Fed's Barr to banks: Bolster AI defenses
Cybercriminals are increasingly turning to Generative AI to facilitate fraud and create highly deceptive digital impersonations of individuals for identity-based scams. During a speech last week at the Federal Reserve Bank in New York, Federal Reserve Governor Michael Barr highlighted the technology's potential to supercharge identity fraud and bypass traditional fraud detection methods. Barr urged banks to strengthen their AI defenses with advanced AI tools before deepfake attacks become more widespread, reports Banking Dive.

Deepfake technology is posing real and immediate risks for banks. Learn more and take a deeper dive into this emerging threat in our BankersOnline Deepfake Deception: The New Face of Financial Fraud article.

Banking regulators rescind crypto guidance
Regulatory barriers that have been preventing banks from exploring crypto integration are beginning to ease as banking regulators issue additional clarification on banks involvement in crypto-asset and related activities. The Federal Reserve and FDIC have have reversed earlier guidance discouraging banks from engaging with cryptocurrency, signaling a shift toward regulatory openness for digital asset activities. FDIC has the details.

Treasury tracking cross-border payments
In a significant move to combat illicit financial activities, the U.S. Treasury's Terrorist Finance Tracking Program (TFTP) is increasing its scrutiny of cross-border payments, particularly those linked to Mexico. Financial institutions should monitor the TFTP's pivotal role in the oversight of these new compliance measures, including geographic targeting orders (GTOs), stricter reporting requirements, and hefty penalties for failure to report. JD Supra has the details.

Stablecoin-powered payments network
Cross-border instant payments pose challenges for banks, including currency conversion, payment system interoperability, and compliance with international standards like ISO 20022. To address these hurdles, fintech Circle is launching a stablecoin-powered payments network designed to rival Swift, enabling banks to facilitate real-time, low-cost, and regulatory-compliant transactions using regulated stablecoins, reports PYMNTS.

Boosting instant payments adoption
The Federal Reserve's FedNow service that facilitates instant payments has expanded to include over 1,300 financial institutions across 50 states, reports Payments Dive. The U.S. Faster Payments Council is advocating for an open digital directory that links email addresses and phone numbers to financial accounts to streamline real-time payments and increase adoption among consumers and businesses. Payments Dive has the details.

AI-powered AML compliance tool
Cybercriminals are increasingly harnessing AI to create convincing scams, fake identities, automated phishing attacks, and bypass traditional security measures. To help banks combat AI-driven fraud, cloud-based banking software provider CSI has launched an AI-powered AML compliance and fraud detection platform that integrates with core banking systems and offers proactive defenses against today's evolving sophisticated cyber threats. Get more details at Fintech Finance News.

Bad bots targeting financial services
A few bad apples can spoil the bunch – and across cyberspace, bad bots (automated software programs) are on the rise. According to a new report from cybersecurity firm Imperva, more than half of all web traffic now comes from bots, with a growing number of malicious bots targeting banks. AI-driven bots are fueling sophisticated attacks, bypassing security controls, exploiting vulnerabilities, and automating large-scale fraud. The report highlights a sharp uptick in Account Takeover (ATO) attacks, underscoring the growing threat bots pose to the financial services sector. Security Boulevard has the details.

• Help Net Security: Phishing emails delivering infostealers surge 84%
• PYMNTS: 42% of suspicious banking activity linked to identity fraud
• Help Net Security: Cyber threats now a daily reality for one in three businesses
• Help Net Security: 2025 Data Breach Investigations Report: Third-party breaches double
• Bleeping Computer: New Android malware steals your credit cards for NFC relay attacks
• Cybersecurity News: Ransomware attacks on banks costs an average of $6.08 million...and more
• IC3: Cybercriminals impersonating employee self-service websites to steal victim information and funds

Visit the Scams page for more scam, malware, and breach alerts.

• US-CERT: Current Activity
• Cyber Scoop: Hackers hit security device defects hard in 2024
• Cybersecurity Dive: Threat groups exploit resurgent vulnerabilities
• Help Net Security: Exposed and unaware: The state of enterprise security in 2025
• gbhackers: CISA issues five ICS advisories highlighting critical vulnerabilities
• Bleeping Computer: Microsoft fixes Windows Server 2025 blue screen, install issues
• Infosecurity Magazine: Verizon's DBIR reveals 34% jump in vulnerability exploitation

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