Links in “Virtual Currency”

A report just released by HP Fortify indicates the answer is “yes.” The company reported that 100% of the smartwatches it tested contained significant network and communication vulnerabilities including poor authentication, lack of encryption, and privacy issues. [7/27/15]

Two Florida men have been arrested for running a sham company and controlling a small, low-income New Jersey credit union in order to operate an unlicensed Bitcoin exchange. According to New York federal prosecutors, the scheme was designed to launder money for criminals. [7/23/15]

Samsung Pay has been debuted in Korea with trials of it's mobile payment service in preparation for a full rollout. The mobile payment technology utilizes near field communication and card readers with magnetic secure transmission technologies, meaning it's already fully compatible with most POS terminals. [7/20/15]

Several community institutions have led the way in developing apps for new smart watches. As the apps can be almost identical to regular smart phone apps, it may be well worth your while to invest in new app development to keep up with the smart watch trend. [4/21/15]

A police department in Massachusetts was taken over by ransomware. Its backup was also corrupted, and its latest uncorrupted backup was 18 months old. So what did they do? They paid the ransom: $500 in bitcoin. "It was an eye-opening experience." [4/15/15]

Alternate payment system options are expanding rapidly. You need to consider how systems like Bitcoin and MCX/CurrentC may affect your debit card products. [2/4/15]

Beginning Jan. 1, digital currencies, such as Bitcoin, became valid in California, where only US dollars were valid before. The new bill doesn't oblige vendors to accept alternative currencies, but allows them to. [1/5/15]

While Bitcoin has had its struggles, one area that it has locked down is security as a payment mechanism. "It is easier to steal the Mona Lisa than to steal a Bitcoin." [11/24/14]

Are you prepared for how virtual currencies may impact your BSA monitoring requirements?  FinCEN has issued two administrative rulings that deal with virtual currencies. The first addresses virtual currency payment systems and the second addresses the application of regulations to a virtual currency trading platform. [10/28/14]

Although neither the FDIC or NCUA back virtual currencies like Bitcoin, the CFPB is adding them to the complaint database. They warn consumers about the risks of virtual currency, but worry that "the hype surrounding virtual currencies...[is] in an effort to lure consumers to spend money, which is then stolen." [8/12/14]