure they comply with a host of new rules put forth by the U.S. government. Sanctions have increasingly been named one of the most important tools at the disposal of countries to combat wrongdoing and facilitate de-escalation of conflicts and prevent further attacks by foreign entities on other countries. Due diligence of third parties is a major part of all companies, including financial institutions’ ability to maintain compliance with newly implemented sanctions.
Experts Predict Cyberattacks Against AI Models in Banking Sector
Financial systems and banks that use AI and machine learning models are under threat of cyber attacks, according to U.S. authorities. The cyber division at the Federal Bureau of Investigations is warning financial institutions around the world of the threat of Russian cyberattacks, which are particularly dangerous to banks that rely heavily on AI and machine learning algorithms to detect attacks. Banks are increasingly using AI models to reduce headcount, but because the systems as guiding authorities are in very early stages, they are more susceptible to attacks.
DOJ issues further guidance, warnings on ephemeral messaging apps
Federal appeals court upholds 5.6B USD Visa and Mastercard settlement
The DOJ updates its guidance on corporate compliance programs