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NewsBriefs

Editor's note: Following are excerpts from news stories we've covered recently. For the full sto- D.C. Court revisits
ries and additional breaking industry news, please visit www.greensheet.com/breakingnews. case against CFPB
php?flag=previous_breaking_news.
The Consumer Financial Protection
First Data gains CardConnect Bureau has been closely scrutinized
since its inception as part of the 2010
First Data Corp.'s CardConnect acquisition, disclosed May 29, 2017, is the Dodd-Frank Act. Advocates say the
latest in a series of payments industry mergers. Payments analysts expect government agency protects consum-
CardConnect's 67,000 merchants and technology suite to complement First ers from unfair lending and predato-
Data's processing solutions while adding $26 billion to the company's $2.2 ry credit practices. Opponents claim
trillion annual processing volumes. Both companies unanimously approved the agency is too powerful and au-
First Data's $750 million cash offer for CardConnect's outstanding shares. Upon tonomous. Both sides had their day
completion, First Data will repay CardConnect's debt and receive $15 per share in court May 24, 2017, when the U.S.
for the company's untendered common stock. The deal is expected to close in Court of Appeals for the D.C. Circuit
the third quarter of 2017. reopened PHH v. CFPB, a legal action
Chipotle uncovers POS malware in breach investigation challenging the CFPB's constitution-
ality and powers.
Investigation of a payment card security incident first reported on April 25,
2017, revealed POS malware was used at certain Chipotle Mexican Grill Inc. PHH Corp. and concerned parties
and affiliated Pizzeria Locale restaurants from March 24, 2017 to April 18, 2017. sued the CFPB in April 2016. Plain-
The malware apparently searched for track data from magnetic stripe cards tiffs alleged the bureau belonged to
being routed through POS devices. Chipotle reportedly declined to implement a group of government agencies that
EMV (Europay, Mastercard and Visa) chip-enabled transaction capabilities in "constitute a headless fourth branch
2015, citing delays in the authentication process caused by issues specific to of government." PHH Corp. was also
EMV implementation in fast-food service environments. contesting a $109 million penalty
imposed by the CFPB for deceptive
practices.
Lawsuit alleges USR technology at
core of Apple Pay
On May 22, 2017, Universal Secure
Registry LLC filed a complaint in
the U.S. District Court for the Dis-
trict of Delaware alleging that Apple
Inc., Visa Inc. and its subsidiary Visa
U.S.A. Inc. infringed seminal patents
for electronic payments and identity
authentication integral in develop-
ing their mobile payment platforms.
USR holds 13 of the more than 30 U.S.
patents authored by USR founder
and Chief Executive Officer Kenneth
Weiss, inventor of SecurID token and
former CEO of Security Dynamics
Technologies Inc., now RSA Security
LLC.
DocuSign warns against
phishing scam
DocuSign Inc. warned of a phish-
ing campaign with malicious code
that began circulating May 16, 2017.
Company representatives recom-
mend deleting and not opening sus-
picious emails that contain non-PDF
attachments, suspicious URLs and
spelling errors. Preliminary reports
from forensic investigators indicated

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