Latest cybersecurity reporting from selected sources.

Report Reveals Growing Trend of Fraudsters Intercepting SMS-Based VerificationFinancial institutions have historically relied on one-time passcodes as a primary authentication control for their accountholders. But OTP verification is less reliable as fraudsters increasingly exploit SMS-based verification weaknesses to carry out account takeover and payment fraud schemes.

HIPAA Settlement Small Compared to Many OthersU.S. federal regulators fined a dental practice software vendor with a seemingly lowball financial penalty for a high-stakes 2020 hack affecting 15 million individuals that the company failed to report. Maryland-based MMG Fusion agreed to $10,000.

At-Bay Cyber Insurance Claims Report Finds 83% of Financial Fraud Starts With EmailFinancial fraud remains the leading driver of cyberinsurance claims, with 83% of cases traced back to email-based attacks. Common tactics used to deceive employees include wiring funds to fraudulent accounts, generative AI-crafted emails, executive and vendor impersonation and BEC scams.

Also: Zero-Days Affect Financial Markets, SailPoint IPO Signals Market TrendsIn this week's update, ISMG editors discussed the latest "Modern Bank Heists" report and the evolving threats to financial institutions, fallout from the U.S. Department of Government Efficiency's AI-driven government shake-up, and what SailPoint's IPO signals for the cybersecurity vendor market.

Tom Kellermann's Annual Report on Key Threats to Financial SectorZero days. Supply chain attacks. APIs and cloud environments as growing threat vectors. These are among the topics discussed in this seventh annual Modern Bank Heists report, and author Tom Kellermann discusses their impact on financial institutions - and which defensive gaps need to be filled now.

Experts Weigh the Pros and Cons of Work Culture and Merging AML and Fraud TeamsA recent report found that more than 57,000 Americans fall victim to scams every day. Financial fraud is rising globally. In response, the National Automated Clearinghouse Association is pushing for real-time fraud monitoring by 2026, requiring closer collaboration between fraud and AML teams.

Report: Financial Orgs Shift to Multi-Cloud to Address Cyber Threats and RegulationFinancial institutions are increasingly adopting multi-cloud strategies to mitigate rising cyber risks and comply with complex regulations, according to a new report. Although the move enhances flexibility and disaster recovery, challenges remain, from implementation costs to a growing skills gap.

Report: Financial Orgs Shift to Multi-Cloud to Address Cyber Threats and RegulationFinancial institutions are increasingly adopting multi-cloud strategies to mitigate rising cyber risks and comply with complex regulations, according to a new report. The move enhances flexibility and disaster recovery, though challenges remain, from implementation costs to a growing skills gap.

GAO: SSA Fails to Meet Industry and Federal Electronic Verification System GoalsThe Social Security Administration is facing criticism for failing to update its fraud prevention technology, leaving financial institutions and federal authorities at risk of missing synthetic identity scams, according to a new Government Accountability Office report.

Victims Reported $5.6 Billion in Financial Losses Associated With Crypto SchemesThe FBI's Internet Crime Complaint Center on Monday issued a report revealing victims filed more than 69,000 public complaints related to cryptocurrency fraud and $5.6 billion in financial losses in 2023, while investment scams made up the bulk of losses throughout the year.

Customers Report Seeing Each Other's Bookings, Inadvertent Flight CancellationsAustralian's Qantas Airways has confirmed suffering a data breach after its app began inadvertently exposing other customers' data to each other. While the airline said no financial data was exposed, customers reported seeing other people's details, as well as unexpected flight cancellations.

NSTAC Report Calls for Federal Cybersecurity Tax Deductions and Financial GrantsThe National Security Telecommunications Advisory Committee is recommending the administration work to establish financial incentives, such as tax deductions and federal grants, for critical infrastructure owners and operators that implement enhanced cybersecurity standards.

Also: Polish Prime Minister Says Previous Administration Deployed Pegasus SpywareThis week, the Zeus leader pleaded guilty, Prudential detected hackers, U.S. telecoms have to report breaches, Microsoft patched zero-days, researchers said Chinese threat intel is faulty, ransomware hit Romanian healthcare entities, Juniper was breached and Poland allegedly previously used Pegasus.

Kansas Bank Forced to Close After CEO Allegedly Embezzled Nearly $50 MillionA watchdog report reveals how Heartland Tri-State Bank CEO Shan Hanes allegedly defrauded a local church and investment club in Kansas out of $47.1 million through a "pig-butchering" cryptocurrency scam that ultimately caused the bank to fail in 2023.

Official Says Disclosure Rule Includes Exceptions, Extensions for Smaller CompaniesThe U.S. Securities and Exchange Commission's requirement for publicly traded companies to report cyber incidents that have a material impact within four days is "not about playing gotcha with public companies," said the commission’s director of the corporation finance division.