Article: Decentralized ID Adds New Firepower To Fight Against Digital-First Fraud

Decentralized Internet, Web 3.0

Decentralized ID Adds New Firepower To Fight Against Digital-First Fraud

More robust protocols give consumers better control over their identities. Law told PYMNTS that all too often, individuals lose control of their online identities as they’ve become victimized in phishing attacks or account takeovers, a problem that has hit financial services providers especially hard.

“With the advent of FIDO and WebAuthn, you make the authentication simple,” said Law. “Instead of using an [one-time password (OTP)] text message, you use a fingerprint or your face.”

Moving away from the password and toward the single sign-on — with its federated approach across different web properties — still needs identity attestation (part of the Microsoft announcement), which in turn will require firms to consider their know your customer (KYC) processes.

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Article: Deep Dive: How Crypto Exchanges Can Balance Platform Security With Customer Experience

Crypto, Cyber-Security

Deep Dive: How Crypto Exchanges Can Balance Platform Security With Customer Experience

Cryptocurrency exchange security is being hotly debated as digital assets draw more attention from consumers, investors, regulators and fraudsters. The values of cryptocurrencies are famously volatile and users can trade certain tokens anonymously or while using pseudonyms. These combined factors can attract both privacy-focused investors eager to gamble on favorable cryptocurrency market trends and also lure fraudsters who hope to hide their identities while conducting financial crimes. The current cryptocurrency frenzy is further creating a lucrative environment in which cybercriminals can carry out their schemes.

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Article: China Suggests Worldwide CBDC Rules

Crypto

China Suggests Worldwide CBDC RulesChina Suggests Worldwide CBDC Rules

The rules deal with issues such as CBDC use, monitoring and information sharing, according to Reuters. People’s Bank of China (PBOC) Director General of the Digital Currency Institute Mu Changchun presented the new rules at a recent Bank for International Settlements (BIS) seminar.

He said there should be interoperability between CBDC systems of different jurisdictions and exchange. He also said information flow should be “synchronized” in order to allow regulators the ability to monitor the transactions for compliance, Reuters reported.

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Article: Beyond Crypto: Getting Back To The Basics Of Blockchain

Blockchain, Crypto

BlockchainBeyond Crypto: Getting Back To The Basics Of Blockchain

Despite the hoopla surrounding blockchain-based investments, the goal of the technology is quite simple: to provide a secure record of transactions. Blockchains are basically super-secure ledgers that store encrypted sets of letters and numbers known as hashes in a chain of other transactions. The transactions are validated by all other computers involved with the chain, are time-stamped, and are virtually incorruptible due to the fact that the hashes from one block are contained in the previous block, which is linked to the block before it, and so on.

Those characteristics certainly make blockchain ideal for financial transactions, and banks could employ the system to bring greater speed, security and transparency to their operations. But banks have been slow to take up blockchain — instead, the technology is emerging in other, somewhat surprising industries.

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