Čvn 07

Industry Report: Is Security in the Finance Sector Too Weak?

Source: bitcoin

Bitcoin Industry Report

A Deutsche double-debit; Poloniex strikes “out” for a short while; and ransomware isn’t as profitable as people think. Are these technical glitches and criminal hackers seriously threatening security in the finance sector? Take a gander at the stories below.

Also read: Industry Report: PayPal Gets Into the Bitcoin Game

DEUTSCHE BANK: DO GLITCHES LEAD TO INSECURITY IN THE FINANCE SECTOR?

Several thousand customers at a Deutsche Bank have become the victims of a double-debit. In other words, they were charged twice! The first charge occurred June 1, and the other on June 2, resulting in double rents, double utility bills, just about double everything!

Naturally, a lot of people are unhappy, and analysts are proclaiming that there’s nothing normal about the situation. While mistakes have occurred in the banking sector before, blunders of this nature are relatively rare.

Several customers recently found themselves in the negative as a result of the debiting, and are unable to withdraw funds from ATMs. Mobile and online apps have also been affected.

A Deutsche Bank representative explained:

“We have noticed several customers are affected by this double charge. Customers can rest assured these balances are not effectively debited from their account, but only represent a visual bug in the software. We are investigating the cause of this issue, which has affected the majority of our clients in Germany.”

POLONIEX

 

Account holders with Poloniex were dealt a scary blow when the exchange platform experienced an outage that left a lot of people in the dark and unable to gain access to their accounts.

While Poloniex had issued a statement ensuring that everyone’s funds were safe and sound, several digital currency traders were feeling the frustration, to say the least.

Poloniex stated on Twitter:

“There is a widespread datacenter outage affecting connectivity of several servers. Coins are safe.”

The exchange later issued a new statement via social media, explaining:

“All functionality has been restored.”

Users can now gain access to their accounts once again and get back to their “trading ways,” but after experiences with Mt. Gox, Cryptsy and MintPal, it’s not unusual to see a little fear from customers.

Poloniex has since calmed that fear, and all operations are back to normal.

RANSOMWARE

Is ransomware that effective? Not really, according to a new study by Flashpoint.

After studying Russian ransomware operations for five months, it is estimated that the highest ranking officials in the ransomware world are making just under six-figures each. Not much considering ransomware’s notorious reputation.

Several return funds are often used to organize campaigns in the first place or hire partners. Apparently, criminals don’t like to work alone, and the costs of hiring an entire team can be quite staggering. In fact, affiliates only take about 40 percent of the proceeds, more often than not.

Furthermore, in recent years, ransomware have become more willing to accept bits of data loss rather than fork out their hard-earned dough, cutting down on hackers’ revenue even more.

The monitored operations only took home about 30 payments of $300 USD. At the end of the day, despite all that hard work and effort, not a lot of money wound up in initiators’ hands.

Know any stories that should be included in our industry report segments? Post your thoughts and comments below!


Images courtesy of seekingalpha.com, Poloniex, Wired.

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Industry Report: Is Security in the Finance Sector Too Weak?

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Úno 22

Wall Street and Silicon Valley: A Match Made in the Blockchain

Source: bitcoin

Wall Street

A new report from Deutsche Bank points to financial technology (FinTech) organizations as being crucial towards advancing initiatives to integrate blockchain technology into Wall Street. Aptly titled ‘FinTech 2.0: Creating new opportunities through strategic alliance’, the report details the untapped potential which collaborative efforts between the largely geographically separated partners could bring, particularly to business-to-business (B2B) payments.

Also read: Lisk Announces ICO With ShapeShift, Dapps Made Easy

Blockchain Technology Needs Collaboration Between Silicon Valley and Wall Street

Wall Street

By bridging New York’s financial and regulatory horsepower with FinTech groups, many of whom are startups, Deutsche Bank is echoing an increasingly loud sentiment which is arguably necessary for large banking institutions to benefit from the blockchain’s potential. As the report itself states:

“For banks, the fintech culture and role as disruptor can be used as an advantage, with fintechs’ position outside of bank walls providing the necessary gateway to innovation. Partnership projects can exploit a “sandbox” approach to experimentation – with the freedom to test new ideas away from banks’ infrastructural and cultural constraints – and can sidestep internal obstacles to innovation, such as over-familiarity with antiquated payment methods, or the parameters imposed by investment or regulatory pressures.”

Transitions in digital infrastructure are paving a new path for banks as they look out on the 21st century. Given the unique and powerful ability for Bitcoin’s underlying technology to lower operating costs and latency times around financial settlements, there is a strong business case to advance these initiatives forward.

Many consumer-focused applications have launched, yet advancement on the B2B and infrastructural side is still slower than had been wished. The hope, however, is to advance blockchain development actively through leveraging the unique perspective and technical talent present at FinTech organizations with the scale, muscle, and network of banks. Stating the importance of creating a symbiotic relationship, especially from the angle of FinTech here, the whitepaper states:

“Two of the greatest difficulties fintechs face – particularly in the B2B market – are access to a sufficient client base (of corporates and their treasurers) and the ability to successfully scale-up a functioning solution for mass usage. While nimble and innovative, these corporates often lack the necessary global reach, processing infrastructure, financing capabilities and client-knowledge and experience to translate an in-demand market solution into a viable vehicle for long-term growth.”

In the past 5-10 years, there has been a surge of innovation around payments technology. Large banks are traditionally tied to data security and data privacy laws that force them to proceed with caution when innovating. FinTech startups, on the other hand, can experiment in a more unbounded manner. Recent applications such as Venmo demonstrate FinTech’s power to launch and captivate. Deutsche Bank is sensing the unnecessary divide between Banks and FinTech, and is suggesting that by partnering together new products can be launched more quickly and profit margins will increase for all parties involved.

B2B back-end blockchain solutions, it is hoped, will propel Banks towards an even larger scale and enable them to offer a more diverse and creative product line. For example, there are lots of potential applications of blockchain technology that Banks could pursue, such as partnerships and integrations with suppliers, inventory tracking, payroll assessment, and supply chain payments tracking.

Currently, Banks are hurt by backend, global financial architecture that remains outdated, disjointed, and inefficient and requires costly overhead, all while restricting B2B payment options. Systems such as SWIFT and GPS work and are reliable, yet in a world with quickly evolving communication channels they fall short. Stating the importance for Banks to fully realize B2B pathways, the report states:

“The B2B sector holds even greater potential than the retail advances so far, with online sales estimates for B2B revenues in 2020 double those of B2C. Innovation in this sector will be driven largely by CFOs and treasurers, who, accustomed to the prevalence of technology in their personal lives, now expect the same capabilities and level of convenience for their corporate cash management operations.”

Without the human capital or organizational freedom to explore, Banks are intelligently looking towards FinTech. As it specifically relates to B2B payments, in the developing world there is a huge opportunity for digital businesses and local banks to be included in the global financial ecosystem with much less hassle. Over the long run, look for the success of these partnerships to be fostered through a willingness to work together and overcome cultural differences.

What do you think of Deutsche Bank’s latest report? Can Silicon Valley and Wall Street work together in the long run? Share your thoughts below!

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Wall Street and Silicon Valley: A Match Made in the Blockchain

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Úno 10

Deutsche Bank Looks For Help From Bitcoin and FinTech Companies

Source: bitcoin

Bitcoinist_Collaboration

Established financial players around the world have been keeping a close eye on the advancements made by Bitcoin and other FinTech companies. Some of them have even started to develop new blockchain-based projects, in an attempt to deploy this technology as a cost-cutting measure. But by the look of things, banks will need to start cooperating with FinTech companies for B2B services, which could be positive news for Bitcoin as well. Deutsche Bank is one of the first to openly admit things need to change.

Also read: Online Gambling Made Easier by OnlineCasinoGuide

Collaboration Between Deutsche Bank And FinTech

Up until a few months ago, most of the established financial players laughed at the idea of ever collaborating with FinTech entrepreneurs or Bitcoin startups. After all, both FinTech and Bitcoin have set out to disrupt the traditional financial sector as we know it, by bringing innovation and new technologies to the table.

The tone of banks started to change when they grew an interest in blockchain technology, and formed a conglomerate to develop their version of distributed ledgers. While such a project will take years to complete – and a lot of funding as well – many people in the FinTech industry saw this as a positive sign for the things to come.

Deutsche Bank is one of the first financial institutions call in help from rivals to keep their business afloat. When you cannot beat them, you must join them, and there are plenty of willing partners in the FinTech industry. Taking existing technology and trying to make it their own is a scenario that will do banks more harm than good in the long run.

There is a major revolution going on behind the scenes of traditional banking, and the recent whitepaper published by Deutsche Bank publicly acknowledges that fact. In fact, the institution names several disruptive players by name, including Stripe PayPal, Apple Pay, and popular digital currency Bitcoin.

Without proper collaboration between all parties, a new ecosystem will not be created anytime soon. If all of these movements keep doing their own thing, a fractured financial system will be created. The primary goal should be to offer a choice of financial services to all people on this planet, and that can only happen through collaboration between banks, FinTech, and Bitcoin companies.

How Bitcoin Can Benefit From Collaboration

Looking beyond the Bitcoin price, there are a few beneficial aspects to collaboration with established financial players. First of all, many entrepreneurs in the Bitcoin world lack the guidance to wade through regulation and legislation. Secondly, Deutsche Bank has a large staff with decades of expertise in financial matters, which could be beneficial to many startups and entrepreneurs.

Finding suitable partners will be a difficult task, though, as traditional finance and FinTech do not seem to mix all that well so far. However, with open dialogue between all parties involved, Bitcoin and FinTech can make a big impact on traditional finance in a positive way, and vice versa. Lack of collaboration will put some people out of business sooner than later, and it remains to be seen who that will be.

What are your thoughts on Deutsche Bank asking for help from Bitcoin and FinTech companies? Let us know in the comments below!

Source: Deutsche Bank

Images courtesy of Deutsche Bank, Shutterstock

The post Deutsche Bank Looks For Help From Bitcoin and FinTech Companies appeared first on Bitcoinist.net.

Deutsche Bank Looks For Help From Bitcoin and FinTech Companies

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