Payments

The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.

Payments News

SEC warns investors about crypto fraud

May 30, 2024

The Securities and Exchange Commission issued an investor alert on how fraudsters use cryptoassets to lure victims and hide their identities, which makes recovering stolen funds more difficult.

Details: The SEC said fraudsters use a variety of techniques to convince investors to hand over their money, including:

  • Sending messages through social media and texts.

  • Exploiting the hype around emerging technologies, such as artificial intelligence.

  • Impersonating trusted sources, including the SEC.

  • Pumping up the price of a cryptoasset and selling at the investor’s expense.

  • Demanding additional costs that they claim will allow investors to withdraw from their account or recover losses.

ICBA Advocacy: In a comment letter earlier this year, ICBA said recordkeeping and reporting requirements on crypto transactions are not enough to adequately protect U.S. consumers and businesses. It called on FinCEN to do more to combat crime enabled by crypto mixers.

‘Pig Butchering’ Scam: Recent ICBA blog posts spotlight the growing “pig butchering” scam, in which fraudsters use cryptocurrencies to defraud victims, and the need for a policy response.