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NewsBriefs

This article contains excerpts from news stories recently posted under Cybersecurity efforts ramp up
Breaking Industry News on our homepage. For links to these and other amid rising threats, losses
full news stories, please visit www.greensheet.com/breakingnews.
php. Ransomware attacks surged in the second quarter of 2024,
with a 16 percent increase from the previous quarter and
1,248 recorded victims, according to Corvus Insurance's
Cyber Threat Report. This rise is driven by new ransom-
ware groups like PLAY, Medusa, and RansomHub follow-
ing the takedown of groups such as LockBit and BlackCat.

Researchers noted that average ransom demands have
risen by 102 percent, now exceeding $1.5 million per in-
cident, with payments averaging over $626,000. Attackers
Consumers demand payment choice increasingly use double-extortion tactics, threatening to
release stolen data unless paid, with data theft involved in
A new Paysafe report reveals that consumers are conscious 93 percent of incidents.
of both payment options and prices when shopping. The
study, conducted with Sapio Research, surveyed 14,500 Meanwhile, Binance, a blockchain platform, reported pre-
people across 14 countries, highlighting that 43 percent venting over $2.4 billion in potential losses from scams
of consumers abandon online shopping carts when their and fraud from January to July 2024, protecting 1.2 million
preferred payment method isn't available. Additionally, users. The company’s risk management system, combin-
63 percent are concerned about losing cash as a payment ing AI with manual review, detected and flagged suspi-
option, and 44 percent want to pay for online purchases cious transactions, particularly during the vulnerable
using cash at a local store. withdrawal stage.

Security remains a top priority, with 54 percent of respon- These trends highlight the urgent need for advanced,
dents stating that it influences their online payment choic- multilayered security strategies to combat evolving cyber
es. Younger consumers (ages 18-43) are driving demand threats.
for diverse payment methods like digital wallets, e-cash,
and cryptocurrencies, while also being open to AI-pow- Federal regulators consider risks
ered payments. In contrast, 33 percent of those over 60 are in bank-fintech arrangements
uncomfortable with AI in payments.
Federal regulators, including the Federal Reserve, FDIC,
The report emphasizes the importance for businesses to and the Office of the Comptroller of the Currency, are
offer diverse, secure payment options to attract and retain seeking to understand risks in bank-fintech partnerships
customers, as 47 percent of consumers feel uneasy enter- distributing banking products to consumers and busi-
ing financial data online. nesses.
Fraud tarnishes ecommerce gleam On July 25, 2024, they issued a joint statement and a re-
Ecommerce has seen rapid growth, with global sales quest for public and industry feedback on potential risks,
reaching $5.8 trillion in 2023 and projected to exceed $8 with comments due by Sept. 30. The statement highlights
concerns over these partnerships, including lack of bank
trillion by 2027. However, this growth has been accom-
panied by a rise in returns, including fraudulent ones. A management controls, insufficient risk management, and
compliance issues but imposes no new regulatory require-
report by Datos Insights revealed that many U.S. and UK
merchants face return rates of 10 to 35 percent, with 21 ments.
percent of merchants in the study reporting over half of
their returns as fraudulent or abusive. The call for feedback follows the collapse of Synapse Fi-
nancial Technologies, a fintech company that left over
100,000 Americans locked out of accounts with $265 mil-
Fraudulent tactics include friendly fraud, through which lion in limbo due to disputes with partner banks.
customers exploit consumer protection laws or misrep-
resent returns. To combat this, Mastercard’s First-Party Regulators noted that fintech companies play a critical
Trust program and Visa’s Compelling Evidence 3.0 initia-
tive were launched to help merchants present evidence role in maintaining deposit records, but they may not
align with banks' core systems. The incident has sparked
against fraudulent chargebacks and protect against first-
party misuse. concerns over the stability of the banking-as-a-service
model, prompting lawmakers to demand action to protect
affected consumers.
Despite these measures, many merchants lack the tools
to effectively handle fraud, leaving them vulnerable and
eroding trust in ecommerce transactions.

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