Comments
Could Banks Hold Back Faster Payments in the U.S.?
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
Byurcan
50%
50%
Byurcan,
User Rank: Author
2/25/2014 | 7:07:56 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
Definitely, also as mobile payments technology to become more popular, it also can help detect fraud quicker, i.e. a bank sending someone a SMS message about a possible a fraudulent transaction, as oppsed to a phone call, or , forbid, a letter.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
2/25/2014 | 6:18:09 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
Security is one of the areas that the Fed is looking at in examining faster payments. Definitely will need to have fraud monitoring systems in place that are capable of handling the volume and velocity of transactions.
Greg MacSweeney
50%
50%
Greg MacSweeney,
User Rank: Author
2/25/2014 | 2:29:54 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
How true. Everyone wants speed, but with speed there is a bigger opportunity for fraud and scams. I don't see the quest for faster payments going away, though. Instead, I think banks will need to do a better (faster) job on the clearing side. It can be done and the technology is available, but banks have to be willing to make the investment.
EdP107
50%
50%
EdP107,
User Rank: Apprentice
2/22/2014 | 8:39:35 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
As a financial crimes investigator, I have no problem with speeding up transactions as long as you can speed up the verification of funds side as well. Currently I get several calls from bank investigators each week regarding forged checks. Everyone assumes that if a check is paid out that it has "cleared". This is why overpayment scams and secret shopper scams are so successful. The bad guys count on the check being paid out and the victim sending the money on before the bank is told that the check or account was no good. Then the bank victimizes the scam victim by freezing their account when all the bank had to do was wait for the funds to truly clear.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
2/21/2014 | 8:29:37 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
Yeah I think the point about wire fees in the article is especially relevant. Banks are really going to want to protect that fee income, and unless they feel pressure from customers to speed up payments, there really isn't an incentive for them to try and participate in this. A lot of arm twisting is the only way to get this done.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
2/21/2014 | 8:27:12 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
I was under the impression that the UK was doing a sort of staged rip and replace, and they were taking out the ACH. Thank you for correcting me on that. You make a great point about the current U.S. system sliding backwards by the day. The Fed says it will take at least 10 years to replace the current system, so you wonder what kind of state we'll be in by the time they actually finish the project. Likely the speed of innovation could pass by whatever is implemented by the Fed in that 10 years.
Greg MacSweeney
50%
50%
Greg MacSweeney,
User Rank: Author
2/21/2014 | 7:13:19 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
Great insights here. There are many issues and players involved here, and each seem to be moving in different directions. Whatever "solution" is selected, it is going to take a lot of work (and some arm twisting) to get everyone on board.
Gareth Lodge
50%
50%
Gareth Lodge,
User Rank: Apprentice
2/20/2014 | 9:53:24 AM
re: Could Banks Hold Back Faster Payments in the U.S.?
To clarify, the UK didn't truly rip and replace. Whilst undoubtedly new work was required (I worked on the programme), equally it leverages both the existing ATM network and the ACH infrastructure.
The US faces a bigger challenge because of size obviously, but equally the ACH network*s* are starting far further back in terms of features and functionality. The analogy is perhaps the dilemma the fixed-line telco industry faces. It faces increasing competition - mobile, cable companies, etc, yet is seen as utility and unsexy. It has the choice of tweaking the copper it has laid decades ago to eek out more bandwidth, or it can start laying fibre at huge cost, and look to the future. Over a 10-20 year period, cost aside, the answer is obvious. But signing off the bill today, and figuring who pays is very different.
So the current ACH system maybe old but is fit for purpose; equally, on a global basis, it's score card is probably D-, and sliding backwards on an almost daily basis. Many of the complaints we hear about ACH in the US are actually unique to the US because of the system. Perhaps a rip & replace would not only achieve real-time, but also fix the broader issues too.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
2/18/2014 | 8:09:00 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
PayPal already offers real-time payments, but until you see a lot of people moving more transactions to PayPal from their banks, the banks won't be incentivized to change. Of course, by the time that people start moving those transactions to PayPal it might be too late for the banks to get things done.
Jonathan_Camhi
50%
50%
Jonathan_Camhi,
User Rank: Author
2/18/2014 | 8:06:41 PM
re: Could Banks Hold Back Faster Payments in the U.S.?
It could hypothetically and we've seen some banks achieve faster payments riding the ACH rails. I think the Fed has kind of gotten caught up in the examples of the countries that have gone a rip-and-replace route like the U.K. They see the success that the U.K. is having and see a lot of potential there as a result of what they're seeing. But they're still in the exploratory phase of figuring things out, and it's too early to tell how they're going to go about it.
Page 1 / 2   >   >>


Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
Security Operations and IT Operations: Finding the Path to Collaboration
A wide gulf has emerged between SOC and NOC teams that's keeping both of them from assuring the confidentiality, integrity, and availability of IT systems. Here's how experts think it should be bridged.
Flash Poll
New Best Practices for Secure App Development
New Best Practices for Secure App Development
The transition from DevOps to SecDevOps is combining with the move toward cloud computing to create new challenges - and new opportunities - for the information security team. Download this report, to learn about the new best practices for secure application development.
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2017-0290
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

CVE-2016-10369
Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

CVE-2016-8202
Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

CVE-2016-8209
Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

CVE-2017-0890
Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.

Dark Reading Radio
Archived Dark Reading Radio
In past years, security researchers have discovered ways to hack cars, medical devices, automated teller machines, and many other targets. Dark Reading Executive Editor Kelly Jackson Higgins hosts researcher Samy Kamkar and Levi Gundert, vice president of threat intelligence at Recorded Future, to discuss some of 2016's most unusual and creative hacks by white hats, and what these new vulnerabilities might mean for the coming year.