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IndustryUpdate

Scarlett Sieber and Sophie Guibaud, authors of Embedded
Finance: When Payments Become An Experience, explain in
the book why they believe embedded finance is the most
impactful trend of fintech and detail how it is already
transforming financial services, banking and technology.
With interviews of leading fintech players from Stripe
to Shopify, the book shows how embedded finance is
leveraged to supercharge the customer experience and
provides lessons from early adopters.

RESEARCH

Fraudsters earning up to $600,000 per month

Arkose Labs, a provider of fraud deterrence and account
security, released new insights into the expanding global
ANNOUNCEMENTS fraud economy. Data in Q2 2022 State of Fraud & Account
Security shows specific attack attempts skyrocketed,
fraud "employment" increased tenfold, and fraud returns
House Financial Services approves cash bill for the most accomplished fraudsters can be eight
times higher than salaries for CEOs leading legitimate
The National ATM Council Inc. applauded a May 18, companies."The ROI for cyberattacks is greater than
2022, bipartisan vote by the House Financial Services ever, so fraudsters are willing to invest more energy in
Committee in favor of HR-4395, the Payment Choice the right mix of tools and resources to be successful and
Act of 2022. The bill is designed to preserve a choice for turn profits," said Kevin Gosschalk, founder and CEO of
consumers to use cash as “legal tender” at retail estab- Arkose Labs. "Our intelligence shows that bot attacks are
lishments throughout America. HR-4395 has received mimicking human behavior enough to evade security
solid support from consumer/public interest and privacy measures and leading to new monetization techniques."
advocates, as well as from leading domestic and global
business organizations, NAC stated, adding that there FIs could do more to combat fraud
are as many as 55 million unbanked or underbanked
Americans who rely on cash as their preferred form ID Insight, a fraud-prevention solutions provider, and
of payment for all their purchases, and many other About-Fraud, a community for fraud fighters, surveyed
Americans just want to have the option to pay with cash fraud investigators, managers and directors in late
for everyday transactions. 2021 on their roles within financial services companies.
Eighty-one percent of respondents said financial services
ICBA opposes U.S. central bank digital currency companies could be doing more to fight fraud, with 34
percent citing new tools or services as the most impor-
The Independent Community Bankers of America tant investment an organization can make to manage
expressed opposition to establishing a U.S. central bank fraud more effectively. Also, 65 percent of respondents
digital currency (CBDC). In a comment letter to the indicated the technology that enables fraudsters to com-
Federal Reserve, the ICBA said a U.S. CBDC would mit fraud is better than the technology their organiza-
introduce significant privacy and cybersecurity risks tions are using to prevent it; 46 percent said they don’t
into the nation’s monetary system and disrupt U.S. have the tools or systems needed to prevent and stop
banking stability. Specifically, the ICBA wrote, "A U.S. fraud. For details, visit https://FraudFighterResearch.com.
CBDC would obstruct the ability of banks to take depos-
its and make loans, pose privacy and cybersecurity risks, NICE spots emerging threats, suspicious patterns
provide a gateway to direct-to-consumer Fed accounts,
and damage the Fed’s ability to conduct monetary The 2022 NICE Actimize Fraud Insights report identified
policy, among other risks." The association added that and analyzed the primary fraud threats and patterns that
a U.S. CBDC would not yield benefits more effectively impacted leading global financial institutions in 2021.
than alternative methods which, according to the Fed, is Researchers found that increased utilization of mobile
a prerequisite to creating a CBDC. devices for everyday purposes, such as banking, shop-
ping and communication, heavily impacted the fraud
New book delves into embedded finance impacts landscape in 2021. Fraud increased across the board,
analysts found, from P2P payments and digital wallets
A new book on how embedded finance will revolution- to traditional check payments. NICE Actimize said it
ize the future of fintech launched at Money20/20 Europe, projects that mobile channels will continue to be a target
June 7 to 9, 2022. Entrepreneurs and fintech trailblazers throughout 2022. The data-driven research study also

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