Fraud detection

Cyberthieves using malicious software discovered by IBM Security have stolen $4 million from business customers of two dozen financial services providers this month, IBM said.

Technology at many banks has been assembled haphazardly over years. That makes for complex systems with lots of connections. Those points are prime targets for cybercriminals to find a way in.

As one of the most antagonistic lobbying battles in Washington escalates -- where financial institutions like JPMorgan Chase and Visa are sparring with companies such as Walmart over credit card swipe fees -- a powerful ally is again sticking up for the retailers.

Cybercriminals and hackers are increasingly targeting people, and not just technology, in an attempt to breach financial institutions.

Commercial bank clients are increasingly looking to replace physical corporate cards with virtual ones to streamline bookkeeping and limit risk. The adoption of such solutions is a good sign for mobile payments overall.

Nacha, the bank industry group that oversees the automated clearing house network, has appointed six industry executives to its board.

The potential for more convergence between financial products and physical products raises a whole host of data and privacy issues that banks must deal with proactively.

Authentication methods meant to keep cybercriminals from taking over accounts can also lock out legitimate users. This old dilemma is growing more vexing as cybercriminals get better at impersonating customers and as regulators increasingly push multifactor authentication.

Bank regulators will stiffen their requirements and identity theft will escalate, but banks will toughen up their defenses.

Despite increased investment and development in the consumer payments space around mag stripe, EMV and contactless payments solutions, there is still a huge concern when it comes to data theft.