Money Moves

A New Way to Transfer Cash

2008-11-19T15:49:00.003-05:00

New company, Privier Inc., is releasing a product that will let people without bank accounts send money using ATM machines. The person sending the money would set up an account tied to their cell phone, deposit the money into an ATM from a participating financial institution, and then direct the recipient to an ATM where they can withdraw the cash using an authorization code.

Privier is touting this service as a low cost option for the "un-banked", and it could be for the un-banked that live near a participating FI (and the someone they want to send money to lives near a participating FI). It's an interesting solution and maybe it will lead to other services tied to ATMs. It certainly seems that banks and credit unions could be doing more with their ATMs and the ATM networks they belong to.

Privier Press Release

Sloooooow Online Transfers

2008-10-23T12:00:00.003-04:00

Our new uTransfer product is suffering this same problem and we have been hearing complaints from our Indigo members. Indigo is our new online only account and the only way to get money into, or out of, it is to use uTransfer. Our hope with Indigo was to grab some people in our membership area that are intrigued by ING Direct but are wary of sending their money to a bank that has no offices in the state, let alone the Flint area. That so far has not worked so well. Most of our Indigo members are also Dort Federal members, members who have grown accustomed to our instant cross member transfers and they don't understand why it takes 3 business days to move money from one Dort account to another. We have considered turning on cross member transfers for Indigo users but are afraid it would give what are supposed to be online only members too many opportunities to walk into a branch and cut into our cost savings.

For now we are going to try to wait out the problem and maybe some time down the road look for another A2A vendor.

CUs can attract Gen Y with 'Second Life' - Really?

2008-02-05T08:51:00.001-05:00

I'll admit to not knowing how to reach the elusive Gen Y, but I know what won't work. This won't work. A credit union island in Second Life? Let's say you've taken the time to set up a Second Life account, familiarize yourself with the interface, and started exploring. What are you looking for? Personal financial information? Second Life is a virtual world and the appeal is you can create a virtual You that does all the stuff that you can't do in the real world. Talking about fees and interest rates is not the stuff of fantasy.

Update: Here's a story about ING ending their Second Life presence that helps make my case.

Blinger - One version of the future of mobile banking...

2008-02-01T15:41:00.000-05:00

...not a likely one, or a good one, but it is a version.

The blinger, from what I can tell, is meant to be a portable, personal ATM machine. As to how this works, and how blingnation is able to wirelessly access the ATM network, I'm clueless. From the looks of their parent site, blingnation, this may be a prototype that is years from reality or a joke. One thing is clear, though: We all need another single purpose gadget to carry around.

Skyfire brings desktop-quality browsing to your phone

2008-01-28T16:47:00.000-05:00

Here's some support for my previous post re mobile banking. We won't have to create mobile sites for our members to access Internet banking on their phones because mobile browsers will be so good at rendering the web.

Mobile Banking

2008-01-04T12:02:00.000-05:00

I've, for the time being at least, convinced my colleagues here at the credit union that mobile banking is not yet worth the time and expense. I know being able to access your accounts via your phone's browser or SMS is the latest next big thing but I'm not seeing it. Here are my problems with it:

More members use our phone service than Internet banking for balance inquiries and transfers which tells me members are already using their cell phones to manage their accounts.
Members that are likely to use mobile banking are also very likely to have quick access to a PC with high-speed Internet access and can put off whatever they need to do until they get back in front of it.
The iPhone has shown what the next generation of phone browsers is going to look like and they aren't going to require optimized sites.

I don't think I am looking at this from the perspective an old timer fighting progress. I just think the technological advances coming for cell phones and the increasing ubiquity of high-speed Internet access make mobile banking a costly stop gap measure.

Intuit Building Quicken Online

2007-08-14T14:16:00.000-04:00

Quicken is planning on offering an online version of their software.

I'm surprised by this. I shouldn't be; I should have seen it coming. I was under the impression that Quicken, because of their ownership of Digital Insight, was going to offer this functionality only through Digital Insight customer sites. I don't think this will have a deleterious effect on Digital Insight but I can't help feeling a bit betrayed.

Young adults unaware of debit card risks

2007-08-01T15:04:00.000-04:00

Using a debit card is risky? Who knew? I'm a not so young adult and I was unaware of the risks like...wait for it...overdrafts. Or fraudulent transactions. Or increased liability on fraudulent transactions. CUNA's advice to you, unsuspecting debit card user: use a credit card. Great advice! So, because you may be liable for the purchases made on your debit card if it is stolen (and if you don't report it stolen within 48 hours and if then you don't report it stolen within 60 days, and you have a lot of money in your checking account) you should use a credit card since you are only liable for up to $50. It's pretty clear cut to me. Debit cards bad. Credit cards good. Thanks, CUNA.

The Wesabe Firefox Uploader

2007-08-01T12:37:00.000-04:00

Okay, this makes Wesabe really useful. The ability to automatically update any account totally changes the game. Now I don't have to set a reminder to download and upload my account info; Wesabe just does it for me. I only have to login to Wesabe, which the uploader also makes super easy, and tag my untagged items. Plus, they've figured what to do with the confirmation screens that you see everytime you make a purchase or transfer online. Now, you've got a place to put them that doesn't include a printer and a file cabinet.

Well done, Wesabe.

Quicken: The Devil's in the Details

2007-07-25T16:47:00.000-04:00

I just had an interesting meeting with a member. It was interesting mainly because I was meeting with a member. I talk to members on the phone all the time but I don't often meet them face to face. It was also interesting to see the level of involvement some members have with their personal finances. Jim, the member I talked to, is having trouble getting our online banking and Quicken to work together. We sat down with numerous screen shots, brought up his Quicken with GoToMyPC, and browsed Quicken's support pages. We weren't able to get to the bottom of the problem but we made a little headway and, I'm hoping, he's got what he needs to get the problem solved. The humbling part of the meeting was Jim's obvious technical knowledge and passion for getting things to work. If I had a nickel for every time I've started and stopped using Quicken or Money, I'd have...well, I don't know what I'd have because I don't use all the tools available to me to manage my money. Quicken is a fairly complicated program but there must be something there that is worth the effort if Jim, who said his only job the rest of the week is getting it to work, is willing to expend so much time and energy using it. Thanks, Jim for the kick in the pants.

Wal-Mart's New Nonbank Bank

2007-06-21T10:39:00.000-04:00

Like the recent PayPal story, this is bad news from a competitor's perspective, but from a consumer's it is great news. Sure, Wal-Mart is in it for the extra revenue, but if this saves low income consumers from having to pay the exorbitant fees check cashing places charge, then Wal-Mart should be commended.

The Bank of PayPal

2007-06-15T16:05:00.000-04:00

It's hard to tell from this article want kind of bank PayPal is really going to turn into, but it likely means more competition for everyone in financial services. Which is good. I see it as one more player to push online banking toward nirvana, the point where I can wander around the world unfettered by wallets, credit cards, cash and still be able to get my kids a waffle cone.

The vibe

2007-06-13T09:37:00.000-04:00

A great local example of the elusive "vibe" that Seth Godin talks about today is the grocery store VG's. VG's employees are so bright, energetic and happy that it's infectious. Their enthusiasm doesn't seem like the put on kind either, the rote "Have a terrific day and thanks for shopping at VG's". Everyone seems to enjoy working there which, having worked at a few grocery stores, is not easily accomplished.

I'm going to suggest talking to their management to see if they have any ideas that might translate into banks.

The Bank Blitz Memo: Industry Jujitsu

2007-06-07T16:12:00.000-04:00

This is a terrific, thorough, commentary on the future of branches and technology.

The branch’s function is similar to a post office. Like a post office, nobody is at the branch because he wants to be. Customers go to branches because that’s where they have to go to get what they need done. And they’re usually far from thrilled about it.

There are certainly many reasons customers/members go to a bank or credit union branch, but the number is dwindling every day. People who are willing to accept the reasons are dwindling every day too. There are people who will not accept "Just come on in and we'll get you set up" in response to a telephone or email inquiry. I'm not sure if this should stop institutions from building branches in the short term, but I think they should give serious thought to minimizing the expense and look for ways to make smaller, more focused, branches. Rather than building a new, stand-alone, branch that tries to emulate a Starbucks, why not just rent some space next to Starbucks and let people kill two birds with one stone on morning coffee stop.

Is Motorola Stuck in the Dip?

2007-05-25T10:57:00.000-04:00

This Business Week article is the best synopsis I've read yet of Seth's new book and, funnily enough, it's written by Seth himself.

I saw Seth earlier this week in Ann Arbor at the Michigan Theatre. He's a good speaker and does a good job of reinforcing points with examples. He's not as magnetic as I thought he would be, I guess I'd built him up a bit in my head, but he is convincing. I liked especially how he handled questions from the audience. The questions were of the "What do I do" type where the questioner seems to be looking for impromptu consulting that will result in instant wealth and glory. Seth didn't act like he knew the answer and instead reiterated points from his book(s) about being remarkable and not settling for average. Unfortunately, if you didn't get a chance to see him, you're too late because The Dip Tour just ended.

Great Story Behind a Great Commercial

2007-04-27T12:07:00.000-04:00

I was listening to Sound Opinions yesterday and they had the record producer, Joe Boyd, on as a guest. Joe Boyd is a legend who produced early Pink Floyd, The Incredible String Band, Fairport Convention, Richard & Linda Thompson, and Nick Drake. He told a story about Nick Drake and the song "Pink Moon" that I thought was very interesting. He said he and Nick's family were approached about using the song for a commercial and his initial reaction and recommendation was to not let it be used. Volkswagen, though, sent him the story board for the ad and he was won over by the fact that there would be no voice over in the ad; the ad would simply contain Nick's music and a couple of sound effects.

I don't think that ad sold many Cabriolets but I think it did add some equity to the Volkswagen brand. Why don't more advertisers go for these more subtle, less jarring ads? Let's face it, 99.99% of ads are tuned out and in a lot of cases they are physically tuned out by someone lowering the volume on the TV or fast fowarding through them. Why not make ads that, at the very least, don't aurally assault people and give a quiet moment before their show starts again?

PS: This may be my favorite commercial of all time.

Shutting Down Interest

2007-04-10T09:39:00.000-04:00

In Seth Godin's post, "Shutting Down Interest", he mentions a politician going from 0 to 60 when someone shows the least bit of interest in them. Here's a mortgage company example of that:

Last week I filled out a form on the Quicken Loans website to try to get some rate and closing cost information on their mortgages. [I'm not ready to apply for a mortgage. I'm just trying to narrow down my options for when I am ready.] Completing the form almost immediately resulted in 4 boilerplate emails and a call. I ignored the call and responded to one of the emails and asked for rate and closing cost info. That resulted in 3 more emails and 2 more calls, none of which answered my question. They all said pretty much the same thing: "Let's get started on that loan." I finally sent an email to the individual at Quicken Loans who was contacting me and said no more emails or calls and reiterated that I was just looking for rates and closing costs. I then got an email telling me no mortgage company in America would give me that information without first getting some information from me. Though not the answer I wanted, I finally got a real answer to my question. If I had gotten that reply to my first email, I wouldn't have crossed Quicken Loans off my list of possibles.

Lifelock! Where have you been all of my life?

2007-04-06T15:10:00.000-04:00

Lifelock, a nifty little service that "locks" down your credit file so no one can touch it without setting off alarms, bells, and whistles, makes me wonder why this isn't just the way things work. Why don't Equifax, Experian, and TransUnion simply do this for everyone without charge? I know these companies don't really exist for consumers, but how much money and sanity could have been spared if 10 years ago the credit bureaus started contacting people to confirm their credit applications. I guess I just answered my own question, there was nothing in it for them except great expense, but everyone's been trying desperately to protect their identity or their customer's identity with everything from low tech (shredders) to high tech (multifactor authentication) and still the fraud goes on. A person's identity is only worth their assets and their credit, and I'm guessing most people's credit is worth more than the assets a fraudster can easily get their hands on, so it makes sense to put a lock on the credit spigot.

Personal FinanceWorks

2007-04-03T16:35:00.000-04:00

I attended Digital Insight's National Conference last week and the big news there was Personal FinanceWorks, the first product that shows the promise of the Intuit/Digital Insight marriage. FinanceWorks is a basic, online version of Quicken and likely represents the future of online banking. I say "likely" because I think there is still a chance for online banking to go in the opposite direction and offer fewer features rather than more. Don't get me wrong, FinanceWorks looks great and a big step forward, but I think consumers would be better served by an open framework that would free their banking data from it's constraints and let it be pushed, pulled and mashed in myriad ways. I certainly like the idea of one of our members using our site to keep track of all of their finances but I don't see Gen Y bending to our will.

Leo Laporte says kids are moving from MySpace to Facebook and beyond

2007-03-20T09:51:00.000-04:00

According to Leo, MySpace is passe' and most kids have moved on to the better looking Facebook. And he thinks they will very quickly move on to the even better looking Virb.

Will CU's follow these elusive, possibly lucrative, youngsters as they wend their way around the net? How desperate will a CU seem when it has an account on all 3 sites?

Save up to 73%! Really?

2007-03-09T16:46:00.000-05:00

Sales like this DVD one at DeepDiscount, though not technically dishonest, bug me. What bugs me is how they can say 73% off of DVDs, which, as far as I can tell, have no definitive price. I know they have a list price, but DVDs are so often used as loss leaders at the big retailers that I don't think anyone really ever pays the list price. Like I said, this bugs me...not a lot. Just enough to bug you with it.

I'm Back!

2007-03-07T15:36:00.000-05:00

[Cue thunderous applause]

I've decided to try this again, see if I can get something out of it.

My goals:

Find something exciting/interesting to blog about

There really isn't any reason to set loftier goals. Anything good that will come out of this has to start there, so that will have to be my focus.

What's your boss's house worth? Zillow can tell you

2006-02-20T15:16:00.000-05:00

This article rightly points out how inaccurate/incomplete the information on this home valuator site, Zillow, is, but this site is still very valuable. It's valuable because it's created a model for how a home valuator should work. The inconsistencies will be worked out and eventually this will be the standard. It's a bit scary for people who hold on to and protect their personal financial information like their life depended on it, but transparency is coming.

This could either be the next big thing, or a failed experiment

2006-02-17T11:14:00.000-05:00

Prosper.com is a new website/company that has gotten a fair amount of press for it's person to person lending model. First off, I think the idea is terrific. Let people looking for a lower rate loan meet people looking for higher rate of return on their savings and reap a small percentage from the exchange. It's a win, win, win, and disintermediation at its finest. Will it work? The idea, definitely. This particular version of the idea? I think so, if things go well from the start. A couple of deadbeats early on could quash the confidence of on the fence lenders. I will be keeping a close eye on this and may even try it if I come across some loose change.

It's been awhile...Part Deux

2006-02-16T12:46:00.000-05:00

I'm going to start this up again. The industry was in the doldrums for awhile; not many new developments or products. It's starting to heat up again, though (prosper.com, zillow.com, etc.), so I'm going to give it another shot.

Stay tuned.

A Real Remedy for Phishers

2005-11-08T15:59:00.000-05:00

Bruce Schneier, the author of this article, makes a good point about how fraud mainly hurts individuals even though FIs bear a great deal of the financial burden. FIs simply accept the loss, take a little from column A, transfer it to column 2 and they are done. A victim of identity fraud is looking at months of work and stress to clear their name.

Now, Every Keystroke Can Betray You

2005-09-19T10:20:00.000-04:00

Good overview of the latest scary problems facing consumers and, by extension, FIs.

Review: Mobile Payment Has Growing Pains

2005-09-16T10:06:00.000-04:00

Just stretching my legs. I have to slowly work my way back into posting.

Reasons for No Posts

2005-07-26T14:25:00.000-04:00

I haven't posted for awhile for a few reasons:

I haven't really seen any "new" news related to Online Banking or Bill Pay; everything lately has seemed like a rehash.

I'm starting to question the value of blogging; there just seems to be so much out there that it's hard to see how I can add anything especially since I don't really have any time to devote to it.

No one reads my posts; this is probably the biggest reason.

Data Worries Stunt E-Commerce, Online Banking

2005-06-24T08:56:00.000-04:00

I can believe that this is happening but Avivah Litan of Gartner's negativity is a little much:

"It looks like the bonanza of e-commerce is going to stop."

Her comments about getting a law passed allowing consumers to limit how their information is shared with third parties is equally pessimistic and I think a little out of the realm of Internet researchers:

"That'll never happen," said Litan. "The financial services companies will argue that opt-out would slow down the business of extending credit to consumers. And they spend millions on campaign contributions. The privacy groups, in comparison, have no money at all.

"It often comes down to who are the largest contributors to political campaigns," she added.

Thanks Avivah for the civics lesson.

Cash, Charge or Fingerprint?

2005-06-09T10:44:00.000-04:00

I like this idea a lot. You don't have to remember to bring anything except your finger. Eventually we may not have to carry any identification or keys at all.

Easy check fraud technique draws scrutiny

2005-06-02T17:02:00.000-04:00

"...consumers should realize that checking account numbers are just as valuable to criminals as credit card numbers and should be treated with similar care."

This I did not know.

If demand drafts are the problem and they were created to accomodate telemarketers, why not make telemarketing illegal? Okay, that's extreme but I think any time you can blame telemarketing, you should.

Bank of America gets personal

2005-06-02T16:47:00.000-04:00

This could become the defacto two factor authentication. 13.2 million online banking users is a large chunk of the whole.

The only thing I don't get about this system is why you have to login from a registered IP address to see the image? Is this to remind users that they need to be wary because they are not at their regular PC? Are the images stored on the individual PCs rather than BoA servers? More research is needed.

Just wave to pay

2005-06-02T16:41:00.000-04:00

This is a terrific idea because it makes the transition to contactless payment easier; the user can use the card just like a regular card in the places where a contactless reader isn't available.

PayPal seeks to expand influence

2005-05-20T15:37:00.000-04:00

I think if PayPal were going to be a bigger player, it would have happened by now. Enough people are familiar with eBay, and by extension PayPal, that it seems they would have found other uses for their PayPal account by now.

Banks try to transfer the blame

2005-05-19T11:58:00.000-04:00

Interesting article about Reg D. I didn't realize how flexible the regulation is and how we don't necessarily have to limit savings accounts to 6 electronic transfers a month. We can make the transfer, notify the member of the regulation, and then, if they go over the limit again, move funds into a share draft account or do something else to make sure the account doesn't become a transactional account.

Phishers Using New Methods To Steal User Information

2005-05-06T09:27:00.000-04:00

As education starts to work, and users are going for the bait less, phishers change tactics and take some of the social engineering out of their scams.

Americans Pay Off Credit Card Debt!

2005-04-22T16:08:00.000-04:00

This is good news except for, as the article points out, credit card companies, but I think it only hurts the credit card companies in the short term (that is if, and this is a big IF, this trend continues). Long term (again, IF the trend continues) this could be good news because it reduces the risk of a big bust in the future.

May I See Your Voice, Please?

2005-04-21T11:02:00.000-04:00

Using voice recognition to activate a new credit card. Good idea? Yeah. Will it actually work? I have my doubts. A person's voice is such a fine instrument I don't know how the technology will account for subtle differences in someone's voice between the time they record their signature and when they activate a card. What if you have a cold when you record your signature but not when you activate the card or vice versa?

Mitigating identity theft

2005-04-14T15:28:00.000-04:00

Bruce Schneier argues in this article that the focus of information crime prevention should be on fraudelent transactions rather than on identity theft. I'm not sure I completely understand the distinction or how it helps solves the problem but I thought I would post it because it sounds contrarian (and because I haven't posted in awhile).

Dialing up to do business

2005-04-05T16:38:00.000-04:00

The subtitle of this article about Korea's 3G loving, Internet connected society says it all: "Paving the way for a cashless society."

Report Finds Banks Sloppy With Your Info

2005-03-29T14:29:00.000-05:00

This is not the kind of news we need now. As we are trying to educate members/customers to be wary of the lurking threats we are getting the reputation for playing fast and loose with sensitive data (thank you Bank of America).

KISS: Keep – It – Secret – Stupid!

2005-03-28T16:38:00.000-05:00

Gonzo Banker seems to have the market cornered on clear and pragmatic thinking. A simplification of their simplification: there is no solution to the security problems we are all facing but we all have to keep plugging away to try to keep ahead of the hackers and to show our members/customers that we are serious about it.

They (the article's author is Tripp Johnson) also make the point that banks/credit unions and their technology partners give too much away in their press releases touting new security. Good point! Hackers may be the only ones reading press releases because they are the only ones who benefit from reading them.

Security no match for theater lovers

2005-03-28T13:54:00.000-05:00

The experiment described here was devious and effective. The sad part is that it will take an economic catastrophe before people are sufficiently skeptical of this type of social engineering.

Putting Phishers In The Banking Frame

2005-03-16T11:05:00.000-05:00

This is another scary example of phishing, a cross site scripting vulnerability attack. This type of attack includes a link to a legitimate page but puts a frame of the bad guys site on top of the page.

Still, users will only see the frame if they click on the link within the email. We need to keep reinforcing with our members/customers that we will not send them emails with requests for information.

Banks 'wasting millions' on two-factor authentication

2005-03-15T14:21:00.000-05:00

This is not good news. Getting rid of passwords in favor of other authentication (tokens, scratch cards, etc.), the latest state of the art security, only nudges the bad guys to use other tricks. I guess I never thought two-factor authentication would eliminate fraud but I thought it would at least be awhile before work arounds would be devised. It hasn't even become mainstream yet.

This note from Credit Union tech-talk is not good news either: "Some security experts believe that the day when two-factor authentication is mandatory for online banking access is drawing near."

If two-factor isn't the real solution but everyone is headed down that road it is only a matter of time before we all have to change direction again. This will be bad from a time and resources perspective and from a credibility one. We need to figure this out before consumers lose confidence and adoption starts to fizzle.

A.T.M.'s Pick Up Web Site Tricks

2005-03-14T15:03:00.000-05:00

One of my favorite jokes while waiting in line behind someone at an ATM (Read: It's really only funny to me.) is: "What is this guy trying to do? Refinance his mortgage." If more ATMs like the ones talked about in this article become available it will no longer be a joke.

E-mail 'phishers' attack MSU Federal Credit Union

2005-03-07T09:05:00.000-05:00

They're getting closer. MSU Federal is less than an hour away from us.

New Industry Helping Banks Fight Back

2005-03-04T09:42:00.000-05:00

Phishing is creating opportunities for companies with the technology to fight it. Corillian, the Internet banking provider, uses the novel approach of monitoring activity and warning banks when a number of different accounts are accessed from the same IP address. Unlike the other measures mentioned in the article this seems the best because it can be done without adding technology, that info is already tracked, and because it is a single source, the others cull info from several sources. Maybe I'm being overly simplistic but I think simple works the best.

A Glimpse Of The Internet Banking Future?

2005-03-02T10:52:00.000-05:00

I doubt the example Jeremy Wagstaff's cites in this post is really a bank backing away from Internet Banking but rather them making a transition from one platform to another. If the bank he's talking about is really trying to protect itself from phishing I don't see how it does. I don't understand how a VPN is protected from social engineering attacks like phishing.

When paying with plastic, why swipe? Just wave

2005-02-25T12:35:00.000-05:00

This is great news for those of us who use their card so much that we wear them out.

Also great news that VISA is going to not require signatures for purchases under $25 dollars. I hope this is instituted even without the contactless cards.

For Some, No Purchase Is Too Small For Plastic

2005-02-23T10:11:00.000-05:00

Great article regarding the shift in consumer attitude regarding using credit cards for small purchases. The stigma and guilt are going away.

Interesting also how increased use hasn't effected fraud:

"...even without signatures, fraud remains at an all-time low of 5 cents for every $100 spent on Visa cards. The company's research shows that low-value purchases tend not to attract fraud. And even if they did, Visa guarantees its payments to merchants."

The next step is figuring out a way to eliminating merchant reluctance. The dirty looks are still there even if consumers are ignoring them.

Online phishing scam hits UCLA's University CU

2005-02-18T09:23:00.000-05:00

Okay it's getting scarier. Now it's getting down to smaller asset CUs too.

Online Banking Growing Rapidly, Survey Finds

2005-02-09T16:33:00.000-05:00

This article from the Washington Post seems a bit dated, I think this Pew info came out a few months ago, but it is still encouraging to see it in print...uh online.

The Password Is Fayleyure

2005-02-04T10:53:00.000-05:00

This TechnologyReview.com article argues that stronger password protection does nothing to enhance security.

"the logical conclusion of most "strong password” policies—don’t use names of family members or pets; don’t use birthdays or calendar dates; use randomized sequences of special characters; don’t use your password for more than one or two sites; change your passwords several times a year; don’t put your password(s) in your PDA or cell phone—is that passwords should be impossible to remember and should never be written down."

Good point, but what is the alternative? The article mentions ATM passwords are still only 4 digits but fails to mention that they require that physical piece of plastic which waters down his argument.

Phisher poses as State Employees' CU

2005-02-01T10:14:00.000-05:00

Here's the first instance I've seen of a phisher targeting a Credit Union. It's starting...

More Identity Theft Offline Than Online-Study

2005-01-27T10:25:00.000-05:00

Whew!!! Now I can relax, sit back and not worry about doing all of my banking online.

Phishers Drop Hooks Into Smaller Streams

2005-01-24T11:23:00.000-05:00

It seems like it is only a matter of time before phishers drop their hooks into Credit Union and local bank streams.

On a related note, Thunderbird, Mozilla's email equivalent of Firefox, has a new phisher safeguard. The feature is supposed to alert users when the click on suspicious link within a suspected phishing email.

CheckFree Cashes In

2005-01-21T14:12:00.000-05:00

The year over year growth numbers for online banking and bill pay have been terrific for years, mainly because they started from such a small base, and now that growth seems be translating into profits, at least for the companies that offer the infrastructure. Will it ever translate into verifiable increased profits for financial institutions? I don't know. It may just protect them from customer defection if they don't offer all of the online services.

Fraud victims facing cold shoulder

2005-01-21T09:47:00.000-05:00

Some British banks are no longer going to offer blanket coverage of losses for customers who are victims of phishing scams. This article goes on to talk about the lax security measures that some British banks are taking to secure their sites. Maybe I'm missing something but I don't see how increased security, stronger password requirements, more authentication necessarily protect consumers and ecommerce sites from phishing. If you can convince someone to give up their user name and password with an email, what would be the problem with getting them to give up other kinds of personal information that could be used to compromise their accounts.

Momentum Is Gaining for Cellphones as Credit Cards

2005-01-10T14:11:00.000-05:00

If it's in the New York Times, it can't be far from the mainstream.

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Financials are phishers’ favorite targets

2005-01-07T09:35:00.000-05:00

This small article is noteworthy for Scott Chasin's (of MX Logic) comment that phishing could have the same effect on ecommerce that spam has had on email. If this is true, and it sounds eerily dead on, ecommerce may have to shift in much the same way Internet communication has shifted from email to IM.

Banks Test ID Device for Online Security

2004-12-27T10:23:00.000-05:00

Good overview of the next generation of online banking safeguards. Something mentioned in the article that I hadn't thought of before is what if they become so commonplace that every FI uses one; you're going to end up with a key chain that looks like Schneider's.

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Debit Cards Give Plastic Edge Over Paper

2004-12-07T09:33:00.000-05:00

The tide is turning. Though the dollar amount of checks is still higher than electronic payments, there are now more electronic transactions than paper ones. Good news? Yeah, if you believe that the electronic movement of money leads to efficiencies that are in the end going to save our economy millions of dollars and consumers lots of headaches. In my humble opinion, it does.

Stolen computers have Wells Fargo customer data

2004-11-03T10:24:00.000-05:00

Wells Fargo has had computers containing customer data stolen 3 different times in the last year? Amazing.

Online Resources To Buy N.J. Firm

2004-10-19T10:17:00.000-04:00

Online Resources buys company that will help them expand their offerings to include credit card transactions.

Open Source Currency

2004-10-18T13:15:00.000-04:00

Not sure I understand everything mentioned in this article but I get the gist: using your cell phone to move money is going to be a big, big thing.

De-Hyping WiMAX

2004-10-04T11:34:00.000-04:00

It turns out WiMAX, at least in its current state, is a little too good to be true.

AOL Moves Beyond Passwords for Log-Ons

2004-09-21T08:58:00.000-04:00

Though AOL no longer has the cache it once did this development is likely a sign of where authentication is going.

My sister-in-law uses one of these devices that displays the system's current password and it is pretty slick. My worry would be losing it and how long it may take to get a new one.

New Wireless Check Verifying Service

2004-09-01T09:33:00.000-04:00

New product from a company called Ju$tchex that can verify a check, using the routing and account numbers, through a secure website or text messaging.

This type of technology takes away another reason why people use checks: the ability to pay for something without the money, or at least money at this exact second.

Thanks to Engadget.

Trade Your Wallet for Wireless

2004-08-31T10:12:00.000-04:00

Wired article which mentions another technology and company to look out for: Near Field Communications.

Here's a related Engadget post.

Is Cash Becoming Extinct?

2004-08-19T10:50:00.000-04:00

Nobody creates small, nutrient rich bites of information like the Motley Fool.

Card purchases outnumbered cash or check for the first time in 2003. Though Selena Maranjian rightly points out that this isn't all good news, I don't think this necessarily means we are headed down a path of profligate spending and credit problems. I think the use of cards also means we can more easily track our purchases and possibly hold to budgets better. I foresee credit cards that let you set up a budget and alerts you, on your receipt or in an email, that you've reached your monthly coffee allotment or ease back on the dinners out. More information is going to be created and should keep getting easier to track.

Sending Money Through Cell Phone Numbers

2004-08-16T15:10:00.000-04:00

It's not clear from article how this works. Does the recipient have to be using the same cell phone company that you are? Does the recipient have to set up an account, like PayPal, to receive the money? Another good idea and one that gets better as more and more people get a cell phone.

"Ubiquitous Banking Interface (UBI)" is the system that this works on. I'm going to file away that name and variations ("Everywhere Banking") for possible future use.

Cyber Fears On Fed's Web Plan

2004-08-16T09:33:00.000-04:00

I understand the concern about the Fed moving to the web but either the web is a [relatively] secure medium or it isn't. If it's good enough to move consumer or business funds, which if lost could be catastrophic for those involved, it should be good enough for the fed and banks.

Phoning home pesos from across the ocean

2004-08-10T09:24:00.000-04:00

Sending money internationally via text message. Still sounds complicated, time consuming, and costly for the sender but it's a start.

The Money Machines

2004-07-23T10:41:00.000-04:00

Fortune Magazine article about the history of ATMs. Need to read (or at least you did until I posted this) all the way to the end to get to the most interesting point:

"The ATM clearly fell short of expectations in one area, though. It never reduced the number of tellers or filled the demand for bank branches—something the machine's pioneers had promised. According to the FDIC's count, there are close to 75,000 branches today, up from under 58,000 in 1985. Tellers number 539,000, vs. the 484,000 in 1985—though many of them now also function as retailers, cross-selling IRAs and mortgages to customers who come in with a big deposit. And that is something human beings still do better than any machine. For now."

ATMs, like phone tellers and online banking and bill pay, don't eliminate jobs or save money, they just give customers a little more of what they want: freedom.

Checking Account Fraud Is Increasing - Automated Payments Give Rise to Scams

2004-07-19T16:38:00.000-04:00

Surprisingly candid opinion from FTC's Director of Consumer Protection:

The FTC's Beales does not believe that tougher rules would deter checking account fraud. "I don't disagree that this is a threat the financial system needs to respond to. But whatever you do, thieves are going to look for ways around it," he said. "The people we're talking about don't pay a whole lot of attention to the rules."

Corillian Fishes for Phishers

2004-07-15T16:30:00.000-04:00

Motley Fool showing some interest in Corillian and their new fraud detection system. They're impressed with the software but not with the investment opportunity. Details on the system are in short supply in the article and in the company's press release. Sounds like with their system you will be able to scan the Internet for suspicious behavior related to your brand.

Banks Start To Realize Identity Theft Is Expensive

2004-07-15T13:58:00.000-04:00

Great post from one of my favorite blogs, techdirt.

Mozilla moves to fix security vulnerability

2004-07-09T15:33:00.000-04:00

Mozilla has been touted as a safe alternative to Internet Explorer. This article shows that no browser is infallible.

First Santa Claus, now the secure browser.

Net Attack Aimed at Banking Data

2004-06-30T10:01:00.000-04:00

Keylogging spyware seems to be a growing threat. Since it can sit unnoticed on a PC, users are unaware they are providing their login and passwords until it is too late.

Internet Explorer is the weak link in this case and making sure it is patched and/or a pop-up blocker is in place should protect most users. In the long term, we may need to encourage users to switch off IE, though that could be a long, tough slog. There are great alternative browsers but they would need to be installed (and, in some cases, purchased) so it is pretty tough to get people to switch from their free, pre-installed IE.

Here are the specifics that are only hinted at in the article: http://isc.sans.org/presentations/banking_malware.pdf

Online Banking Surges, Still Room to Grow

2004-06-17T09:43:00.000-04:00

Nothing really new here but it's always good to see coverage in a national newspaper, in this case the Washington Post.

Gartner: Phishing on the rise in U.S.

2004-06-16T08:41:00.000-04:00

ZDNet article based on same study in previous blog. This one better lays out the problem and, as I suggested, lays most of the responsibility on the user. It does, however, inspire me to consider some incremental changes. Even small changes can have a big impact.

Survey: 2 million bank accounts robbed

2004-06-14T10:03:00.000-04:00

Survey that shows online banking is being targeted more for fraud. Scary stuff. It seems, though, that most of the safeguards fall again outside the realm of the financial institution. We can do a better job of locking down online accounts but there is resistance from consumers who don't want to remember another password (or even a longer one). We can do a better job of educating users about the dangers but people are still being taken in by Nigerian emailers even with the almost steady stream of newspaper stories and consumer warnings. There are some great ideas for securing accounts (many of them detailed in earlier blogs) but nothing yet that is easy to implement and/or easy for users to adopt. Will we find a middle ground? Someday. Will we ever eliminate fraud? No. We just need to keep plugging away.

Fame vs Fortune: Micropayments and Free Content

2004-06-11T12:52:00.000-04:00

Strong argument against micropayments. A part of me is pulling for micropayments, though, because I think some of the proposed systems are elegant, PepperCoin for example.

Firms Flirt with Out-of-Band Authentication

2004-06-09T14:20:00.000-04:00

BTN article with more password ideas and more new terminology, "Out-of-Band". Out-of-Band is basically authenticating one channel using another. Example: Person surfs to Online Banking login page, types in their account number, and they then get a system generated phone call that authenticates them. Crazy idea? Probably, but it's another option.

Website Analysis Isn't a Game

2004-06-09T09:33:00.000-04:00

Wired article about website analytics package that represents web traffic as a city. Great idea.

Updated: I've downloaded and installed the software but need to get with our web design firm to place the tags on all of our pages. Anxious to start using it.

Recognition Keys Access

2004-06-07T10:05:00.000-04:00

Another interesting solution to the password problem. This one seems a bit pie in the sky but it could be used as a starting point.

Picture Passwords

2004-06-02T12:12:00.000-04:00

Picture passwords are an option that I've never considered. This BBC article talks about Microsoft's work on it.

Ran across related article on Brighthand for a product from Softava called PicturePassword that can secure a PDA. To unlock the PDA you have to click on a secret spot on a picture. This is neat because you can use your own pictures.

Prime Time Wireless - It's sexy, but is it safe?

2004-06-02T11:14:00.000-04:00

Dopey article on CUES site regarding wireless networking. No explanation of why a credit union would create a wireless network besides the "sexiness" of it. If there is no reason to create one, there is no reason to be concerned about the safety of it.

Most of the problems of wireless security are out of the financial institution's control. We can't secure the networks, at home, at Borders, at Starbucks, that our members are using to access their accounts.

Simple Passwords No Longer Suffice

2004-06-01T16:00:00.000-04:00

Even though most online banking users don't want to hear it, we may be coming to the point where an account number and the last 4 digits of your SSN is not enough. This AP article offers a couple alternatives.

Mission Statement

2004-06-01T13:03:00.000-04:00

This is my attempt at creating a place where online banking professionals can come together to discuss online banking and the trends contributing to its future.