Jennifer Curtiss

🚨 CFPB Sues Major Banks Over Fraud on Zelle: A Wake-Up Call for Consumer Protection 🚨 The Consumer Financial Protection Bureau (CFPB) has taken legal action against JPMorgan Chase, Bank of America, Wells Fargo, and Early Warning Services (operator of Zelle) for failing to protect consumers from rampant fraud on the Zelle payment network. Since its launch in 2017, Zelle has facilitated billions of transactions, but hundreds of thousands of fraud complaints have been reported, with over $870 million in consumer losses tied to its vulnerabilities. The CFPB alleges that these financial giants rushed Zelle to market without implementing effective safeguards, leaving consumers exposed to scams while offering minimal support when fraud occurred. 🔍 Key Allegations 1️⃣ Failure to Prevent Fraud: Zelle’s weak identity verification allowed scammers to exploit its features and redirect payments to fraudulent accounts. Criminals easily moved between banks due to the lack of communication and fraud tracking across the network. 2️⃣ Ignoring Red Flags: Despite receiving hundreds of thousands of fraud complaints, the defendant banks failed to act on these patterns to prevent further fraud. Banks allegedly violated Zelle’s own rules by not reporting fraud incidents consistently or on time. 3️⃣ Abandoning Fraud Victims: The banks failed to properly investigate customer complaints or reimburse victims, violating federal laws like the Electronic Fund Transfer Act and Regulation E. CFPB’s Enforcement Goals Halt Unlawful Conduct: Stop banks and Zelle from engaging in unfair and deceptive practices. Consumer Redress: Obtain restitution for harmed consumers and penalties to fund victim relief. Enhanced Safeguards: Implement stricter fraud prevention and reporting protocols. 💡 Takeaways for Consumers Stay Vigilant: Scammers often exploit payment networks, particularly during the holiday season. Report Scams: Submit complaints about payment fraud to the CFPB at (855) 411-CFPB or via their website. The Bigger Picture This lawsuit underscores the critical need for consumer-first protections in financial technologies. Payment networks like Zelle must balance convenience with robust security to ensure trust and safety for users. AreEn Source - https://lnkd.in/eqanfzbh 💬 What are your thoughts on the CFPB’s actions? Have you or someone you know faced fraud issues with Zelle or similar platforms? Share your insights below to continue the conversation. Source: Consumer Financial Protection Bureau #ConsumerProtection #Zelle #FinancialFraud #CFPB #BankingSecurity #ConsumerRights #FinTech

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As noted in the attached blog by Karen Leiter, CRCM, CAMS, CBAP, all financial institutions have a responsibility to determine and verify their lending practices are fair and non-discriminatory. To achieve this, financial institutions must have a comprehensive #fairlendingprogram in place. Click on the blog to learn more and check out the CLA blog page where you can sign up for new content to be delivered when it comes out! #clapromise #clablog

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FIS is leveraging the power of Snowflake to modernize our Capital Markets strategy and enhance our powerful solutions, like Trading Compliance Manager. We’re driving innovation together, breaking down data silos, driving real-time insights, enhancing data access and empowering our clients like never before. Learn how this partnership is transforming the industry by checking out our joint panel discussion here http://spr.ly/6041WJ3N3 #FinTech #CloudModernization

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The Financial Stability Board (FSB) published a paper in April looking at margin and collateral liquidity risk for non-bank financial institutions (NBFIs), and held a follow up webinar last week. These raised some important and tricky ideas about what non-banks should be covered in any new recommendations, what should they be asked to do and how much would it matter anyhow in a high stress environment? More on #finadium: https://lnkd.in/exbC3Avs

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Looking forward to another informative and engaging FINRA conference in DC next week. Hoping to catch up with colleagues as well. Lots happening on the regulatory front (as always) including enhanced SEC Rule 605 requirements, fractional share reporting, short interest reporting changes and continued fines for surveillance deficiencies. Message me if you'd like to get together next week to discuss these or other topics over an adult beverage and hear more about Jordan & Jordan's Compliance and Regulatory consulting services. https://lnkd.in/e7aKSBRc #compliance #FINRAAC

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Your financial institution may have scrambled to roll out new digital capabilities during the pandemic. But are these efforts successfully unlocking all the opportunities that digital banking can provide? Get advice on accelerating your digital roadmap.

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I am thrilled to share that I will be on this webinar with industry peer Chloe Jenkins discussing all things #ISO20022, the challenges, the benefits, the future of payments. Register via the links in the post below

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‘Model Card’ invented by tech industry is a joke. Banking industry in the US has the best practice in term of model development and validation documents. All models (big banks have a few thousands of them) are documented thoroughly with pair of documents by 2 independent activities (development and validation). The data scientists are spending a lot of time to meticulously document every aspect of their models with certain standards. Writing model documentation is not fun but they did it. Vectice team creates a state of the art tool to facilitate model documentation with ease, reducing the grueling and not fun governance activities and free up data scientists to do data science.

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The latest ETF Central #podcast with Matt Kaufman, CETF®of Calamos Investments (brought to you by the NYSE) is a must listen to! #etfs #thehomeofetfs #etf

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Will a new breed of financial leaders emerge to navigate today’s complex environment, or will established players adapt and maintain their dominance? Ronald O'Hanley, chairman and CEO, will join a panel of industry-leading voices at FII Institute to share his insights on the emerging era of finance and portfolio management amidst a blur of traditional and alternative investments. Learn more about State Street's presence at #FII8: http://ms.spr.ly/6041WEskF

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The Consumer Financial Protection Bureau (CFPB) proposed the Section 1033 rule to enhance consumer financial data rights and promote open banking. Here are some real-life advantages for customers: 1. Personal Financial data rights rule (Data Access and Control): Consumers gain the right to access and share their financial data. They can authorize third parties to access this data on their behalf, allowing for better financial management and control1. 2. Competition and Data sharing enabling Switching Providers: The rule simplifies switching to new financial services providers. Consumers can securely transfer their data, reducing bureaucratic hurdles and encouraging competition2. 3. Innovation and New Services: By sharing data with third parties, consumers enable the development of new and improved financial products and services. This fosters innovation and benefits consumers3. 4. Frictionless Consent: Data providers aim for seamless customer authentication and authorization. While balancing consent and friction, the goal is to capture unambiguous customer consent4. In summary, CFPB-1033 empowers consumers, promotes competition, and ensures secure data sharing in the evolving financial landscape. This is going to drive innovation and allow new type of product launches in financial space with seamless switching of providers or your main financial institution. Its expected to be finalized in Second half of 2024. However Financial Institutions need to assess their existing infrastructure and adapt it to comply with the rule's requirements. This involves evaluating data-sharing mechanisms, APIs, and digital interfaces. Additionally, it would put strain to Institutions who have to enhance their operational capacity to handle increased data requests and transfers. Navigating these challenges will be essential for successful implementation of the CFPB-1033 rule. The CFPB’s Section 1033 regulation is expected to be finalized in the second half of 2024, likely in the fall. This move toward open banking aims to empower consumers and foster healthy competition in the financial industry https://lnkd.in/gjghkv5S #OpenBanking #FinTech #CFPB1033 #AmericanBanker #FinancialDataRights

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As part of our survey of users of securities finance execution platforms released last week, we asked market participants how they defined “execution platform,” and if this was the same or different than a messaging platform. Here’s what they said. More on #finadium: https://lnkd.in/e3wmsYpJ

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How and when did Morgan Stanley’s management team see the opportunity to change the game in terms of risk within wealth management?   Unsurprisingly, it was tech that helped them lead the way.   Listen to this meaningful conversation between Chris Scott-Hansen, Managing Director, Associate Director of Consulting Group, Head of Trading & Managed Solutions, Morgan Stanley, and my colleague, Woo Fung Kwong, Managing Director, Chief Strategic Advisor to Aladdin. Hear the full conversation: https://1blk.co/3vJoIOf #TechIsNeverDone #AladdinIsNeverDone

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Our workgroup has been working hard to prepare this guide to help institutions prepare their operations for instant payments. We hope that this will help answer your questions and provide you with valuable insights as you dive into instant payments. #FasterPaymentsCounsel #InstantPayments

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If you want to understand why ValidMind is hitting top quadrants in the Chartis Research Model Risk & Validation Report, reach out to us to see why!

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This one belongs in the Big Deal category, IMO- Financial Data Exchange has been recognized by the Consumer Financial Protection Bureau as a standard setting body for US #openbanking after a curiously long delay. There may yet be other approved standards, but FDX clearly has a strong head start. Unlike some recent CFPB actions, I see no reason to expect a reversal on the open banking course. The nation's largest banks have been advancing APIs and #fintech partnerships for some time- it's imperative for #creditunions and #communitybanks to get into the game. https://lnkd.in/en-D_duW Lou Grilli Best Innovation Group Laura Ernzen Dean N. Elias Kruger Tommy Marshall

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