The number of bitcoin-related scams promoted online has increased significantly in March, according to security firm ZeroFox. The company said it had identified bitcoin fraud on 8,742 social media posts linked to 3,618 unique URLs over a three-week period.
The Consumer Financial Protection Bureau's prepaid-card rule would extend error resolution and liability protection for unregistered cards, making financial institutions responsible for fraud investigation on cards without consumer information. "Here's the problem: Fraudsters are always looking for new ways to break the system, and they are quite sophisticated, so once they figure out that they can do it, it could be a big issue," said Ben Jackson, Mercator Advisory Group's director of prepaid advisory services.
Huntington Bancshares has found a head of consumer and business banking in Andy Harmening, who succeeds the retiring Mary Navarro. Harmening and Navarro have worked together on the Consumer Bankers Association board and have both chaired the board.
Experian has been fined $3 million after the Consumer Financial Protection Bureau ruled that "educational credit scores" have misled customers. The CFPB cites violation of the Dodd-Frank Act, saying Experian falsely claimed lenders use educational scores for credit decisions.
The Consumer Financial Protection Bureau plans to review its qualified-mortgage rule, which turns 5 in January, to comply with the Dodd-Frank Act. The CFPB is not bound by an executive order on regulation reduction but intends to review its rules.
Santander has received a Federal Reserve warning to improve consumer-protection standards, including strengthening oversight of subprime auto lending. No fine has been issued, but an enforcement agreement says the bank has two months to increase oversight and ensure compliance.
Wells Fargo will debut a multichannel ad campaign in April, CEO Tim Sloan says. The campaign, titled "Building Better Every Day," will focus on changes the bank has made over the past several months to counter last fall's controversy involving fake account openings.
US banks are setting new restrictions on the sharing and use of customer financial data, in part to protect that information from being compromised through third-party apps that aren't required to have the same security measures as banks. "When you think about millions of customers handing over their bank account credentials to third parties, who currently have no real oversight or examination of their security controls, you start to understand why our members get pretty nervous," said Jason Kratovil, FSR's vice president of government affairs for payments.
Congressional Republicans hope to roll back the Dodd-Frank Act through the Financial CHOICE Act, but Senate Democrats could filibuster the legislation, House Financial Services Committee Chairman Jeb Hensarling, R-Texas, noted Wednesday. He said some elements of the bill could pass through reconciliation, which requires only 51 votes, and added that he would introduce "components" of the GOP bill as standalone legislation.
Republicans are justified in seeking to remove Richard Cordray as director of the Consumer Financial Protection Bureau, writes Gregory Angelo of Log Cabin Republicans. The CFPB paid a Democratic consultancy $16 million last year to publicize marketing materials, has collaborated with a left-wing advocacy group and no longer adequately represents the public, Angelo contends.