# 2 Years of SDNY FinCrime Cases Show New Technology Scaling Old Vulnerabilities

> New tech exploits old fraud vulnerabilities in financial systems.
- Title: 2 Years of SDNY FinCrime Cases Show New Technology Scaling…
- Summary: New tech exploits old fraud vulnerabilities in financial systems. Banks must strengthen payment authorization controls as fraud shifts from transactions to…
- Keywords: sdny, fraud, financial crime, payment authorization, check fraud, cryptocurrency, ai fraud, verification systems, business, finance, Years, FinCrime
- Source: Pymnts — https://pymnts.com/cybersecurity/fraud-prevention/2026/2-years-of-sdny-fincrime-cases-show-new-technology-scaling-old-vulnerabilities
- Author: PYMNTS
- Published: 2026-10-09T20:51:52+00:00
- Read time: 1 min
- Topics: sdny, fraud, financial crime, payment authorization, check fraud, cryptocurrency, ai fraud, verification systems, business, finance
## 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.
## Key takeaway

Banks must strengthen payment authorization controls as fraud shifts from transactions to upstream systems.