The Importance of Cybersecurity in Risk Management

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago December 6, 2019 3,106 Views Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Tagged with: Cybersecurity Technology Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Importance of Cybersecurity in Risk Management Servicers Navigate the Post-Pandemic World 2 days ago This week, Safeguard Properties hosted a webinar to discuss the challenges facing cybersecurity in 2019. Security, Safeguard notes, should be one of the primary focuses when implementing and developing systems and applications.Cybersecurity remains a top concern at a majority of lending institutions, according to the 2019 Regulatory & Risk Management Indicator released by Wolters Kluwer, and 78% of lenders reported it as a top risk that will receive “escalated priority” in the next year. While cybersecurity outranks all other risks in the survey, the level is down from 81% last year.During Safeguard’s webinar, Steve Roesing President and CEO of ASMGi, 2019 stated that the majority of data breaches from malicious attacks, with 69% of data breaches stemming from outside sources, as 51% of breaches are caused by malicious or criminal attacks.Meanwhile, just 24% of breaches are caused by human error, while another 25% are caused by system glitches.“It’s almost a 50-50 split,” said Roesing.Malware attacks made up 34.4% of attacks in 2019, the largest share of any other attack type. Meanwhile, account hijacking made up 18.2% of attacks. Among financial services institutions, there were 927 reported incidents, 207 of which included confirmed data disclosure. We applications, privilege misuse, and other miscellaneous errors made up 72% of breaches.Most malicious breaches, 88%, were reportedly done for financial reasons, while espionage made up another 10%.Cybersecurity, Safeguard notes, requires a “holistic approach,” involving both policy and systematic controls at all levels.Some of the trends noted in the webinar included the changing landscape of “phishing,” the increased use of mobile technology for attacks, and increased investments in cybersecurity. Going into 2020, Safeguard expects to see increased spending and a growing impact from AI and machine learning (ML) on cybersecurity. Previous: GSEs Move Closer to Public Offering Next: Mortgage Servicing: Keeping Up With the Consumer Servicers Navigate the Post-Pandemic World 2 days ago Share Save Related Articles The Best Markets For Residential Property Investors 2 days agocenter_img Home / Daily Dose / The Importance of Cybersecurity in Risk Management Cybersecurity Technology 2019-12-06 Seth Welborn Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, News, Technology Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborn  Print This Post Subscribelast_img read more

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2021-05-31

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The biggest pay day lending surprise

first_imgThe biggest surprise in the CFPB’s pay day lending proposal is not what it says, but what it doesn’t say. The omission underscores yet again why Congress pushed the Constitution‘s tolerance of administrative powers to the breaking point by delegating massive de facto legislative power to an unelected independent agency.One of the things  geeks like me do when reviewing  proposed regulations is go to the section of the preamble explaining  where an agency gets the power to do what it is proposing.  Remember, the Constitution says nothing about administrative agencies; regulations are sanctioned because of the increasingly questionable premise that they are authorized by specific laws.Congress gave the CFPB regulatory authority over almost every important consumer lending regulation ranging from Regulation B to the Truth in Lending Act’s Regulation Z.  So, I was perplexed when the CFPB made no mention of the Regulation Z or the Truth in Lending Act when it proposed its payday lending restrictions.  Instead it relied on its power to regulate Unfair Deceptive and Abusive Practices  (12 USCA 5531 )What gives?  I suspect that when the CFPB was deciding how it could define and regulate payday loans it was unsure of its authority to do so under the Truth In Lending Act, which, for all its complexity, is primarily designed to insure that consumers have accurate information about a loan’s credit costs.  Rather than  restrict the use of  specific lending products,In contrast, the CFPB’s UDAP powers, which are modeled after state laws, have been defined as broad and vague.  For example, to find that a practice it is seeking to regulate is unfair, it has to have a reasonable basis to conclude that its potential risks are not outweighed by countervailing benefits to consumers or to competition.  Another set of criteria can lead to a finding that a practice is abusive.  Either way, the Bureau’s UDAP powers are broad enough to invalidate almost any practice the Bureau doesn’t like.Why does this matter?  It’s one thing for Congress to mandate, as it did in Dodd Frank, that the Bureau take specific steps to regulate mortgage lending and servicing practices, or to authorize caps on loans to military personnel under the Military Lending Act.  It’s quite another to authorize the CFPB to amend any regulation it doesn’t think goes  far enough to protect consumersTILA was passed in 1968.  Although the CARD Act imposed substantive restraints on credit card  lenders, its primary goal has always been to strengthen the informed use of credit by making consumers aware of its costs.  But now Who needs Congress?  What UDAP allows the Bureau   to do is effectively amend laws by promulgating  regulations that it might not otherwise  be authorized to make.For the record, I’m at best ambivalent about payday loans, but there are bigger issues at stake here.  It’s time for the courts and Congress to look at the whole forest and not just the individual trees. Supporters of the CFPB are often thought of as wide-eyed idealists out to protect the little guy from big business. But it’s not idealistic to so  disdain the legislative process that you create an entity designed to circumvent it. And that is exactly what Congress has done.    By creating the CFPB and giving it UDAP powers in addition to jurisdiction over most consumer regulations, Congress delegated a broad swath of its legislative powers and responsibilities to unelected bureaucrats.  I for one believe that this  wholesale abdication of Congressional responsibility is undemocratic and ultimately unconstitutional. 53SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Henry Meier As General Counsel for the New York Credit Union Association, Henry is actively involved in all legislative, regulatory and legal issues impacting New York credit unions. Whether he’s joining … Web: www.nycua.org Detailslast_img read more

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2020-12-18

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