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Online EducationCompliance AllianceABA Banking Journal: House votes to reverse CFPB overdraft ruleApril 9, 2025
The CFPB overdraft limit requires banks with at least $10 billion in assets to cap overdraft fees at $5 unless they voluntarily set a cap that covers their actual costs and losses or treat overdraft protection as a loan covered by the Truth in Lending Act. The American Bankers Association has joined the Mississippi Bankers Association and others in challenging the rule in court. ABA has endorsed both resolutions to overturn the rule. In a statement, ABA President and CEO Rob Nichols thanked Senate Banking Committee Chairman Tim Scott (R-S.C.) and House Financial Services Committee Chairman French Hill (R-Ark.) for their leadership on the issue. “Consumers have indicated time and time again that they value and appreciate this highly regulated service and don’t want banks to discontinue offering it because of a rule that imposes unlawful government price caps,” Nichols said. “Congress has acted decisively to right that wrong and ensure America’s banks can continue offering this important, optional service consumers rely upon to meet their short-term financial needs. We appreciate the administration’s support and look forward to President Trump quickly signing this resolution into law.” The Senate also voted 213-206 on a separate resolution to overturn a CFPB rule allowing it to regulate large nonbank firms that provide digital payments services, including peer-to-peer payments, mobile wallets and other payment apps. The rule only applies to providers that conduct more than 50 million transactions annually, and it excludes services for cryptocurrency and other digital assets. Back to TopABA Banking Journal: ABA’s Nichols renews call for national strategy on fraudApril 8, 2025
In his opening remarks for the American Bankers Association Washington Summit today, President and CEO Rob Nichols renewed the association’s call for a “coordinated, whole-of-government approach” to the “insidious threat” of fraud. Specifically, Nichols urged Congress and the Trump administration to establish a national office to support scam and fraud prevention as part of a “national strategy to reduce the number of Americans who fall victim to these scams.” Nichols also called for greater cooperation by those in the private sector, in particular tech and telecom companies. “They need to stop scammers from reaching vulnerable consumers through fake social media profiles, spam calls, text messages and emails,” Nichols said. “Right now, it’s still too easy for the bad guys to spoof a bank name on a caller ID, email or text.” Meanwhile, banks and ABA continue to deploy technology, personnel and new tools to detect and prevent fraud and protect consumers, Nichols said — specifically flagging ABA’s expanded Fraud Contact Directory and award-winning consumer education campaigns like #BanksNeverAskThat, Practice Safe Checks and Safe Banking for Seniors. Back to TopABA Banking Journal: OCC notifies Congress of data breach involving bank informationApril 8, 2025
A cyber incident involving the Office of the Comptroller of the Currency’s email systems led to unauthorized access to highly sensitive information about the financial condition of financial institutions the agency supervises, according to a notice to Congress by the OCC. The notice is required by the Federal Information Security Modernization Act. The OCC publicly disclosed the data breach in February but released details today about the incident. According to an agency statement, the OCC learned of unusual interactions between a system administrative account in its office automation environment and OCC user mailboxes in mid-February. The OCC implemented incident response protocols and began analyzing the compromised emails to determine their contents. Some contained sensitive information on financial institutions. The OCC has brought in third-party cybersecurity experts to perform a full review of the investigation and forensics efforts, according to the agency. It is also launching an evaluation of its current IT security policies and procedures, and plans to engage an additional independent third-party to assess and analyze internal processes related to cyber incidents. “The confidentiality and integrity of the OCC’s information security systems are paramount to fulfilling its mission,” said Acting Comptroller of the Currency Rodney Hood. “I have taken immediate steps to determine the full extent of the breach and to remedy the long-held organizational and structural deficiencies that contributed to this incident. There will be full accountability for the vulnerabilities identified and any missed internal findings that led to the unauthorized access.” ABA Banking Journal: Fraud Watch: Fraudsters use genAI to enhance old scams
AI has been around for a long time, and banks have been using AI for a long time — fraud detection alerts, credit scoring risk assessments, process automation, chatbots. Now, generative AI tools have upped the game. Microsoft is renaming its whole Office 365 suite to focus on its Copilot product, the AI agent that’s trying to help make your life easier and use these tools to make you more productive. Google shows AI summaries for its search results at the top now. And of course there’s ChatGPT, which has transformed digital life since it launched to the public two years ago.  HEAR THIS — ABA’s Paul Benda discusses fraud trends and tips on the new ABA Fraudcast. Listen and subscribe at aba.com/fraudcast.These generative tools don’t just work on text; they also work on video and voice. For example, ChatGPT’s DALL-E tool will create images from text inputs. And a new paid add-on to ChatGPT, called Sora, can generate videos. Generating video used to be the expensive province of big movie studios, but now it’s available to everyone for free or at low cost. The next step is the rise of autonomous agents. A new tool on ChatGPT, called the Operator tool, allows you to assign the agent a task: “Hey, book me a hotel room three weeks from now that’s for a beachside resort in this town.” What do all these advances have to do with fraud? Reputable companies have controls in place. But the bad guys have realized they can leverage these AI capabilities because many of them are posted as open source, which means anyone can look at that code and then build their own fraud AI agents. There’s even one called FraudGPT that allows criminals to access these types of capabilities — it’s basically AI fraud as a service. And the outcome is a wave of impersonation scams that are harder than ever to stop. Take a classic business email compromise scam. One key method to stop this is for the target who Fraudsters use genAI to enhance old scams gets an email request for a wire transfer to call the source of the request. But now, through cheap AI-based voice cloning — a technology that’s accessible for as little as $5 per month — scammers can fake a requester’s voice and make their scams more robust. I recently tested my own voice on one of these platforms, using recordings from ABA podcasts. It was fairly convincing. It only takes one or two minutes of recordings to get a fairly realistic voice clone. There are still some little alterations in the timing of the way people say things, but it can be refined — and scammers have the time to do this. Another generative AI-driven tactic is faking faces using an avatar generator. One AI solution offers a “beta,” an interactive avatar that lets you join multiple Zoom calls and watch and interact with people in real time with your image and your voice. The bad guys are using these impersonation capabilities to get you to do something, to send money, to change wiring instructions. And they’re authenticating themselves now through biometrics: voice and face. Add in the capability to generate artificial sound effects and background noise — and even voice effects and inflection that reflect fear, anger or other emotions — and you can see how this technology enhances the classic “grandparent” scam. A scammer can generate a significantly more convincing call from a grandkid in distress who needs cash to get out of a rough situation. Generative AI gives scammers a whole new toolbox. Understanding how these tools work is the first step to knowing how to stop the frauds. Paul Benda is EVP for fraud and operational risk policy at ABA and host of the ABA Fraudcast. TOOLKIT — One tactic families can use to protect themselves from this kind of scam is to have a family password — an agreed-upon, hard-to-guess word that authenticates the validity of the request. Back to Top West River Small Business Rural Lender RoundtableWednesday, April 23, 2025 | 11:00am-12:30pm MDT | Webinar
Who should attend: Financial institutions, CDFIs, non-profit organizations, community based organizations, federal, state and local government, and other stakeholders interested in partnership opportunities that support small business growth in the West River and surrounding areas of South Dakota. Back to Top
2025 SDBA New Accounts SeminarApril 22, 2025 | Sioux FallsManaging risk is the #1 priority for all financial institutions, starting at the new account desk. If a criminal cannot open a bank account, they cannot negotiate a stolen check, embezzle from their employer, or steal from your organization and community. Well-trained new account personnel and universal bankers who recognize and stop attempted fraudulent activity are the first lines of defense in protecting a financial institution from fraudsters. Unfortunately, new account personnel are often trained "on the job," which results in an environment of potential vulnerability and unnecessary losses. Trust and business accounts continue to grow in popularity and complexity - LLCs owned by Revocable Trusts and businesses owned by other businesses… the need for ongoing compliance training is paramount to maintain diligence and update processes and procedures. This full-day program is one of the country's most comprehensive seminars on opening deposit accounts. The session answers many of the complicated questions customers and employees ask. The 200+ page detailed manual, included in the registration and customized to your state law, has become an invaluable resource for banks across the state. These workshops are highly interactive. Come prepared to get your questions answered! National School for Experienced Ag BankersJune 23-26, 2025 | Spearfish
GSB Financial Managers SchoolSeptember 22-26, 2025 | Madison, WI
Back to TopOnline Education
GSB Online Seminars Question of the WeekQ: Our bank notified a customer that their provisional credit (following our Regulation E error resolution investigation) was finalized, but then the merchant issued a credit as well. Is the bank able to recapture our provisional credit? (or the merchant credit?) A: Unfortunately, Regulation E itself does not appear to encompass - or even contemplate – such a scenario (that is, the reversal of final credit due to a subsequent merchant credit being awarded). In a strict reading of § 1005.11, there is not any language that would expressly allow the reversal of a final credit, nor to revisit the amount of final credit provided based on later information, such as a subsequent merchant credit. Indeed, not only does the regulation not specifically allow for this, but there would likely be UDAAP concerns with such a practice – particularly given that the customer had already been notified of their final credit, and any ensuing attempt by the bank to reverse this credit could be seen as “deceptive” (a misrepresentation that misleads the customer) or “unfair” (monetary harm to the customer that they could not reasonably avoid.) While some may argue that in these instances, the customer may potentially be getting a “windfall” via double-crediting (i.e. both that from the bank and the merchant), one thing seems clear – Regulation E, being consumer-protective in its creation and spirit, does not appear to permit a bank to claw funds back once they’ve been finalized. Learn how to put compliance management solutions from Compliance Alliance to work for your bank, by contacting (888) 353-3933 or [email protected] and ask for our Membership Team. For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.
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This webinar will highlight small business lending products that help encourage banks and their partners to serve small businesses. Speakers from SBA, USDA, and the Governor's Office on Economic Development will present a joint overview of lending programs. Best practices from current lenders will be shared to increase small business lending and support small business development in rural South Dakota.
As the economic and regulatory environments continue to change, it’s vital that financial services CFOs, controllers and other finance and accounting executives have a solid foundation in asset/liability management. The Financial Managers School 
