In a case that could have implications for direct deposit and payroll services providers, a payroll processing firm ceased operations, vanishing into the ether with $35 million earmarked to pay client employees and their tax withholdings. Now the FBI and regulators in New York, where the payroll company was based, are investigating the matter. “I am calling on the [New York Department of Financial Services] to investigate the sudden and disturbing shutdown of MyPayrollHR in Clifton Park,” Governor Andrew Cuomo stated in a recent tweet. “The company’s reckless actions have left employees across the state with negative bank accounts. They deserve answers.”

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As ecommerce merchants struggle to meet the European Union’s revised Payment Services Directive (PSD2), TSYS launched an advanced technology platform designed to validate customers and combat application, transaction and account takeover fraud. The TSYS Authentication Platform went live Sept. 12, 2019, two days before PSD2’s new provisions, including its Strong Customer Authentication (SCA) mandate, became effective. The solution will be launched in North America in 2020, TSYS representatives stated. Justin Griggs, senior vice president of product strategy and commercialization for TSYS Issuer Solutions, said remote transactions involving fake identities and account takeovers are a growing concern for merchants, issuers and regulators.

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Strict new customer authentication rules are set to take effect in Europe, but not everybody is ready, leading the European Banking Authority to allow additional time for banks, financial technology firms and merchants to start towing the line. The new security rules aim to thwart online payment fraud, which has been skyrocketing now that the EMV security protocol is the norm for card-present transactions worldwide. According to Mastercard, the fraud rate for digital payments in Europe is now 10 times greater than it is for card-present transactions.

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The Culture of Innovation index, published Sept. 10, 2019 by ACI Worldwide and Ovum, maps approaches to innovation by different business sectors, including fintechs, merchants, corporates and financial institutions. Fintechs and retail banks that leverage real-time payments and transformative technologies scored highest in the study, researchers found. “We wanted to understand what drives our audience of fintechs, merchants and corporates on the innovation front and what inputs and outputs put them ahead of the curve, from organic alignment of embracing technology to digitally-led businesses that foster innovation,” said Michael Grillo, vice president, merchant segment and solution marketing at ACI Worldwide.

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Payments veteran Marc Beauchamp, author of How to Survive and Thrive in the Merchant Services Industry and creator of Bankcard Bootcamp, recently launched Bankcard Life. Devised to offering industry-leading training and resources, the new website and online community also provides a platform for like-minded individuals to share experiences, challenges and best practices, Beauchamp stated. “This business is not easy,” he said. “It takes perseverance, commitment and hard work to build something of significance. I am sharing what I’ve learned over the last 25 years to help members avoid some of the mistakes I made along the way.”

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An unprotected directory containing approximately 419 million Facebook user IDs and phone numbers has roiled the security community. TechCrunch reporter Zach Whittaker broke the news Sept. 4, 2019, in a post titled, “A huge database of Facebook users found online.” Whittaker and other security analysts criticize Facebook for unwittingly exposing user credentials to hackers. “The exposed server contained more than 419 million records over several databases on users across geographies, including 133 million records on U.S.-based Facebook users, 18 million records of users in the U.K., and another with more than 50 million records on users in Vietnam,” Whittaker wrote. “But because the server wasn’t protected with a password, anyone could find and access the database.”

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The thirteenth annual Mobile Payments Conference, held Aug. 26 to 28, 2019 at Chicago’s Swissotel, showcased mobile technologies’ evolution and growth. Industry leaders and subject-matter experts discussed security, technology, communications and the global app marketplace. The event provided a diversity of presentations, resources and networking opportunities. “This year, the Mobile Payments Conference sharply focused on the future and brought a range of experts to speak on very timely topics for both strategists and payments veterans,” said Katherine McClure, partner, business development at PPRO. “Of particular interest to me were the themes of customer experience and international payments. Both of these topics are very important to the industry and to me in my role at PPRO.”

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