The following is from Jim Edman, CISA Cybersecurity Advisor for South Dakota

From the desk of long-time listener, first time submitter Andrew J. Ogan,  a call recorded with a group of scammers in India. The investigator does a great job of identifying and frustrating the scammers over the phone.  It’s a 14-minute video but he does a good job of explaining each step along the way on his call. The initial scam is in regards to an expired Norton anti-virus subscription with the ultimate goal of the scammers to empty his bank account. Unfortunately, far too many Americans fall for these types of scams. https://youtu.be/j0c_I7MWB1U 

As more states allow some form of cannabis legalization, small businesses, banks and the communities they serve continue to be stuck in the middle of the divide between state and federal cannabis law. Congress has an opportunity to do something about it by passing the SAFE Banking Act, which would provide state-licensed cannabis businesses with a transition into the regulated banking system. The SAFE Banking Act has passed the U.S. House six times with strong bipartisan support and it’s now being considered for inclusion as part of the broader COMPETES Act.

The House and Senate are actively working out differences in the COMPETES Act and are expected to vote on it in the coming weeks. Write to your members of Congress today and ask them to weigh-in in favor of including the SAFE Banking Act in the final COMPETES bill. Learn more here.

Bitcoin, Crypto, Blockchain, NFTs… In the last few years, these words and concepts went from discussions had on the fringe to common, everyday conversations. Join us, in partnership with the ABA, NDBA and Wyoming Bankers Association, on May 9th and 10th as we turn to our distinguished panel of experts to help demystify the latest information surrounding the future of money and help financial services professionals navigate this new reality. To register and review the full schedule, click here.

Since 1945, the Graduate School of Banking at the University of Wisconsin-Madison (GSB) has helped develop banking leaders through a program of advanced management education. Today, GSB is widely recognized as the nation's leading and most progressive banking school, offering a comprehensive course of study that focuses on meeting the changing needs of today's bank manager. GSB is the only graduate banking school in the nation that relies on its alumni, Banker Advisory Board and Academic Committee to create a unparalleled learning and networking experience. GSB is sponsored and governed by the Central States Conference of Bankers Associations in partnership with the University of Wisconsin-Madison, and has been the school of choice for more than 23,000 bankers, with good reason. 

Sara Gould, Intelligence Analyst with the FBI Minneapolis Field Office, reached out to the SDBA re: the availability of Bank Robbery Deterrent Stickers. Gould says these stickers are available to member banks to utilize in lobbies and/or ATMs. If you're interested in receiving stickers, please contact the SDBA at [email protected] by Friday, April 29, 2022, with your contact information and the quantity needed, and we'll forward your request on to Sara.

The SDBA will honor and recognize those bankers with 40 or 50 years of service in banking during its Annual Business Meeting on Wednesday, June 15, 2022, at the Annual Convention in Bismarck, ND. Years of service awards can also be awarded at the bank. To request an award for someone who has been in banking for 40 or 50 years, please complete the form. The deadline is submit an award to be presented at the 2022 Annual Convention is May 13, 2022. Contact the SDBA at [email protected] or 605.224.1653 if you have any questions.

The Federal Reserve, FDIC and OCC will host a joint “Ask the Regulators” webinar on Thursday, April 28 at 1 p.m. CDT on the recently finalized computer security notification rule, which has a compliance deadline of May 1.

Webinar participants can email questions in advance to [email protected], and questions submitted prior to April 20 will receive priority for responses by panelists. The webinar will also be made available for future viewing. Register for the webinar.

The following tip was provided by our friend, Jim Edman, CISA Cybersecurity Advisor for South Dakota.

We spend a majority of time talking about the software and hardware vulnerabilities and related aspects of cybersecurity. It’s important that we remember the physical aspects also. Though we are a small state and considered by some to be somewhat geographically isolated, a critical aspect of cybersecurity continues to be the physical aspects. Reports surfaced this week of Russian nationals attempting to gain access to critical infrastructure facilities across the country. Recommendations for in-person and voice I/T support include:

A majority of the nation’s small business owners—78%—say they are concerned about the threat of a Russian cyberattack in light of recent news coverage, according to new survey data released by New Jersey-based Provident Bank earlier this week. Looking ahead to the next 12 months, three in 10 survey respondents said it is “very likely” their business will experience a cyberattack or cybersecurity breach, compared to just 11% who said it was not likely at all.

Seven in 10 small business owners said that addressing a cyberattack or breach was part of their business continuity plan; however, just half said they are actually fully prepared to face a cyberattack on their organization. A similar percentage (around 50%) said that the threat of a cyberattack is something they think about nearly every day.

The SDBA is partnering with the SD Department of Ag and Natural Resources (SD DANR) to highlight and promote a new program that provides free mental health vouchers to farmers and ranchers in need. We all know the farm economy has been a tough one and farm stressors can come from many directions, including the agricultural system, farm and family finances, mental and physical health challenges, and relationship difficulties. But there are services and resources, many of which are free, that are available to our producers during these troubling times.

If you click here, we've uploaded two flyers, provided by 605Strong, that you may utilize to support your staff, customers, friends, family and yourself. You may also contact Mr. Brian Pontious, Policy Advisor, SD DANR, to coordinate the quantity of brochures and delivery arrangements directly to your banking organization! Again, all brochures are provided by SD DANR at no cost to your bank.

Brian Pontious. Policy Advisor
Department of Agriculture and Natural Resources
523 E. Capitol Ave. Pierre, SD 57501
Phone: 605.773.4073
Email: [email protected]
Web: danr.sd.gov

Please utilize the 211 Helpline, available 24/7. Be well, seek assistance, and together, we're #605Strong.

The Consumer Confidence Index increased slightly in March to 107.2 from 105.7 the month prior, the Conference Board said yesterday. “Consumer confidence was up slightly in March after declines in February and January,” said the Conference Board’s Lynn Franco. “Meanwhile, purchasing intentions for big-ticket items like automobiles have softened somewhat over the past few months as expectations for interest rates have risen.” Read more here.

Ever wonder, "what is the SDBA up to these days?" The answer to that question is coming to a town near you! The SDBA team will be hitting the open road, making stops in Pierre, Sioux Falls, Aberdeen and Rapid City, to discuss with our members, partners and legislators, about what the SDBA has going on, our plans for going forward, and how to engage as we move the needle forward in South Dakota’s banking industry. These meetings will be FREE to attend, however, we are requesting registration ahead of time so we can order the appropriate number of lunches. Click here to view the schedule and register.

In the wake of Russia’s invasion of Ukraine, western governments have imposed unprecedented financial sanctions on individuals, businesses, banks and governments in Russia, Belarus and Russian-occupied areas of Ukraine. With new sanctions continuing to be announced and a rolling series of compliance deadlines, the latest episode of the ABA Banking Journal Podcast — sponsored by IntraFi Network — features ABA VP Rob Rowe for a discussion of:

• The overall view of sanctions and what banks should be anticipating in the near future.
• How banks of all sizes, including small banks, can have exposure to sanctionable transactions.
• The role of software — and regular updates to it — as well as correspondent banking relationships in facilitating sanctions compliance.
• Red flags for sanctions evasion bankers should watch out for.

Click here to listen.

March is Women's History Month and the ABA has curated useful tools and tips for women in the banking industry. One item, a podcast with Pinkaj Klokkenga, Chief Technology Officer, Old Point National Bank. At a community bank with limited staff and resources, tech transformation is all about setting priorities. Klokkenga discusses how she is setting and advancing these priorities at her Hampton Roads area community bank. In the episode, Klokkenga discusses:

• Her experience in IT and at the Federal Reserve Bank of Richmond before joining a community bank.
• Early IT wins for Old Point National Bank in the COVID era, including online scheduling, ATM upgrades to be ITM-compatible and revamping online account opening.
• How to identify the tech skillsets a community bank needs and rely on vendors for support.
• How to balance responsibility for client solutions with the lines of business.
• In a job-seeker’s market, the importance of offering top IT talent a range of engaging and creative work opportunities.

Click here to listen.

The Treasury Department last Friday issued a new round of sanctions against individuals who have supported Russian President Vladimir Putin’s invasion of Ukraine, including the management board of VTB Bank, which was also previously sanctioned. The sanctions followed an executive order signed by President Biden that established several additional steps to limit imports, exports and new investment with Russia in light of the ongoing conflict.

Additionally, the Office of Foreign Assets Control issued new guidance aimed at preventing sanctions evasion, including through the use of cryptocurrencies. “This guidance continues to make clear that Treasury’s expansive sanctions actions against Russia require all U.S. persons to comply with OFAC regulations, regardless of whether a transaction is denominated in traditional fiat currency or virtual currency,” Treasury said.

Sarah Bloom Raskin, President Biden’s nominee to serve as the next vice chairwoman for supervision at the Federal Reserve, withdrew her nomination on Wednesday after failing to secure support from several key lawmakers, including Sen. Joe Manchin (D-W.Va.). According to news reports, Raskin was not expected to receive support from any GOP senators, which meant that in the evenly divided Senate, Manchin’s opposition would have prevented her confirmation.

During her confirmation hearing in the Senate Banking Committee, Raskin faced tough questions about her previous writings and speeches in which she seemed to support using the regulatory apparatus to redirect investment away from industries that, in her view, are contributing to climate change.

WASHINGTON – The Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Bureau of Investigation (FBI) issued a joint cybersecurity advisory on Tuesday with technical details, mitigations, and resources regarding previously demonstrated ability of Russian state-sponsored cyber actors to gain network access through exploitation of default multifactor authentication (MFA) protocols and a known vulnerability in Windows Print Spooler, “PrintNightmare.”

As early as May 2021, the Russian state-sponsored cyber actors took advantage of a misconfigured account set to default MFA protocols at a non-governmental organization, allowing them to enroll a new device for MFA and access the victim’s network. The actors then exploited a critical vulnerability “PrintNightmare” (CVE-2021-34527) to run arbitrary code with system privileges, and then were able to access cloud and email accounts for document exfiltration.