2 Years of SDNY FinCrime Cases Show New Technology Scaling Old Vulnerabilities
New tech exploits old fraud vulnerabilities in financial systems.
In brief
New tech exploits old fraud vulnerabilities in financial systems. Banks must strengthen payment authorization controls as fraud shifts from transactions to upstream systems. Originally reported by Pymnts.
Fraud shifts upstream
Fraud is moving from transactions to systems authorizing payments.
2024 check fraud case
A New York City employee pleaded guilty to 40 stolen checks totaling $600,000.
2026 check fraud case
Michael Edwards received an eight-year prison sentence for 2,600 stolen checks and $55 million in losses.
Cryptocurrency fraud case
Jonathan Spalletta was convicted for attacks on cryptocurrency exchange Uranium Finance.
AI fraud tactics
AI reduces effort to produce convincing content for fraudulent payments.
Upstream vulnerability
Fraud originates from compromised systems, not just transactions.
Banks must strengthen controls
Banks need to secure payment authorization systems, not just detect fraud after the fact.
What matters most
Banks must strengthen payment authorization controls as fraud shifts from transactions to upstream systems.
