ABA Newsbytes | Bankers: Urge Lawmakers to Pause Fed Plan to Slash Debit Card Interchange Fees

ABA is calling on bankers to contact their representatives to urge them to support a House bill that would require the Federal Reserve to pause its proposal to lower the cap on debit interchange fees and first complete a quantitative study of its effects. The Fed last year proposed revising Regulation II to lower debit interchange fees by almost 30% and institute a biennial review of the cap without accompanying public comment each time.

The Secure Payments Act, sponsored by Rep. Blaine Luetkemeyer (R-Mo.), would require the Fed to measure the effect on consumers of lowering the debit interchange cap. In a March letter supporting the bill, ABA said the Fed’s proposed changes would fundamentally impair the sustainability of affordable deposit account products.

“Predictably, this will result in a reversal of successful financial inclusion efforts by increasing the costs of checking and other basic banking services, which among other things, would jeopardize low-cost Bank On accounts that have brought millions of Americans into the banking system,” ABA said. Contact your lawmakers and urge them to support the Secure Payments Act.

CISA: Cisco Warns of Massive Surge in Password-Spraying Attacks on VPNs

CISA Attackers are indiscriminately targeting VPNs from Cisco and several other vendors in what may be a reconnaissance effort, the vendor says.

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Jai Vijayan, Contributing Writer

FinCEN Issues Analysis on Elder Financial Exploitation

Financial Institutions Report $27 Billion in Elder Financial Exploitation Suspicious Activity in One-Year Period

WASHINGTON—The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Financial Trend Analysis today focusing on patterns and trends identified in Bank Secrecy Act (BSA) data linked to Elder Financial Exploitation (EFE), or the illegal or improper use of an older adult’s funds, property, or assets. FinCEN examined BSA reports filed between June 15, 2022 and June 15, 2023 that either used the key term referenced in FinCEN’s June 2022 EFE Advisory or checked “Elder Financial Exploitation” as a suspicious activity type. This amounted to 155,415 filings over this period indicating roughly $27 billion in EFE-related suspicious activity.

“FinCEN has long recognized the threat that Elder Financial Exploitation poses and the need to protect the older adult population from financial abuse,” said FinCEN Director Andrea Gacki. “FinCEN’s analysis highlights the critical role of financial institutions in helping to identify, prevent, and report suspected Elder Financial Exploitation. We are grateful for their vigilance and for the BSA information they have filed—and continue to file—in response to FinCEN’s 2022 advisory.”

Financial institutions began filing BSA reports featuring the advisory’s key term on the same day that FinCEN published its 2022 advisory. FinCEN has continued to receive EFE BSA reports, averaging 15,993 per month between June 15, 2023 and January 15, 2024. Banks have submitted the vast majority of EFE-related BSA filings.

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ABA Banking Journal: "Nefarious Uses of Deepfake Tech"

ABA journal Earlier this year, scammers stole more than $25 million from a Hong Kong firm when a faked audiovisual of a CFO asked an employee to conduct a secret transaction. The employee attended a purported video conference meeting with the CFO and other colleagues—but they were all deepfakes. As explained in a new ABA Banking Journal article, the deepfake threat that banks face is no longer an emerging risk. It is at the doorstep.

“This can happen to every single one of you at any moment, and there’s very little you can do about it,” says John Farley, cyber practice managing director at Gallagher.

Using free manipulation software that requires little practice or expertise, criminals have introduced a new and disturbing wrinkle in today’s cybersecurity landscape. Created with the intent to make it appear that people did or said things they didn’t do or say, deepfake technology is created by bad actors to conduct financial crimes, influence political elections, launch misinformation campaigns and cause reputational harm for people and organizations.

“It’s really not that complicated once you have a video clip of somebody,” Future Point of View CEO Hart Brown says.

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Ag Credit Conference | July 17-18 | Pierre

Ramkota Hotel & Conference Center

The 2024 SDBA Agricultural Credit Conference brings together key stakeholders in the financial and agricultural sectors to address pertinent issues surrounding agricultural financing and credit access. This conference serves as a platform to explore emerging trends, address common challenges, and identify opportunities for collaboration and partnership to support the long-term success and resilience of the agricultural sector. Through expert presentations, insightful discussions, panel discussions and a robust exhibit hall, attendees will gain valuable insights into navigating the challenges of agricultural lending, mitigating risks, and maximizing opportunities for growth in this vital sector of the economy.

Exhibitors & Sponsorship

Information & Registration

Note: The hotel blocks for this event will release on June 14.

2024 NDBA/SDBA Annual Convention | Register Today!

June 3-5 | Delta by Marriott | Fargo, ND

Limitless

Bankers strive tirelessly to positively impact people and communities despite regulatory challenges, economic uncertainties, and technology shifts. Bankers throughout North and South Dakota know the boundless pursuit of doing good. While rapid change is certain, banking as a people business remains the same. Bankers face headwinds, solve problems, and see hope...always.

Thank you for being an NDBA/SDBA member. By working together, we become limitless.

Join us in Fargo this summer for the 2024 NDBA/SDBA Annual Convention and let’s inspire each other! - www.ndba.com

CONVENTION ATTENDEES: REGISTER HERE!

Last Day to Book for Group Rate: May 2

Click here to view Convention Brochure
Click here for all registration forms (PDF to print, scan and send)
Click here for Delta Hotel by Marriot reservations

2024 BankON Webinar | April 30 | 10:00am CDT via Zoom

ABOUT

Targeted to banks in North and South Dakota, this webinar will discuss the need to broaden access to low cost bank accounts that meet the Cities for Financial Empowerment (CFE) Fund National Account Standards, provide an overview of the FDIC Survey of Unbanked and Underbanked Households, and highlight research from the CFE Fund. Banks that offer these accounts will discuss their experiences and best practices.

REGISTRATION FEE

No cost, but registration is required to adequately manage the Zoom account.

Information & Registration

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Q: Is it permissible to open interest-bearing business accounts that are not NOW accounts?

A: With the repeal of Reg. Q over a decade ago, businesses can now have interest-bearing demand deposit/checking accounts. However, it is worth noting that, generally, most for-profit business entities are still not allowed to have NOW accounts under Regulation D, unless they operate for certain purposes and/or are non-profit. Further, certain state laws and/or vendor agreements may also impose restrictions, so it is worth reviewing those, as well. For reference: https://www.federalreserve.gov/boarddocs/supmanual/cch/int_depos.pdf

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.

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