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260

Monzo says it wasn’t storing ‘some’ customer PINs correctly, but has now fixed the bug

via TechCrunch

Monzo, the fast-growing U.K. challenger bank that recently soft-launched in the U.S., is disclosing a potential, albeit relatively limited, security oversight that saw customer PINs stored incorrectly within the company’s internal systems. (more…)

Banks, Mobile-first banks, Security

August 5, 2019

330

Why N26 Is Keeping Fraud Top Of Mind In The US Market

via PYMNTS

Meeting a consumer’s banking needs requires FIs to think locally — but when it comes to fighting fraud, it pays to think globally. That’s why FIs need to stay ahead of fraud trends both domestically and internationally, says Nicolas Kopp, U.S. CEO for German challenger bank N26. In the latest Digital Fraud Tracker, Kopp discusses how N26 is using customer data from 24 countries to better protect users against fraud attacks as it enters the U.S. market. (more…)

AI / Machine Learning / Big Data, Banks, Security

July 26, 2019

251

Why Anti-Money Laundering Should Be a Top Priority for Financial Institutions

via Visual Capitalist

The to-do list for any financial executive is surely daunting. From navigating technology changes to managing talent effectively, there’s many initiatives competing for attention.

One issue that’s been in the headlines for many years is anti-money laundering (AML). When criminals are able to successfully hide the illicit origins of their cash, both the financial institution and society suffer. So, what makes AML more important now than it has been in the past? (more…)

AI / Machine Learning / Big Data, Security

July 26, 2019

222

BASIS ID improves the experience of the KYC procedure

via TechBullion

At the end of July 2019, the leading KYC service provider in Asia and Europe, BASIS ID, will release a new widget, designed to improve user experience of interacting with the KYC procedure. What does this mean for users and what can it offer to customers?

A new widget for going through the verification process was created to increase the conversion during the KYC procedure. This means that it must solve two problems. Firstly, it must be simple, so that users do not abandon the process in the middle because they don’t understand what is required from them or what to expect from this procedure. Secondly, it must be pushing users to move forward in the process of providing data, so that they would convert into customers of various services instead of people, who have dropped out during KYC. This way service providers can be certain that they spend resources on acquiring real users. (more…)

Security

July 25, 2019

3761

Trulioo Expands Verification Capabilities Internationally

via PYMNTS

Trulioo, which focuses on global identity verification, said Wednesday (July 10) that it now is able to verify customers in new countries, including Bahrain, Iceland, Qatar and Georgia.

The company said in a press release that it is able to verify customers in those countries through GlobalGateway, its marketplace of identity data and services. (more…)

Fintech news, Security

July 10, 2019

303

Six Nordic Banks Team To Take On AML Issues

via PYMNTS

Six major banks in the Nordic region will form a customer checking center to help combat money laundering and improve the reputation of the area’s financial institutions, according to a report by Reuters.

The banks involved will be Danske Bank, Swedbank Handelsbanken, Nordea, SEB and DNB. The banks said the KYC Utility would gather know your customer (KYC) checks to start with at large and medium-sized companies in the region, and also start offering commercial services.

Money laundering is a big concern for the region after Danske Bank and Swedbank were implicated in scandals that cost them both billions in their value on the market.  (more…)

Banks, Security

July 5, 2019

1166

SmartSearch pioneers first online AML business credit checks

via FinTech Futures

SmartSearch says it is currently the only organisation in the UK with the ability to verify individuals and companies in the UK and internationally, all in a single platform via a browser or API, with full sanction, politically exposed persons (PEP) and adverse media screening and then ongoing monitoring. (more…)

AI / Machine Learning / Big Data, Open Source/ API, Security

July 3, 2019

1240

AML/KYC’s Data Confidence Crisis

via PYMNTS

The last thing anyone wants to hear from a financial organization is that the people tasked with risk management are feeling less than confident about their ability to do the job — because they aren’t sure if their data is good. If the risk experts aren’t feeling confident, it is difficult to know how anyone else in an organization will.

However, in flipping through the latest edition of the PYMNTS AML/KYC Tracker, a collaboration with Trulioo, there is a lot of data to suggest that this is the situation in many organizations.

About 29 percent of banks have not implemented know your customer (KYC) tools or external data providers across the customer life cycle. In addition, 69 percent of crypto exchanges lack “complete and transparent” KYC and customer due diligence processes, and 71 percent of trade providers have cited compliance limitations and inadequate KYC practices as key factors in driving trade finance rejection rates. Perhaps most worryingly, 63 percent of anti-money laundering (AML) compliance professionals said they lack confidence in their data. (more…)

Banks, Security

June 20, 2019

587

Thai banks set for facial and fingerprint biometric verification use in Q3

via Biometric Update

Customers of the Bank of Thailand will be able to use biometrics for identity verification when opening deposit accounts by the third quarter of this year to boost security, build consumer confidence, and improve access to financial services, according to the Bangkok Post.

The central bank is planning to gradually open up biometric technology to financial institutions for electronic know your customer (e-KYC) processes. Technology for facial and fingerprint recognition is being tested in a regulatory sandbox, with the tests scheduled for completion in Q3, according to Siritida Panomwan Na Ayudhya, assistant governor of the bank’s payment systems policy and financial group. (more…)

Banks, InspirAsia, Security, Thailand

June 3, 2019

763

Japan to strengthen crypto AML, KYC laws and look hard at exchanges

via CoinGeek

Exchanges that are a little too lax on their anti-money laundering (AML) and know your customer (KYC) protections will need to start paying more attention. Japan, one of the world’s leaders in cryptocurrency regulation since the fall of Mt. Gox, looks to focus on these areas even more this year in an effort to grow up the industry.

Japanese outlet Nikkei reports the country’s Financial Services Agency (FSA) is “taking a hard look at cryptocurrency exchanges.” This comes as a G20 meeting will visit the country on June 28 and 29, and the FSA is expected to undergo an inspection by the global body’ Financial Action Task Force (FATF) to see how its performing. (more…)

Banks, InspirAsia, Japan, Security

May 23, 2019

518

Challenger bank N26 ordered to bolster money laundering safeguards

via American Banker

The German smartphone bank backed by billionaires Peter Thiel and Li Ka-shing has been ordered to bolster safeguards against money laundering and terrorist financing.

Germany’s financial regulator told N26 to “take appropriate internal safety measures” and “comply with general customer due diligence obligations.” The measures are likely to lead to higher security costs.

BaFin also said in the order, publicly released on Wednesday, that the lender must “remove backlogs in IT monitoring” and “ensure the existence of an adequate personnel and technical-organisational equipment in order to comply with its obligations under money laundering law.” (more…)

Banks, Mobile-first banks, Security

May 22, 2019

598

Identity platform provider Auth0 raises $103 million at a valuation of $1 billion

via Venture Beat 

Online data breaches are on the rise, and it’s no great mystery why. In a recent survey conducted by LastPass, 59% of respondents said they reused passwords across multiple accounts and more than half said they hadn’t changed their password in the past year. About 95% of cybersecurity breaches are attributable to human errors like these, in fact, and malicious hackers are taking full advantage: It’s estimated that there’s a cyberattack every 39 seconds on average.

Bellevue, Washington-based identity-as-a-service startup Auth0 intends to reverse the trend, and it’s raising capital as it acts on its plans. The six-year-old company today announced that it has secured $103 million in series E financing led by Sapphire Ventures, with participation from existing investors Bessemer Venture Partners, K9 Ventures, Trinity Ventures, Meritech Capital, Telstra Ventures, and World Innovation Lab. The cash infusion values Auth0 at $1 billion, and it brings its total capital raised to about $210 million. (more…)

Deals, Fintech news, Security

May 20, 2019

773

Jumio Teams Up to Fight Financial Crime with TruNarrative

via Finovate blog

Financial crime specialist TruNarrative is partnering with identity verification innovator Jumio to bolster its fraud detection and customer onboarding platform. The integration will enable TruNarrative’s existing customers and prospects to verify the authenticity of more than 3,300 ID document types from more than 200 countries and territories. (more…)

Fintech news, Security

May 17, 2019

1457

FrankieFinancial signs Australian neo banks to RegTech platform

via Finextra

RegTech startup FrankieFinancial has signed Australian neo banks Xinja and Novatti Group to its financial systems aggregator platform, which provides a single point of access to ID verification, KYC, AML, fraud and credit tools from 114 vendors and data sources. (more…)

Banks, Fintech news, InspirAsia, Mobile-first banks, RegTech, Security

May 15, 2019

919

N26 to open security-focused tech centre in Vienna

via Finextra

N26 is opening a technology and innovation centre in Vienna that will focus on using AI to detect fraudulent transactions – which have reportedly been a problem for the digital bank, prompting a probe by German regulators. (more…)

AI / Machine Learning / Big Data, Banks, Mobile-first banks, Security

April 23, 2019

1108

How technology is the only answer to tackling financial crime

via Telegraph.co.uk

Key to stopping financial crime is using the latest technology to truly understand a customer. That’s where you need Encompass, which gathers and analyses a wealth of information to build a picture of a company or individual in minutes, transforming the know-your-customer process. 


(more…)

AI / Machine Learning / Big Data, Security

April 18, 2019

720

Four Major Trends For Compliance Professionals In 2019

via Forbes 

Accenture recently issued its annual Compliance Risk Study to gain insight into the different strategies that firms are pursuing to create compliance functions that meet the demands of a rapidly changing financial services industry.

Facing regulatory pressure and seeking to regain customers’ trust, financial institutions have spent heavily on compliance in the ten-plus years since the global financial crisis of 2008. This year, however, we are seeing a shift away from spending to meet regulatory needs to a focus on aligning compliance with growth initiatives – and to take advantage of technological innovation to automate some of the more basic compliance functions, relieving some of the pressure on firms to find, train and retain scarce talent. (more…)

Global trends, RegTech, Security

April 17, 2019

650

3 in 4 APAC Banks Believe Fraud Will Increase This Year

via Fintechnews Singapore

Almost three in four banks in Asia Pacific anticipate that fraud in their country will increase in 2019, according to a recent poll by FICO.

Two of the main areas of concern are card-not-present fraud and application fraud. Card-not-present payments are concerns are fueled largely by the fact that over 50% global online retail sales came from Asia Pacific in 2018.

Dan McConaghy, President of FICO in Asia Pacific shared that it is precisely due to such reasons that banks need to use AI and machine learning to combat the increased fraud risk. (more…)

AI / Machine Learning / Big Data, Banks, InspirAsia, Security

April 16, 2019

1059

Varo Money gets NICE anti-fraud tech

via FinTech Futures

Varo Money, the US challenger bank, has selected NICE Actimize to implement its financial crime strategy for anti-money laundering (AML) protections, including know-your-customer (KYC) requirements, sanctions screening and transaction monitoring capabilities.

Varo will integrate NICE Actimize’s AML Essentials, a software-as-a-service (SaaS) AML solution that detects and scores a range of banking activities, including customer due diligence, transaction monitoring, watch list filtering and Suspicious Activity Report (or SAR) filings. (more…)

Banks, Fintech news, Mobile-first banks, Security

April 9, 2019

580

How Artificial intelligence can usher a new wave of Identity Verification services?

via MarkTechPost

Artificial Intelligence is considered the next big thing when it comes to tech products and trends that will lead humanity to the next global revolution. But, apart from the ability of Facebook to determine the face of your friends in an uploaded image and incorporation of AI to suggest search engine results on Google, there is still to be seen a real-life application of Artificial Intelligence that can benefit individuals and businesses alike and we think there is no better contender for this, except for Identity Verification services. They cannot only deter online frauds and scams, but they can play a pivotal role in making payment frauds a thing of the past if used with appropriate intelligence. (more…)

AI / Machine Learning / Big Data, Security

April 5, 2019

677

FICO and Equifax Forge Strategic Partnership

via Finovate blog 

A new strategic partnership between FICO and Equifax will help financial institutions better manage risk, marketing, and fraud. The two companies have introduced the Data Decisions Cloud: an end-to-end data and analytics suite that integrates Equifax Ignite, a data and analytics management solution, with FICO Cloud applications and Decision Management Suite, FICO’s digital decisioning platform. (more…)

AI / Machine Learning / Big Data, Fintech news, Security

March 28, 2019

829

Everest to supply KYC platform in Samoa for cross-border transactions

via FinTech Futures 

Asian Development Bank (ADB) has selected Everest, a California-based firm that uses blockchain for know-your-customer (KYC) purposes, to fix a cross-border issue in Samoa, Australia and New Zealand.

The contract with ADB was signed on 1 March this year, with the implementation starting immediately and expected to be finished in Q3 of this year, Everest CEO and co-founder Bob Reid tells FinTech Futures. Everest was granted the contract after the call for proposals by ADB was made in October. (more…)

Blockchain, Fintech news, InspirAsia, Security

March 28, 2019

819

Fixing The KYC And AML ‘Horse-and-Buggy’ Model

via PYMNTS

Only 1 percent of proceeds from financial crimes are intercepted, which means the bad guys are getting away with hundreds of billions of dollars, even trillions. Trulioo General Manager Zac Cohen tells Karen Webster that AML and KYC efforts can be enhanced if FIs think of compliance as a revenue generator, and seek partnerships with tech-nimble firms in a sandbox environment.

(more…)

Security

March 25, 2019

1336

Apple Card will make credit card fraud a lot more difficult

via TechCrunch

Apple’s new credit card has a curious security feature that will make it much more difficult to carry out credit card fraud.

The aptly named Apple Card is a new credit card, built into your iPhone Wallet app, which the company says will help customers live a “healthier” financial lifestyle. The card is designed to replace your traditional credit card and give you perks, such as daily cash. Chief among the benefits is a range of security and privacy features, which Apple says — unlike traditional credit card providers — the company doesn’t know where a customer shopped, what they bought or how much they paid. (more…)

Credit/Debit/Prepaid cards, Hotnews, Security

March 25, 2019

460

BOC goes live with Epic Lanka’s Clari5 AML Solution to battle sophisticated financial threats

via The Daily FT

Technical advancement in transaction monitoring and futuristic risk-based approach of Clari5 AML system to help Sri Lanka achieve discipline in global financial space.

(more…)

InspirAsia, Security

March 21, 2019

982

Jumio Partners with ComplyAdvantage to Reduce AML Risk Exposure

Jumio, the leading AI-powered trusted identity as a service provider, today announces the launch of Jumio Screening. This is a fully automated anti-money laundering (AML) screening solution that integrates ComplyAdvantage, a dynamic real-time database of people and companies that pose financial crime risk. (more…)

Credit scoring, Security

March 18, 2019

1320

Passbase is building a full-stack identity engine with privacy baked in

via TechCrunch

Digital identity startup Passbase has bagged $600,000 in pre-seed funding led by a group of business angel investors from Alphabet, Stanford, Kleiner Perkins and EY, as well as seed fund investment from Chicago-based Upheaval Investments and Seedcamp.

The 2018-founded Silicon Valley-based startup is building what it dubs an “identity engine” to simplify identity verification online.

Passbase offers a set of SDKs to developers to integrate into their service facial recognition, liveness detection, ID authenticity checks and ID information extraction, while also baking in privacy protections that allow individual users to control their own identity data. (more…)

Deals, Fintech news, Influences FinTech, Security

March 18, 2019

1168

Grab opens anti-fraud toolkit for partners

via Tech in Asia

Grab announced today that it will open its internally developed fraud-prevention technology to third parties, enabling its strategic partners and others to combat online fraud.

Named Grab Defense, the suite of tools and APIs is built around the app’s treasure trove of data and its experience in tackling ride-hailing fraud. (more…)

Fintech news, Indonesia, InspirAsia, Security

March 13, 2019

248

Is Privacy Under Threat From All The Know-Your-Customer Documents Stored With Countless Services?

via Forbes

European anti-money laundering legislation means customers and businesses are required to provide potentially sensitive documentation to prove their identities. But how safe are the methods of sharing and storing those documents? Are these attempts to strengthen security creating security and privacy risks of their own?

Right now, we’re stuck with a system that forces customers to duplicate key processes, and means sensitive personal documents are stored in multiple locations with multiple services. That’s a poor experience for customers. More seriously, it greatly increases the risk of data breaches. Recent years have proved – with increasing frequency – just how urgent those risks are. (more…)

Blockchain, Global trends, Security

March 4, 2019

282

Onfido, which verifies IDs using AI, nabs $50M from SoftBank, Salesforce, Microsoft and more

via TechCrunch

Security breaches, where malicious hackers obtain snippets of information that then get used to impersonate individuals in order to gain access to individuals’ and businesses’ sensitive financial and other private information, have become par for the course in the world of digital services. More than 2.7 billion records were  breached in a single incident this year in the US, and overall the damage from incidents like these potentially runs into the trillions of dollars globally.

Today, a startup called Onfido, which uses AI techniques combined with human verifiers to efficiently verify people are who they say they are when using digital services — is today announcing $50 million in funding to help address that ongoing — and growing — problem. (more…)

AI / Machine Learning / Big Data, Security

March 4, 2019