Verizon Business's 2024 Data Breach Investigations Report highlighted a significant increase in cyberattacks in 2023, with 30,458 security incidents and 10,626 confirmed breaches, double that of 2022. Vulnerability exploitation nearly tripled, largely due to ransomware actors targeting unpatched zero-day vulnerabilities. Chris Novak, senior director for cybersecurity consulting at Verizon Business, emphasized the persistent threat of zero-day vulnerabilities, which overshadowed concerns about artificial intelligence in cyberattacks.
The Cybersecurity Infrastructure and Security Agency found it took an average of 55 days to remediate 50 percent of critical vulnerabilities. Social engineering and failure to patch vulnerabilities remain major causes of breaches. Notably, 15 percent of breaches involved third parties, while human error and social engineering accounted for many incidents. Extortion, including ransomware, was involved in 32 percent of breaches, and espionage attacks were prevalent in the Asia-Pacific region. However, reporting practices have improved, indicating increased cybersecurity awareness.
The Federal Trade Commission took enforcement action against BlueSnap Inc., its former CEO Ralph Dangelmaier, and Senior Vice President Terry Monteith for allegedly facilitating fraudulent transactions. The parties reached a settlement requiring the defendants to pay $10 million and adopt measures to prevent fraud. The FTC found that BlueSnap processed millions in credit card payments for ACRO Services from 2019 to 2021 despite clear warnings and high dispute rates. ACRO was sued for fraud in 2022.
BlueSnap and its executives ignored additional red flags, including advisories from payment processors and alarming chargeback rates. Monteith allegedly disregarded direct warnings from American Express. The FTC claims Dangelmaier and Monteith advised ACRO on evading fraud detection, continuing illicit billing until forced to shut down. The settlement bans BlueSnap from processing payments for high-risk businesses and mandates enhanced client screening.
The volume of subscription payments in the U.S. doubled between 2019 and 2022, per eMarketer. And a new report by the U.S. Faster Payments Council, sponsored by BNY Mellon, explores the implementation of instant recurring payments. Josh Karoly, director of payments at Netflix and chair of the FPC work group, emphasized the 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 for notifications, flexibility in managing payments and robust security. It stresses the importance of strong yet frictionless authentication to prevent fraud. The report also identifies best practices for financial institutions, such as using strong customer authentication and real-time monitoring. Simplifying digital payment standards is crucial for industry-wide adoption, driving innovation, and improving customer experiences, according to FPC Executive Director Reed Luhtanen.
Senator Richard Durbin, D-Ill., criticized Visa, Mastercard, and major airlines companies for opposing the Credit Card Competition Act, which, he stated, aims to increase competition and prevent deceptive practices in rewards programs. Durbin denied that his bill will end rewards programs and accused critics of misleading the public. A report from the Consumer Financial Protection Bureau, requested by Durbin, revealed that airlines and banks often alter rewards program terms, reducing their value. CFPB Director Rohit Chopra emphasized the need to protect consumers from deceptive practices and promote fair competition in credit card rewards.
If passed, Durbin's bill, which has bipartisan support, would require large banks to route credit card transactions over at least two networks, only one of which could be Visa or Mastercard. The Merchants Payments Coalition supports the bill, claiming it could save merchants and customers $16.4 billion annually. Opponents stated it could diminish rewards programs and highlighted problematic issues with the previously enacted Durbin Amendment, which capped debit card interchange fees. Durbin noted that Visa, Mastercard and airlines declined to discuss the bill publicly before the Senate Judiciary Committee. 
This article contains excerpts from news stories recently posted under Breaking Industry News on our homepage. For links to these and other full news stories, please visit www.greensheet.com/breakingnews.php.
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.
Prev Next
