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NewsBriefs

This article contains excerpts from news stories recently posted under Regulators have been erecting roadblocks that have kept
Breaking Industry News on our homepage. For links to these and other banks from offering stablecoins. And the cryptocurrency
full news stories, please visit www.greensheet.com/breakingnews.php. market has been rocked by the failure of the FTX exchange,
one of its largest and most trusted players. Stablecoins are
commonly defined as cryptocurrencies whose value is
pegged to a "stable" reserve asset, such as the U.S. dollar
or gold. But they can take several distinct forms. The white
paper examines the feasibility of stablecoins in the form of
digitized deposits.
Fraud costs cause sticker shock, study finds

Research released by LexisNexis Risk Solutions deems
battling fraud an expensive proposition. Based on a survey
of U.S. and Canadian firms conducted from May to July
2022, the sixth annual 2022 LexisNexis True Cost of Fraud
Study: Financial Services and Lending Report, found each
dollar lost to fraud costs U.S. financial service providers
Smart homes bring payment an average of $4.23 and Canadian firms $3.78, increasing
opportunities, study finds costs by 16.2 percent and 19.6 percent, respectively.

A new study by Juniper Research explores emerging Chris Schnieper, senior director of fraud and identity
payments in hyper-connected households, making strategy at LexisNexis Risk Solutions, observed fighting
bold predictions about how three nascent categories— fraud requires both dexterity and advanced authentication
voice assisted payments via smart speakers, connected methods to fight what he termed a complex scenario with
appliances and smart TVs—will shape future lifestyles. multiple risks occurring simultaneously.
Assessing the Smart Home Payments Opportunity proposes that "To minimize fraud, organizations can no longer rely
smart homes will continue to evolve as consumers become on manual processes or point solutions to reduce fraud,
acclimated and companies add products and services. manual reviews and costs,” he said. “Firms using a
While transactions initiated from smart speakers, smart multi-layered solutions approach that integrates identity
televisions and smart appliances are "at present the three verification and authentication within digital consumer
largest payment types within the smart homes market, experience can lower their cost and volume of successful
this will diversify over time," researchers wrote. fraud."

"In future, it is likely that home automation devices, or Merchants brace for brisk
even smart meters, could enable payments; however, at holiday weekend shopping
present, payments for energy, for example, are facilitated
by traditional billing methods." Researchers further noted Merchants were bracing for a record number of shoppers
these three payment categories are evolving at different as the holiday shopping season kicked off. An estimated
paces. Voice assisted and connected TV payments are 166.3 million consumers planned to shop during the five-
relatively mature, they noted, but appliance payments are day weekend that began Thanksgiving Day, according to
at an earlier developmental stage. a survey from the National Retail Federation and Prosper
Insights & Analytics. That's almost 8 million more people
TCH pushes case for digitized deposits than last year and the highest estimate since the NRF
began tracking this data in 2017.
Banks have legal authority to issue digitized deposits,
or stablecoins, according to a white paper issued by The Separately, eMarketer expected U.S. consumers to spend
Clearing House. "[T]he issuance of stablecoins by banks $37.3 billion for online purchases from Thanksgiving Day
and the provision of related services is simply a new through Cyber Monday. These and related research reveal
means of accepting, holding and transferring deposits, how resilient American consumers are ready to amp up
which is a core element of the banking business. spending online and in store this holiday season.

It should not require specific approval, much less be "While there is much speculation about inflation's
subject to effective denial, simply because it utilizes impact on consumer behavior, our data tells us that this
new technologies and methodologies," TCH stated. The Thanksgiving holiday weekend will see robust store traffic
determination comes at an awkward time. with a record number [of shoppers] taking advantage of
value pricing," said NRF CEO Michael Shay.

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