Latest cybersecurity reporting from selected sources.

New White EOs Tighten Know Your Customer Rules While Easing Fintech OversightBoth the White House's recent executive orders deal with the financial services industry and discuss the importance of integrity and innovation in combatting fraud. But read them together and another picture emerges that could confuse seasoned fraud and compliance practitioners.

Fraud Expert Ken Palla on Why Detection Controls Still Lag BehindFraud continues to climb even as banks invest heavily in detection tools and analytics. The gap between technology spending and fraud losses reflects a deeper issue in how financial institutions approach scam prevention, says Ken Palla, retired director at MUFG Bank.

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.

Similar Fraud Rates Across Documents Reveal Weaknesses in Verification WorkflowsOne in 16 documents processed across financial institutions last year showed signs of manipulation, fabrication or misrepresentation. Most fraud teams want better document detection and tighter review queues. But financial institutions may be looking in the wrong place.

Fintech Giant Says Personal Data Exposed for About 100 Business Users of Loan AppFinancial services firm PayPal said it discovered a data breach that lasted for six months, exposed some business customers' personal information and led to fraudulent charges. The company said about 100 customers were affected, and that it has fully refunded them for fraudulent charges.

Analysts Urge Mandatory Guardrails on AI Agents, Identity and PrivilegeSecurity leaders are pressing Treasury to embed enforceable guardrails - covering adversarial testing, AI inventory, identity privilege mapping and real-time monitoring - into its forthcoming financial-sector AI guidance as deepfake fraud, data poisoning and autonomous agent risks escalate.

Fraud Specialist David Barnhardt on Addressing Authentication Risks of Agentic AIFinancial institutions are racing to deploy AI agents that can initiate payments, approve transactions and freeze accounts. But traditional authentication frameworks assume there's a human on the other end. As agentic AI use grows, banks are facing an authentication crisis that demands new controls.

Cadence Bank's Brent Phillips Focuses on Controls for Online Account OpeningFinancial institutions face rising losses from first-party fraud schemes that begin with online account opening. One of the most effective ways to reduce exposure involves practical, risk-based controls that limit how much trust new customers receive before their behavior can be established.

ACAMS Says Investigators Need Better Data, Architecture and AI-Based DetectionThe financial system has a trust problem driven by artificial intelligence, and CIOs looking to prevent fraud and other financial crimes will only face more challenges as criminals find new ways to use AI to swindle, according to an Association of Certified Anti-Money Laundering Specialists survey.

ACAMS Says Investigators Need Better Data, Architecture and AI-Based DetectionThe financial system has a trust problem driven by artificial intelligence, and CIOs looking to prevent fraud and other financial crimes will only face more challenges as criminals find new ways to use AI to swindle, according to an Association of Certified Anti-Money Laundering Specialists survey.

Also: $7M Saga and $5M Makina Finance ExploitsThis week, South Korea dismantled a $102 million money laundering ring, Saga paused SagaEVM after a $7 million exploit, Makina Finance lost $5 million, a Utah man sentenced to three years for fraud and illegal cash conversion and a software flaw let traders win ethereum transaction auctions for free.

Easy-to-Use Deepfake Services for Criminals Rapidly Improving, Researchers WarnFinancial firms' fraud and risk teams must bolster know-your-customer checks in the face of increasingly effective and affordable deepfake technology and services that can generate synthetic identities, convincing face-swaps and defeat "live" biometric checks to bypass defenses, warn researchers.

Little Progress Made to Mandate Customer Reimbursement for Financial ScamsFinancial scams and synthetic identity fraud showed no signs of slowing in 2025, as regulators focused on fraud prevention over reimbursement for victims. But some countries joined the United Kingdom in advancing new anti-scam measures that focus on prevention and industry accountability.

Also: npm Packages Infiltrated, FBI Issues Fraud Alert, Campbell's Soup Cans CISOThis week, a recently fixed Oracle flaw is being actively exploited, Shelly tackled Pro 4PM DoS bug, "Shai-Hulud 2.0" hit npm, the FBI warned of rising bank account takeover scams, regulators fined Comcast over a vendor breach, Iberia reported a supplier incident and Campbell's canned its CISO.

Also: UK Fraud Investigators Make Arrests in $28M Basis Markets Rug-Pull ProbeThis week, World Liberty Financial scrambles to secure user funds, the U.K.'s Serious Fraud Office arrests two people over a $28M Basis Markets rug-pull probe, a Gana Payment hack drains $3.1M and Crypto Dispensers weighs a $100M sale following money-laundering charges against its CEO.

Ping Identity and Ameris Bank on Stopping Fraud Without Alienating Legitimate UsersIn the latest "Proof of Concept," Rich Keith, director of product and solutions marketing at Ping Identity, and Todd Smith, senior vice president of customer IAM at Bank Ameris, joined ISMG editors to discuss how AI-based fraud is breaking trust models faster than many systems can adapt.

Cyber Leaders Address AI Threats, Compliance Resilience, Zero TrustFrom AI‑driven fraud schemes to tightening regulations and identity threats, ISMG's New York Fraud Prevention and Financial Cybersecurity Summits brought together CISOs, investigators and risk leaders to share practical strategies for strengthening defenses and building true resilience.

Vigilance Cyber Security's Moriah Hara on AI Automation and Responsible AIMohira Hara, CISO and AI security, risk and governance consultant at Vigilance Cyber Security, says AI is reshaping financial services by accelerating anti-money laundering efforts, automating SOC functions and driving stronger governance frameworks that make CISOs central to managing AI risk.

Nacha's Devon Marsh on Banks Proving They 'Reasonably Intended' to Identify FraudNacha's 2026 rule amendments pivot from "commercially reasonable" to "reasonably intended" fraud detection standards. Nacha's Devon Marsh explains what this shift means for RDFIs and ODFIs and how banks and financial institutions can define and demonstrate reasonable practices.

Financial Institutions Break Down Silos to Combat Faster, AI-Powered ThreatsBanks face AI-powered fraud attacks and stricter compliance demands. Unified platforms that integrate security, fraud detection and compliance help institutions respond faster while empowering human analysts to focus on strategic decisions.