Welcome to the Top 3 Innovating Payments News Headlines for the Week of Aug. 4. This week's roundup highlights transformative trends shaping the payments landscape. First, Bank of America deepens its partnership with Ripple, marking a pivotal moment in the adoption of digital assets and stablecoins by major financial institutions. Next, the Federal Reserve rolls out two new online toolkits designed to combat scams and check fraud, empowering both consumers and banks with proactive defenses. And finally, FinCEN-the Financial Crimes Enforcement Network-issues an urgent advisory urging vigilance among financial institutions in monitoring and reporting suspicious activity linked to convertible virtual currency (CVC) kiosks.
Read on to learn more.
1. How Bank of America's Deepening Ripple Partnership Transforms Payments. (Cryptorank)
In a milestone that marks the growing fusion of traditional finance and blockchain technology, Bank of America has extended its partnership with Ripple by integrating Ripple's RLUSD stablecoin within its internal payments workflow. The development is not just a milestone for Ripple (XRP) but also a watershed transformation in how major financial institutions are adopting digital assets and stablecoins as legitimate payment instruments. (Read more.)
2. Fed Unveils Two Online Toolkits for Scams and Check Fraud Mitigation (Fed Payments Improvement)
Payments fraud continues to grow and impact individuals and organizations alike. According to the Federal Trade Commission (Off-site), consumers reported losing more than $12.5 billion to fraud and scams in 2024, up 25% from the prior year…The Federal Reserve has released two new toolkits - the Scams Mitigation Toolkit and Check Fraud Mitigation Toolkit…These toolkits complement a Synthetic Identity Fraud Mitigation Toolkit that was released in 2022. (Read more.)
3. FinCEN Issues Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity (FinCEN)
Today, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) issued a Notice urging financial institutions to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency (CVC) kiosks. While CVC kiosks can be a simple and convenient way for consumers to access CVC, they are also exploited by illicit actors, including scammers. The risk of illicit activity is exacerbated if CVC kiosk operators fail to meet their obligations under the Bank Secrecy Act (BSA). (Read more.)
Where does your financial institution stand in adopting digital assets? What tools do you use to stop fraud?
Check back soon for our next edition, which will spotlight the industry's most pressing developments. Meanwhile, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, AFPP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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