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NewsBriefs

This article contains excerpts from news stories recently posted under by BNY Mellon, explores the implementation of instant
Breaking Industry News on our homepage. For links to these and other recurring payments. Josh Karoly, director of payments at
full news stories, please visit www.greensheet.com/breakingnews. Netflix and chair of the FPC work group, emphasized the
php. transformative potential of instant recurring payments,
highlighting their speed, convenience and security.

The report outlines key considerations for instant
recurring payments, including ease of signup, support
If you don't fix security problems, crooks will come for notifications, flexibility in managing payments and
robust security. It stresses the importance of strong yet
Verizon Business's 2024 Data Breach Investigations Report frictionless authentication to prevent fraud. The report
highlighted a significant increase in cyberattacks in also identifies best practices for financial institutions,
2023, with 30,458 security incidents and 10,626 confirmed such as using strong customer authentication and real-
breaches, double that of 2022. Vulnerability exploitation time monitoring. Simplifying digital payment standards
nearly tripled, largely due to ransomware actors targeting is crucial for industry-wide adoption, driving innovation,
unpatched zero-day vulnerabilities. Chris Novak, and improving customer experiences, according to FPC
senior director for cybersecurity consulting at Verizon Executive Director Reed Luhtanen.
Business, emphasized the persistent threat of zero-day
vulnerabilities, which overshadowed concerns about Rhetoric over Credit Card
artificial intelligence in cyberattacks. Competition Act heating up

The Cybersecurity Infrastructure and Security Agency Senator Richard Durbin, D-Ill., criticized Visa, Mastercard,
found it took an average of 55 days to remediate 50 percent and major airlines companies for opposing the Credit
of critical vulnerabilities. Social engineering and failure Card Competition Act, which, he stated, aims to increase
to patch vulnerabilities remain major causes of breaches. competition and prevent deceptive practices in rewards
Notably, 15 percent of breaches involved third parties, programs. Durbin denied that his bill will end rewards
while human error and social engineering accounted for programs and accused critics of misleading the public. A
many incidents. Extortion, including ransomware, was report from the Consumer Financial Protection Bureau,
involved in 32 percent of breaches, and espionage attacks requested by Durbin, revealed that airlines and banks
were prevalent in the Asia-Pacific region. However, often alter rewards program terms, reducing their value.
reporting practices have improved, indicating increased CFPB Director Rohit Chopra emphasized the need to
cybersecurity awareness. protect consumers from deceptive practices and promote
fair competition in credit card rewards.
BlueSnap settles FTC charges
for working with bad actors If passed, Durbin's bill, which has bipartisan support,
would require large banks to route credit card transactions
The Federal Trade Commission took enforcement action over at least two networks, only one of which could be
against BlueSnap Inc., its former CEO Ralph Dangelmaier, Visa or Mastercard. The Merchants Payments Coalition
and Senior Vice President Terry Monteith for allegedly supports the bill, claiming it could save merchants and
facilitating fraudulent transactions. The parties reached customers $16.4 billion annually. Opponents stated it could
a settlement requiring the defendants to pay $10 million diminish rewards programs and highlighted problematic
and adopt measures to prevent fraud. The FTC found that issues with the previously enacted Durbin Amendment,
BlueSnap processed millions in credit card payments for which capped debit card interchange fees. Durbin noted
ACRO Services from 2019 to 2021 despite clear warnings that Visa, Mastercard and airlines declined to discuss the
and high dispute rates. ACRO was sued for fraud in 2022. bill publicly before the Senate Judiciary Committee.

BlueSnap and its executives ignored additional red Also find us on Facebook,
flags, including advisories from payment processors
and alarming chargeback rates. Monteith allegedly LinkedIn & Twitter for the
disregarded direct warnings from American Express. The most up-to-date stories,
FTC claims Dangelmaier and Monteith advised ACRO can’t miss events and newest
on evading fraud detection, continuing illicit billing industry announcements.
until forced to shut down. The settlement bans BlueSnap
from processing payments for high-risk businesses and
mandates enhanced client screening.

Recurring payments in an instant-payments world
The volume of subscription payments in the U.S. doubled https://www.facebook.com/TheGreenSheetInc
between 2019 and 2022, per eMarketer. And a new https://www.linkedin.com/company/the-green-sheet
report by the U.S. Faster Payments Council, sponsored https://twitter.com/The_Green_Sheet
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