SDBA eNews

July 11, 2024

ABA: Supreme Court Ruling to Have Major Regulatory Impact on Banks

Last month, the US Supreme Court reversed a 40-year-old decision that granted federal agencies broad regulatory power, limiting their authority to issue regulations unless Congress has explicitly authorized them. This ruling, stemming from a pair of related cases, is a significant victory for the business community, which has long sought to reign in federal regulators abuse of their statutory authority. Critics of the Chevron doctrine argue that it grants unelected federal bureaucrats excessive power in crafting regulations impacting major areas of American life, including the workplace, environment, and healthcare.

"Chevron is overruled. Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority, as the [Administrative Procedure Act] requires," Roberts wrote for the court. He described the earlier decision as a "judicial invention that required judges to disregard their statutory duties." Previously, the framework required courts to defer to an agency's reasonable interpretation of laws passed by Congress. Calls for overturning this doctrine came not only from conservative legal scholars but also from some justices who argued that courts were abdicating their responsibility to interpret the law.
This ruling will likely have a significant impact on the dozens of pending legal challenges filed by the banking industry. We have long argued federal banking regulators are abusing their statutory authority and this ruling will allow judges to better reign in rouge regulators.

Tech Crunch: AI Powered Scams and What You Can Do About Them

June 30, 2024

AI is here to help, whether you’re drafting an email, making some concept art, or running a scam on vulnerable folks by making them think you’re a friend or relative in distress. AI is so versatile! But since some people would rather not be scammed, let’s talk a little about what to watch out for.

The last few years have seen a huge uptick not just in the quality of generated media, from text to audio to images and video, but also in how cheaply and easily that media can be created. The same type of tool that helps a concept artist cook up some fantasy monsters or spaceships, or lets a non-native speaker improve their business English, can be put to malicious use as well. Don’t expect the Terminator to knock on your door and sell you on a Ponzi scheme — these are the same old scams we’ve been facing for years, but with a generative AI twist that makes them easier, cheaper, or more convincing.

Read full article.

CISA NEWS: 10 Billion Passwords Leaked in the Largest Compilation of All Time

The largest password compilation with nearly ten billion unique passwords was leaked on a popular hacking forum. The Cybernews research team believes the leak poses severe dangers to users prone to reusing passwords.

July 4, 2024


The king is dead. Long live the king. Cybernews researchers discovered what appears to be the largest password compilation with a staggering 9,948,575,739 unique plaintext passwords. The file with the data, titled rockyou2024.txt, was posted on July 4th by forum user ObamaCare.

While the user registered in late May 2024, they have previously shared an employee database from the law firm Simmons & Simmons, a lead from an online casino AskGamblers, and student applications for Rowan College at Burlington County.

The team cross-referenced the passwords included in the RockYou2024 leak with data from Cybernews’ Leaked Password Checker, which revealed that these passwords came from a mix of old and new data breaches.

“In its essence, the RockYou2024 leak is a compilation of real-world passwords used by individuals all over the world. Revealing that many passwords for threat actors substantially heightens the risk of credential stuffing attacks,” researchers said.

Credential stuffing attacks can be severely damaging for users and businesses. For example, a recent wave of attacks targeting Santander, Ticketmaster, Advance Auto Parts, QuoteWizard, and others was a direct result of credential stuffing attacks against the victims’ cloud service provider, Snowflake.

“Threat actors could exploit the RockYou2024 password compilation to conduct brute-force attacks and gain unauthorized access to various online accounts used by individuals who employ passwords included in the dataset,” the team explained.

Read full article.

ABA Banking Journal: Federal Court Issues Partial Injunction Against Labor Department Overtime Rule

June 30, 2024

ABA banking journal

A federal court in Texas on Friday issued a preliminary injunction partially blocking the Department of Labor’s overtime final rule. The state of Texas had filed a lawsuit challenging the rule, and the court blocked enforcement of the rule against Texas (as an employer) only. A group of nonfinancial employer-side trade associations had filed a separate lawsuit. The court did not rule on that lawsuit, which had not sought a preliminary injunction to enjoin the July 1 salary increase. Consequently, unless there is further judicial action, the rule takes effect today with respect to all private employers, including banks.

‌The rule increases the salary level below which an employee is automatically subject to the Fair Labor Standards Act’s overtime and minimum wage requirements. As of July 1, the existing $35,568 salary level increased to $43,888. Therefore, if a bank has exempt employees who make between $35,568 and $43,888, the bank will need to reclassify the employee as nonexempt—​and therefore subject to federal overtime and minimum wage requirements—​or increase the employee’s salary to $43,888.

‌Previously, ABA joined other trade associations in urging the DOL to extend the July 1 implementation date to at least Sept. 1. They also urged the DOL to stay implementation of the rule to allow for judicial review. The agency has not responded to the requests.

Read the final rule.  Read the court’s order.

SDBA slim

2025 South Dakota Bank Directory

SD Bank DirectoryReview and return before August 9

Our SD Bank Directory, published by NFR Communications, is already in the works for 2025. Forms were mailed by NFR this week for all members to review and return, no later than August 9. This will ensure that we have the most current information in our 2025 Bank Directory.

SDBA Events

Ag Credit Conference | July 17-18 | Pierre

Ag ConfThe 2024 SDBA Agricultural Credit Conference brings together key stakeholders in the financial and agricultural sectors to address pertinent issues surrounding agricultural financing and credit access. This conference serves as a platform to explore emerging trends, address common challenges, and identify opportunities for collaboration and partnership to support the long-term success and resilience of the agricultural sector. Through expert presentations, insightful discussions, panel discussions and a robust exhibit hall, attendees will gain valuable insights into navigating the challenges of agricultural lending, mitigating risks, and maximizing opportunities for growth in this vital sector of the economy.

Details and Registration

Introduction to HSAs Webinar | August 1 | Zoom

hsaHealth Savings Accounts (HSAs) are a popular health care option for employers offering coverage to employees and individuals/families not covered by employer-sponsored health care benefits. Financial institutions are beginning to see more complex transactions due to increased customer activity. This activity requires personnel to review their existing HSA procedures to ensure transactions are handled properly. This program also provides a solid foundation of operational and compliance issues associated with providing HSAs to customers, including opening, maintaining and distributing procedures.  

Details and Registration

Fraud Academy | August 6-8 | Virtual

FraudThe Fraud Academy is a “first of its kind” two-day school that will train employees at all levels of your institution on fraud risk and what they can do fight it. This program will feature speakers from the United States Secret Service, attorneys from the United States for the Eastern District of Kentucky, Lexington Police Department, and other current and former law enforcement experts that will share their experiences and insights to best educate your bankers on how to mitigate fraud risk and ultimately reduce your fraud loss.  

Details and Registration

Digital Innovations Conference | August 27 | Sioux Falls

DITechnology and innovation have been transforming financial services since long before artificial intelligence and iPhones, and your role as an IT professional is ever-changing, especially in today’s environment. The SDBA Digital Innovation’s Conference is designed to provide support as you keep on top of technology trends, navigate the business of banking, and build and sustain your bank’s technology strategy—all to improve access and better serve your customers. This conference will provide you with an opportunity to learn from industry experts, network with IT colleagues, and visit exhibitors to see and experience the latest in products and services. 

Details and Registration

Bank Trainers' Conference & Expo | October 9-11 | St. Louis, MO

bank trainersBank Trainers Conference is OnCourse Learning’s three-day conference dedicated to the latest trends and tactics in training, learning and development (L&D), professional growth, and more. With inspiring keynotes, educational breakouts, hands-on workshops, and unique networking and entertainment experiences, it’s a can’t-miss event
for anyone in the industry looking to connect, collaborate, and elevate.

Details and Registration

2024 Lead Strong: Women in Banking Conference

September 25-26 | Sioux Falls


Lead Strong: Women in Banking is an annual gathering that celebrates and empowers women in the financial industry. Join us for an engaging and enlightening event that focuses on the achievements, challenges, and opportunities for women in the world of banking. This conference provides a unique platform for networking, knowledge sharing and fostering meaningful connections among leading professionals in the field.

Details and Registration

   Compliance Alliance logo

Question of the Week

Q: Under the Department of Labor’s new Retirement Security Rule, how has the definition of “fiduciary” changed? 

A: Under the new final rule, a person is an investment advice fiduciary if they provide a recommendation in one of the following contexts:

The person either directly or indirectly (e.g., through or together with any affiliate) makes professional investment recommendations to investors on a regular basis as part of their business and the recommendation is made under circumstances that would indicate to a reasonable investor in like circumstances that the recommendation:

is based on review of the retirement investor’s particular needs or individual circumstances, reflects the application of professional or expert judgment to the retirement investor’s particular needs or individual circumstances, and may be relied upon by the retirement investor as intended to advance the retirement investor’s best interest; or

The person represents or acknowledges that they are acting as a fiduciary under Title I of ERISA, Title II of ERISA, or both with respect to the recommendation.

This is considered to be a departure, and a likely non-insignificant expansion, of the scope of what type of employees may be deemed fiduciaries.

Learn how to put compliance management solutions from Compliance Alliance to work for your bank, by contacting (888) 353-3933 or [email protected] and ask for our Membership Team.

For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.


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