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News
SDBA EventsOnline EducationCompliance AllianceABA: ABA, state bankers associations seek to close loopholes in stablecoin lawAugust 13, 2025
The American Bankers Association and 52 state bankers associations yesterday urged lawmakers to use upcoming market structure legislation to close several legal loopholes created by the recently enacted GENIUS Act. The GENIUS Act, which created a regulatory framework for payment stablecoin issuers, was signed into law in July. In a joint letter to Senate committee leaders, the associations recommended three fixes that could be incorporated in a market structure bill. “The decisions made in this space will shape the future of our financial system — its structure, efficiency and fairness — for decades to come,” they said. The recommendations are:
“By closing regulatory gaps, preserving the dual banking system and upholding the longstanding separation between banking and commerce, Congress can foster responsible innovation while protecting consumers, preserving access to credit and promoting economic stability,” the associations said. National associations seek Section 16(d) repealIn related news, ABA today joined the Conference of State Bank Supervisors and five other national associations in requesting that lawmakers use the market structure bill to repeal Section 16(d). “Uninsured depository institutions present distinct risks, and individual states have a strong interest in safeguarding their residents from the heightened risk of financial harm if such institutions fail or if they harm consumers,” the associations said. “Consequently, some state legislatures have chosen to limit or even prohibit the operation of uninsured depositories in their state.” The associations added that while the GENIUS Act preserves state consumer protection laws, “it does not clearly subject state-chartered uninsured depository institutions to host state laws or establish host state regulators’ power to enforce them.” “Ignoring state law in this regard invites regulatory arbitrage, allowing certain uninsured depository institutions special privileges to operate across state lines as federally insured banks currently do, but without the panoply of regulatory and supervisory requirements, or limitations on preemption applicable to those institutions,” they said. Back to TopABA: Chair’s View: Taking the fraud fight to the trenchesThe banking industry has played a leading role in the fight against fraud, but a whole-of-government approach is needed.August 13, 2025 | John C. Asbury
That’s a sobering statistic. Even more sobering is the fact that fraud has become an exceptionally lucrative enterprise — today, there are whole markets devoted to buying and selling consumer data and the tools needed to do things like clone bank websites or push out mass text messages to a group of bank customers that create a false sense of urgency. The simple fact is, fraudsters are becoming more brazen by the day. In fact, one of the more audacious examples we’ve seen at Atlantic Union Bank happened not long ago, when someone came into one of our branches posing as Maria Tedesco, our president and chief operating officer, with a fake ID and everything! Fortunately, the branch staff followed their training and figured out pretty quickly that something wasn’t right: This person came in late in the day, in a hurry, trying to cash a check — classic signs of a scam artist. While this incident was stopped thanks to the vigilance of our team members, scenarios like this are way too common. Whether criminals are coming into branches in person, sending out phishing emails or employing other tactics, fraud has become a billion-dollar problem, with the Federal Trade Commission estimating fraud losses upwards of $12.5 billion in 2024 alone. The banking industry has played a leading role in the fight against fraud, but the scope and scale of this challenge is far too large for one bank — or even one industry — to tackle alone. That’s why ABA has been vocal in recent months about calling for a whole-of-government approach to solving this pervasive problem. America’s banks, in turn, are investing millions to develop advanced fraud detection capabilities to protect their customers, employing things like 24/7 fraud monitoring, fraud alerts and AI technology. We also continue to invest in things like data encryption and biometrics, multifactor authentication and consumer outreach — like ABA’s award-winning #BanksNeverAskThat and #PracticeSafeChecks campaigns — to prevent fraud from happening. That’s why ABA has been vocal in recent months about calling for a whole-of-government approach to solving this pervasive problem. We’ve asked the White House to establish a national office to develop and coordinate a national scam and fraud prevention strategy, and pushed for new commitments by law enforcement to prosecute bad actors. We’ve also urged the Trump administration and Congress to direct the Federal Communications Commission to establish a database of reported spam text messages, to help address the significant volume of fraud being perpetrated through consumers’ phones. And we’ve underscored the fact that telecom companies and large tech providers need to be active participants in the fraud fight as well. These actions — along with increased engagement with state and local law enforcement by all stakeholders involved — can help us make meaningful progress in the fight against fraud. I know that bankers like you are ready to do your part — and ABA is here to support you with resources like our ABA Fraud Contact Directory, which we recently opened up to credit union participants at the urging of ABA members. Keeping our customers safe is our highest priority — and it will take all of us working together to win the fight against fraud. Back to topABA: FTC warns consumers about social media check fraud scamAugust 12, 2025
The Federal Trade Commission is warning consumers that social media posts sharing an alleged checking account “hack” is actually a scam that could lead to financial and legal trouble. According to an FTC consumer alert, the social media scam involves telling consumers to write a check for more money than they have, depositing it into a different account than their own, and then withdrawing the money before the bad check is fully processed. “What the video or post might not tell you is that could leave you on the hook for paying back all the money, kicked out of your bank, and in serious legal trouble for bank fraud,” according to the alert. The FTC advises consumers to research scams and fraud online to see what other people are saying about the social media post. It also encourages consumers to first consider the trustworthiness of the source and to compare advice from a variety of well-known sources. In related news, the American Bankers Association offers bankers resources to help fight check fraud and has launched the #PracticeSafeChecks campaign to educate consumers about the problem. Back to TopCISA News: Nearly one-third of ransomware victims are hit multiple times, even after paying hackersAugust 2025 | Emma Woollacott
According to Barracuda Networks' Ransomware Insights Report, 57% of organizations fell victim to a successful ransomware attack in the last 12 months, with 31% of victims affected more than once. A ransom was paid in 32% of cases, rising to 37% among organizations affected twice or more. More than two-in-ten said they'd experienced pressure to make payments through threats to partners, shareholders, and customers, and 16% reported threats to employees. However, 41% of those who paid a ransom failed to recover all their data, the study noted. Decryption tools provided by the attackers don't always work, or only a partial key may be provided. Meanwhile, files can be damaged during the encryption and decryption processes - or, sometimes, the ransom is paid but decryption tools aren't supplied. Many ransomware victims lack basic security, with only 47% using an email security solution, for example, compared with 59% of non-victims. More than seven-in-ten organizations that suffered an email breach were also hit with ransomware. “The findings make it clear that ransomware is an escalating threat, and fragmented security defenses leave organizations immensely vulnerable,” said Neal Bradbury, chief product officer at Barracuda. “Too many victims are juggling an unmanageable number of disconnected tools, often introduced with the best intentions to strengthen protection. Tools that can’t work together, or which are not configured correctly, create security gaps and lead to breaches." Just under a quarter of the ransomware incidents reported involved data encryption, while 27% saw the attackers stealing and publishing data. Hackers infected devices with other malicious payloads in 29% of cases, and installed backdoors for persistence in 21%. Ransomware attacks are getting worse The impact of a successful ransomware attack is also growing. Around four-in-ten victims said they'd suffered from reputational harm, with a quarter reporting tangible business impact and a similar number saying they'd lost new business opportunities. Similarly, around a quarter of the ransomware incidents reported involved the encryption of data, locking endpoints and data theft. Attacks also featured lateral movement across the network, the infection of multiple endpoints, the installation of additional malicious payloads, privilege elevation, and embedding backdoors and other persistence mechanisms. To make it harder for victims to restore their data without paying, around one in five attackers accessed and wiped backups and deleted shadow copies of files. “In many cases attackers can move through victims’ networks, gaining access to devices, data and more without being detected and blocked," said Bradbury. Back to TopABA: Bank acquisitions announced in Missouri, South DakotaAugust 5, 2025
Peoples Savings Bank in Rhineland, Missouri, has applied to buy farmbank in Green City, Missouri. The $678.8 million-asset Peoples has submitted its application with the FDIC to acquire the $78.1 million-asset farmbank. A June press release announcing the deal did not disclose the price Peoples will pay. The transaction is expected to close in December. First Missouri Bancshares in Brookfield bought Clay County Savings Bank in Liberty, Missouri. First Missouri, the parent of the $471.3 million-asset Verimore Bank, did not disclose how much it paid for the $137.3 million-asset Clay County Savings. Campbell County Bank in Herreid, South Dakota, has applied to buy Farmers State Bank in Hosmer, South Dakota. The $215.3 million-asset Campbell County applied with the FDIC on July 23 to buy the $21.7 million Farmers State Bank. The price wasn’t disclosed. Back to Top |
More than one in three U.S. adults have been victimized by fraud since January 2024.
More than three-in-ten 
Joseph B.Hileman: Co-Founder - Executive Vice President | Hileman served as the Assistant Team Commander of the Monadnock Regional Special Response (SWAT) Team and for 21+ years as a Detective with the Jaffrey (NH) Police Department. Prior to his career in Law Enforcement, he served as Security Supervisor at the corporate management level of a Fortune 500 company. Mr. Hileman holds two A.A. degrees in Criminal Justice – Law Enforcement and Criminal Justice Corrections, Probation, and Parole. 
