Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Cyber Security, Quantum, Hacks, Fraud Alerts, Risks, InsurTech
The Benefits of IT Support for Financial Firms
Jun 3, 2024
Maintaining a robust IT infrastructure is not just an operational necessity but a strategic advantage. The benefits of IT support for your financial firm extend far beyond mere technical assistance, encompassing enhanced security, improved efficiency, regulatory compliance, and a competitive edge in the market. This article explores IT support's multifaceted advantages for financial institutions.
Enhanced Security and Data Protection
Handling vast amounts of sensitive data, including personal information, financial transactions, and proprietary trading algorithms, means the stakes are high. Any data breach can have severe consequences, including financial loss, reputational damage, and regulatory penalties. If you want to learn more about enhanced security support, go to www.getprosource.com.
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Data Encryption and Protection
IT services ensure that your data is encrypted both in transit and at rest, making it significantly harder for unauthorized parties to access sensitive information.
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Cybersecurity Measures
Advanced cybersecurity measures, including firewalls, intrusion detection systems, and anti-malware software, help to detect and prevent cyber threats before they can cause harm.
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Regular Security Audits
Regular security audits and vulnerability assessments conducted by IT support teams help to identify and mitigate potential security risks, keeping you ahead of cybercriminals.
Improved Operational Efficiency
Efficiency is paramount in the financial sector, where time is money. IT support streamlines operations, reduces downtime, and improves overall productivity.
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Automated Processes
IT support services facilitate the automation of routine tasks, such as transaction processing, account management, and reporting, reducing human error and freeing up staff for more strategic activities.
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Network and System Monitoring
IT support teams continuously monitor networks and systems to detect and resolve issues promptly, minimizing downtime and ensuring uninterrupted financial services.
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Efficient Communication
Tech experts enable seamless communication within your organization through advanced communication tools and platforms, leading to better decision-making and faster response times.
Regulatory Compliance
Compliance with regulatory requirements is a major concern for financial firms. Non-compliance can result in hefty fines and legal repercussions. IT support plays a crucial role in ensuring that your financial institution adheres to industry regulations.
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Data Management and Reporting
Tech support assists in managing and maintaining accurate records of all transactions and client interactions, essential for meeting regulatory requirements related to transparency and accountability.
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Compliance Software
IT support provides and maintains compliance software. This tool automates the process of monitoring transactions and identifying any suspicious activities, helping you comply with anti-money laundering (AML) and know your customer (KYC) regulations.
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Audit Trails
Comprehensive audit trails maintained by IT systems ensure that all financial activities can be tracked and reviewed as needed, critical for regulatory inspections and internal audits.
Competitive Edge
In the highly competitive financial industry, staying ahead of the competition is crucial. IT support can provide your firm with the technological edge needed to differentiate yourself from competitors. IT management by AxiaTP can help you streamline your operations, enhance security, and ensure seamless communication across your organization.
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Advanced Analytics
IT support enables the use of advanced analytics tools that can process large volumes of data to generate actionable insights, helping you identify market trends, optimize investment strategies, and improve customer service.
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Customer Relationship Management (CRM)
IT support ensures the smooth operation of CRM systems that track client interactions and preferences, allowing you to offer personalized services and build stronger relationships with your clients.
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Innovation and Development
Focus on innovation and the development of new financial products and services, including the implementation of blockchain technology, artificial intelligence (AI) for predictive analysis, and mobile banking solutions.
Disaster Recovery and Business Continuity
Your financial firm must be prepared for any eventuality, including natural disasters, cyber-attacks, or other disruptions. IT support plays a vital role in ensuring business continuity and disaster recovery.
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Backup and Recovery Solutions
IT support provides robust backup and recovery solutions that ensure critical data is regularly backed up and can be quickly restored in the event of a disaster, minimizing data loss and ensuring business operations continue with minimal interruption.
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Business Continuity Planning
IT services assist in developing and maintaining comprehensive business continuity plans that outline the steps to be taken in the event of a disruption, ensuring preparedness.
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Redundant Systems
These systems ensure that your firm can continue to operate even if primary systems fail, including redundant servers, data centers, and network connections.
Cost Management
Effective IT support leads to significant cost savings for your financial firm. By optimizing IT infrastructure and processes, you can reduce operational costs and improve your bottom line.
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Outsourcing IT Services
Outsourcing IT services to specialized providers can be more cost-effective than maintaining an in-house IT department, offering scalable solutions tailored to your specific needs.
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Efficient Resource Utilization
IT support helps to optimize the utilization of IT resources, ensuring that hardware and software are used efficiently, reducing unnecessary investments in new technology and minimizing waste.
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Predictable IT Costs
With IT support, your firm can benefit from predictable IT costs through fixed-rate service agreements, allowing for better budgeting and financial planning.
Conclusion
The benefits of IT services for your financial firm are extensive and multifaceted.
See: Exploring ARK’s 2024 Big Ideas: AI & Fintech Future
From enhancing security and operational efficiency to ensuring regulatory compliance and providing a competitive edge, IT support is an indispensable asset. By leveraging the expertise and resources of IT support teams, you can navigate the complexities of the modern financial landscape with confidence and agility.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Elliptic Publishes New Research on AI and Money Laundering
AI Research | May 31, 2024
Image: Freepik/macrovector_official
Elliptic's new AI research advances blockchain analytics, enhancing risk detection and transaction analysis
Elliptic, in collaboration with the MIT-IBM Watson AI Lab, has unveiled updated research showcasing the potential of AI in enhancing blockchain analytics, and more specifically using AI to detect money laundering in crypto markets. The study uses deep learning models to identify money laundering activities, using the extensive Elliptic2 dataset comprising over 200 million transactions. This approach not only detects known laundering patterns but also uncovers new, previously undetectable illicit activities.
Instead of concentrating on finding specific unlawful wallets, Elliptic's AI models identify "subgraphs," which are collections of transactions that indicate laundering operations. A more thorough and precise detection of money laundering is possible with this approach. The AI model used in the study demonstrated remarkable performance measures, such as an F1 score of 0.933 and a ROC-AUC of 0.889. The model's effectiveness was validated through practical testing with a cryptocurrency exchange, which correctly detected 14 out of 52 flagged subgraphs as potentially related to money laundering.
See: FINTRAC Guidance on Bitcoin ATMs and Money Laundering
Elliptic has made the Elliptic2 dataset publicly available in addition to its technical accomplishments in order to promote additional study and advancement in the area. By encouraging cooperation and creativity, this openness hopes to improve the identification of illegal cryptocurrency activity. Read the full research paper here.
Final Thought
The creative application of AI in blockchain analytics by Elliptic's new research is a major advancement in the battle against financial crime. Through the utilization of vast datasets and sophisticated artificial intelligence methodologies, this study improves the security and transparency of blockchain transactions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Why You Need Immutable Backups and How They Work
May 30, 2024
Immutable backups are now critical for data protection and disaster recovery. Immutable Backups are data copies that do not change for a specified period. Copies of data in this way prevent corruption, deletion, and insertion. This feature guarantees the integrity and availability of important data, even if cyberattacks or human mistakes lead to disaster.
Why are Immutable Backups Important?
The immutable backup has become an indispensable piece of modern data protection methods. When dealing with cyber risk actions that are always changing and data loss cases on the increase like now, the significance of the immutable backup can never be overemphasized. By retaining the integrity and accessibility of important data, immutable backups allow organizations today to negotiate our intricate digital world with confidence in business continuity and regulatory compliance. Here is why immutable backups are necessary:
- Protection Against Data Loss: Through immutable backups, a company should become resistant to loss caused by ransomware attacks, hardware failures, or mistakes on people's part. A good management policy makes rapid restoration without sacrificing data integrity possible for any organization.
- Compliance and Regulatory Requirements: Many industries are subject to strict data retention and integrity regulations. These organizations can use Immutable backups to assist with reaching standards of compliance, making their data always unaltered and ready for challenge by regulatory agencies at any time.
- Data Resilience and Business Continuity: From natural disasters and pandemics to cybersecurity breaches, businesses can quickly recover critical systems and data in case of unexpected immutable backups. It can help minimize downtime and ensure that operations go uninterrupted.
Immutable Backup vs. Traditional Backups
Immutable backups represent a paradigm shift in data protection: they offer security and resilience that traditional backup systems cannot match. Unlike traditional backups, which are susceptible to tampering and deletion, immutable backups offer an unalterable copy of data. This safeguards the data against organization-wide attacks from ransomware, insider threats, or even if someone accidentally overwrites their whole system. With strict controls to prevent data manipulation, the integrity and availability of critical data are forever safeguarded by immutable backups.
See: India Biometric Data Breach Highlights Cybersecurity Risks
By contrast, traditional backups provide a means to recover data but lack the inherent immutability required for modern security challenges. Such systems are vulnerable because they allow an adversary to exploit open holes in their basic design and delete or alter their backup data. It seriously threatens an organization's ability to recover from loss of data events effectively. Immutable backups bring an element of proactiveness to the protection of data. They are intended to help shore up digital landscapes that have become increasingly volatile over recent years and thus provide a stable platform for business continuity.
How Does Immutable Backup Work?
Immutable backups utilize various technologies and techniques to attain data integrity and immutability.
- Write Once, Read Many (WORM): Immutability data is written to storage media so that it cannot be modified once written. WORM is used in constructing immutable backup systems; it won't allow unauthorized changes or deletion of data once written, ensuring data integrity for disaster recovery methods.
- Encryption and Access Controls: To maintain data confidentiality, immutable backups are often encrypted. Traditional user authentication is combined with access control mechanisms for further security and content management control on the backup data.
- Versioning and Timestamps: Immutable backup systems maintain version history and timestamps for each backup. It allows administrators to track changes over time and verify data integrity in their backups.
Best Practices in Managing Immutable Backups
These best practices can help ensure that immutable backups are effective:
Regular Testing and Validation: Growing storage costs don't necessarily require larger storage budgets; by regularly testing and validating backup recovery processes, organizations can guarantee that their backup systems are reliable and effective. If data loss scenarios are periodically simulated, recovery drills are carried out, and so on, whether the data remains intact as it should. Very early problems occur during restoration. Applications can be brought into operation quickly but with stable storage conditions. When a problem occurs, this proactive approach further serves to help pinpoint the points at fault in a rush -- thus providing customers with other newly-published channels.
- Offsite Storage and Redundancy: Backing up data that cannot be changed in geographically diverse locations is necessary to keep data from being lost due to local disasters. It will also shield the quality of your backups. Storing alternate copies of backup data on different sites or cloud regions provides companies with backups that protect against natural disasters, fires, infrastructure failures, etc. This decentralized storage method retains the data at multiple locations to improve data availability and include standby capability in the event of unforeseen incidents.
- Secure Access Controls: To avoid unauthorized viewing of backup data, altering the information, and other harmful acts, you should always carefully implement patrolling and authentication. Companies can stop malicious attackers and unauthorized users from breaking through backup systems or changing the data store simply by laying down strict permissions with strict adherence to strict authentication policies. A comprehensive security strategy that includes features such as multi-factor authentication authority, role tracking, and cryptographic tools is what the security of backup data needs to be planned.
- Continuous Monitoring and Alerting: To identify and respond effectively to backup systems threats or anomalies, ensuring that effective means of continuous monitoring alerting are installed becomes necessary. It allows organizations to intercept attempts upon data, unauthorized modifications, or any other security incidents immediately. Enabling alerts and notifications to managers about potential problems carries out urgent responses and amelioration moves in certain cases, thereby preventing security break-ins or data leaks from affecting business operations.
Immutable Data Storage with Ootbi
Ransomware-proof and immutable out-of-the-box, Ootbi by Object First delivers secure, simple, and powerful backup storage for Veeam customers. The appliance can be racked, stacked, and powered in 15 minutes. Ootbi is built on Zero Trust Data Resilience (ZTDR) principles and delivers S3 native immutable object storage designed and optimized for unbeatable backup and recovery performance, specifically tailored for Veeam storage needs. Eliminate the need to sacrifice performance and simplicity to meet budget constraints with Ootbi by Object First.
Conclusion
With modern data protection strategies, immutable backups have become an essential defense mechanism for business units against potentially losing or tampering their information resources. Whether stored electronically or in printed form, they offer protection from theft and misuse, ensuring data remains intact and unaltered. Organizations can safeguard their most valuable asset: unabridged information by maintaining immutable backup data and ensuring its availability for recovery following a disaster. Adopting best practices and leveraging sophisticated solutions like Ootbi enables organizations to mitigate risks and maintain business continuity in an increasingly complex threat environment.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Generative AI and Major Human Rights Fintech Risks
GenAI | May 28, 2024
Image: Freepik/rawpixel.com
Key GenAI Human Rights Risks That Fintech Companies Need To Mitigate
As generative AI (GenAI) technologies are increasingly being integrated into fintech companies to create unrivalled opportunities for efficiency and innovation, fintech founders need to develop responsibly and respect the most crucial human rights. B-Tech, a project of the UN Human Rights Office of the High Commissioner has published an informative paper linking these risks to the Universal Declaration of Human Rights (UDHR) in a recent report titled, "Taxonomy of Human Rights Risks Connected to Generative AI". Such risks include threats to privacy, further discrimination and bias, job displacement that leads to economic instability, and an infringement on freedom of expression and access to true information. Below are some key fintech related risks. Let's dig in...
1. Privacy and Data Protection
"No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks." UDHR Article 12
Financial technology companies are processing reams of sensitive personal data. GenAI technology enhances the data analytics, but at the same time, it risks serious threats to privacy. The greatest fears are around the deepfake abuse, unauthorized data scraping, and intrusions into the privacy of personal data.
- The capability of creating convincingly realistic fake content will implicate identity impersonation for the purposes of fraud.
- The malpractice of unapproved data scraping of personal data from social media and other sources is likely to lead to violation of privacy.
2. Prejudice and Bias
"All are equal before the law and are entitled without any discrimination to equal protection of the law." UDHR Article 7
GenAI systems can further highlight, replicate, and amplify training data bias, leading to adverse practices in credit scoring, loan approval, customer service, among others.
- AI-trained models built from biased data sets could unfairly deny loans or credit to certain demographic groups.
- Automated processes and decision making may further exacerbate the already existing socioeconomic inequalities.
3. Right to Work and Economic Stability
"Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment." UDHR Article 23(1)
Potential GenAl applications in fintech may automate even repeatable jobs, thus leading to relocation of employment opportunities. This affects the economic stability and right of gainful living.
- Automation of customer service and compliance positions could see significant job displacement.
- The shift to AI-driven processes will likely expand the economic gap and truly affect a wide range of labour, not just the unskilled
4. Freedom of Expression and Access to Information (Bill of Rights Chapter Four)
"Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers." UDHR Article 19
In fintech, the key is trustworthy information to support making informed decisions based on facts and reliability. AI in its current form might propagate misinformation adversely affecting trust in financial systems and fuelling the flow of incorrect information.
See: CAI’s Draft AI Framework for Human Rights
- A fake piece of financial news produced by AI could fuel market manipulation and investor confidence loss.
- Overreliance on AI for information can lead to a failure to tap multiple, diverse, and reliable sources of information.
What Could Happen If There's a Breach?
A violation of any of these human rights can lead to various forms of recourse:
- Individuals can seek redress under data protection regulations, for example, the General Data Protection Regulation (GDPR) in Europe. This regulation calls for strict privacy protections and tends to impose severely high penalties for non-compliance.
- A breach involving discrimination or bias may trigger anti-discrimination laws, which prohibit unfair treatment on the basis of race, gender, ethnicity, and other protected characteristics.
- A violation of the right to work and economic stability, employees can claim based on employment and labor laws that protect against unfair dismissals or unsafe working environments.
- Financial regulators, such as the SEC in the US have the authority to investigate and litigate fintech businesses on breaches of the financial regulations that have a consumer protection and ethical behavior conduct element.
- Most countries have human rights commissions or kinds of bodies through which the complaints filed are taken to the extent of taking any necessary measures against firms abusing human rights.
See: The Battle for Privacy in the Digital Age
- Filing of class action lawsuits can lead companies to alter unethical practices.
- Another remedy is through individual law suits for recovery of damages due to an injury suffered because of a breach.
- Negative media or influencer publicity would publicly exposed the fintech firm and it would tarnish its reputation, which would press the firm to change its practices. Advocacy groups could also have campaigns for more awareness to make companies accountable.
- Shareholders and investors pressure fintech companies to maintain ethical practices and respect for human rights, leading corporations to shift their policies and practices.
As one can see from the long list above, violated individuals and organizations have a range of channels to seek redress and hold the fintech companies accountable for human rights violations.
How to Proactively Mitigate Human Rights Risks in Fintech
Several best practices that fintech companies and financial institutions might adopt to proactively mitigate these risks of human rights.
1. Implement Ethical AI Guidelines and Conduct Regular Audits
- Adopt and enforce policies that make ethics and human rights the key considerations in the development and application of AI.
- Establish internal review boards for the AI projects to ensure that the projects are within the ethical standards and human rights principles.
- Conduct regular audits of AI systems and algorithms to prevent data from having bias or that algorithms don't further bias the data thus making unfair and discriminatory practices.
See: India Biometric Data Breach Highlights Cybersecurity Risks
- Use privacy impact assessments regularly to prevent data protection and privacy threats.
- Conduct AI operations, decision-making, and policies on the use of data in a transparent manner and publicly report on the use of AI including any measures to mitigate human rights-related risks.
2. Engage Stakeholders and Invest in Training
- Collaborate with human rights industry experts, organizations, and regulatory bodies to keep on top of best practices and evolving standards.
- Engage a diversity of stakeholders, inclusive of customers and affected communities, in the development and review of AI systems.
- Train all employees comprehensively in ethical AI practices, data privacy, and human rights.
3. Data Protection and Inclusive Innovation
- Develop strong management and data security measures to protect sensitive, personally identifiable information from potential breaches and unauthorized access.
- Put anonymization and encryption methods into place for personal data.
- Use diverse training data when developing AI solutions to reduce bias.
4. Establish Clear Recourse Mechanisms
- Stay informed of the laws and regulations in force. Adhere to industry standards and guidelines for the ethical use of AI and fintech operations.
- Prepare, develop, and implement plans to remediate any harm that has been caused by the AI system.
See: NIST Insights: GenAI Risk Management Framework
- Setup clear way to handle complaints and grievances related to the outcomes of the AI systems.
- All leaders in the company must commit to practising and ensuring an ethical corporate culture that encourages ethical behaviour, transparency, and respect of human rights.
Conclusion
Generative AI is a game-changer in fintech but it can amplify potential human rights risks. Companies big and small are advised to proactively mitigate core risks through privacy-first design, elimination of biases through culture, staff training, and ethical leadership and integrity around the processes and information within their organizations. Businesses need to embrace ethical guidelines, be subject to periodic audits, and include stakeholders in the process of building trust and responsibility in the use of AI for financial services.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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India Biometric Data Breach Highlights Cybersecurity Risks
Cybersecurity | May 24, 2024
Image: Freepik/macrovector
A recent leak of biometric data in India is a 'stark warning' about the evolving risks that law enforcement bureaus across the world are now facing
Tens of thousands of Indian police officers and applicants have had their personal biometric data compromised, consisting of fingerprints, facial scans, and other sensitive information in what is now the most massive data breach in the country. Security researcher Jeremiah Fowler discovered close to 500 GB of sensitive data on an exposed server linked to ThoughtGreen Technologies.
See: Unlocking Opportunities in India: Ontario’s Fintech and Cybersecurity Export Events
Fowler said the exposed data was critical in nature because biometrics cannot be changed like most other personal information if the data was compromised. More than 284,000 documents on police personnel were among the leaked data, underlining the enormity of the hack.
The risk increased when these cyber criminals began advertising the sale the same biometric data through outlets like Telegram.
ThoughtGreen Technologies has secured the breach of its data and notified law enforcement however, the breach triggered discussions about the adequacy of measures for data protection and the biometric information that is subject to misuse. As the accumulation of biometric data spreads, these become harsh signals. Risks relating to inadequate data protection are relevant, and such leaks in some nations would have disastrous impacts.
See: Mastercard Announces Cybersecurity Winners and 6 New Start Path Participants
Takeaways
- Organizations dealing with biometric information are required to enhance their security measures.
- The existing regulatory frameworks with regard to sensitive information need to be fortified.
- Risks from data breaches can be minimized with awareness and proactive measures.
Conclusion
The Indian biometric data comes as a clear sign that the practices in place that guard such information are not strong enough and need improvement. With the rise in biometric data collection around the world, governments and other organizations are encouraged to take strict security measures in an effort to deter such cases and to protect the rights and privacy of people.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How Car Insurance Works in Different Provinces
May 21, 2024
Image: Unsplash/why kei
For drivers around the world, car insurance holds great significance as it provides them with financial safety against accidents, thefts, or other unforeseen events. But, how car insurance works may be different among provinces within a country, which is the case in Canada.
For instance, Canada has ten provinces and each one has its own laws and regulations, including car insurance. Not to mention that insurance prices vary from $1,300 to $1,800, depending on your area.
Knowing these variations is crucial for drivers to make sure they have proper coverage. In this article, we will explore how car insurance works in various provinces, pointing out important differences and things to consider.
Importance of Local Insurance Brokers
Local insurance brokers are important as they help with the complexity of car insurance across provinces. They have good knowledge about regional insurance landscapes and can give customized solutions depending on personal requirements.
For instance, if you are living in Nova Scotia, search for a broker that specializes in Nova Scotia car insurance policies. They will help you select the proper policy tailored to your requirements, which also abides by all laws and needs in this particular province.
Mandatory Coverage Requirements
In many provinces, laws and regulations require a basic level of insurance coverage that drivers should possess. This generally includes liability coverage, which pays for damages and injuries caused by the driver to others in an accident where they are at fault. But, the minimum required protection can vary greatly from one place to another.
For instance, in areas such as Ontario or British Columbia, the lowest amount of coverage needed is different from provinces like Alberta or Quebec. Understanding these differences is very important for drivers to follow the law.
No-Fault System
The rules of who is at fault in accidents differ by province, and this also impacts car insurance. Some provinces have a setup called no-fault. In these places, each driver's insurance pays for their injuries and damages regardless of who caused the accident. This design is meant to streamline the claims process and reduce legal battles by providing quicker compensation for those who are harmed.
Many provinces have restrictions on how much money can be claimed for certain types of injury. These limits are known as "caps" or "monetary thresholds," and they establish the highest possible amount that you could get from an insurance claim in those circumstances.
Insurance Rates and Factors
Because of factors like how many people live in the province, how often accidents happen, and the rules on insurance, the rates can be very different in each province. Places with more people per square foot or more urban areas usually have higher rates because there is a greater risk of accidents and thefts happening.
Furthermore, aspects such as one's age or their records regarding driving along with what kind of vehicle they are using, might also cause discrepancies in insurance premiums across provinces. For instance, young people who are just starting to drive or people with a record of accidents might have to pay more for their premiums.
Additionally, the kind of vehicle being insured can affect how much you pay for your coverage as well. Luxury cars and those that perform at high levels usually require bigger premiums because they carry more costly repairs and replacement expenses if damaged in an accident.
Knowing about these different rates helps drivers prepare and control what they spend on insurance coverage, which lets them choose wisely in terms of coverage types as well as potentially reducing their premium costs through proactive actions.
Image: Unsplash/CHUTTERSNAP
Coverage Options and Add-Ons
Apart from the necessary coverage, car insurance in various provinces also gives optional coverage and add-ons. These can consist of additional liabilities covered, such as protection for uninsured motorists or rental vehicles. The availability and cost of these choices may differ among provinces with some providing more comprehensive coverings than others.
For drivers, it is important to think about insurance and understand the options that can be added for more specific coverage. Taking a look at these extra coverage choices will help drivers improve their protection and reduce expenses in unexpected situations, giving them peace of mind while on the road.
Regulatory and Consumer Protections
The car insurance industry is supervised by provincial regulators, who ensure it operates correctly and protects customers. Every province has its own set of rules for insurance practices. This includes guidelines on how claims should be handled, ways to handle disagreements or problems between parties involved in an insurance contract (also known as dispute resolution), as well as laws that protect the rights of consumers.
See: Ontario’s FSRA Spearheads Insurance Innovation with Direct Access Model
This knowledge gives drivers the ability to choose wisely, find correct solutions when necessary, and confirm they are treated fairly in the insurance system. It helps create an insurance environment that is transparent and responsible for all people participating in it.
Bottom Line
Car insurance functions in different ways among provinces, with differences in coverage requirements, legal structures, rates, coverage choices, and regulatory safeguards. Drivers need to be mindful of these variations so they can have enough coverage that is according to the law and fulfills their particular needs. By comprehending the functioning of car insurance across various provinces, drivers can make wise choices for safeguarding themselves and their automobiles on the road.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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FINTRAC Guidance on Bitcoin ATMs and Money Laundering
Bitcoin ATM Guidance | May 16, 2024
Image: FINTRAC
The Role of Crypto ATMs in Laundering Proceeds of Crime
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued a Sectoral and Geographic Advisory "The Role of Virtual Currency Automatic Teller Machines in Laundering the Proceeds of Crime" to highlight the risks and provide guidance to businesses, financial institutions, and the public. Cryptocurrency has revolutionized the financial landscape, offering unprecedented accessibility and anonymity. However, these advantages also attract illicit activities. One growing concern is the use of virtual currency automated teller machines (ATMs) in laundering proceeds of crime.
Understanding Crypto ATMs
Virtual currency ATMs, also known as Bitcoin ATMs, are internet-linked terminals allowing users to exchange fiat currency, such as Canadian dollars, for cryptocurrencies. Unlike traditional ATMs, these machines do not require a bank account, directly connecting users to the virtual currency exchange. While most transactions are legitimate, the ease of converting cash to crypto makes these ATMs an attractive tool for money laundering.
Geographic Hotspots
FINTRAC's advisory identifies significant risks associated with virtual currency ATMs. Based on suspicious transaction reports, key hotspots include the Greater Toronto Area, Greater Montréal Area, and Metro Vancouver, with notable volumes of suspicious activities also in Edmonton, Calgary, Winnipeg, Nelson, Abbotsford, Victoria, Ottawa, and Hamilton.
See: Tornado Cash Developer Sentenced 5 Years Prison
These machines are pivotal in the "placement stage" of money laundering, where illicit cash is converted into virtual currency, making the source of funds difficult to trace. Criminals use various techniques to obscure the identity of those controlling the funds, including falsified identities and money mules.
Emerging Trends and Techniques
The advisory highlights several trends and techniques used by criminals:
- Structured deposits is a red flag. Depositing funds in amounts just below reporting thresholds, often using multiple virtual currency ATMs and different phone numbers to avoid detection.
- Utilizing channels that are more complicated to track such as private wallet addresses, darknet markets, online gambling platforms, high-risk exchanges, peer-to-peer exchanges, and mixers to launder funds.
- Fraudsters coaching and manipulating victims over the phone to complete transactions, often seen in video monitoring footage from ATMs.
Compliance and Due Diligence
FINTRAC emphasizes the importance of compliance. Virtual currency ATM operators must implement robust policies, procedures, and internal controls, including client identification and ongoing monitoring of high-risk transactions.
See: Metacrime in the Metaverse
Failure to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) can result in severe penalties, including fines up to CAN $2,000,000 and imprisonment.
Consumer Awareness and Protection
Consumers are urged to be cautious of scams involving virtual currency investments. Fraudulent schemes often solicit investments through social media or impersonate government agencies to extort payments. Individuals should thoroughly research any virtual currency exchange or investment opportunity and be wary of offers that seem too good to be true.
How to Report Suspicious Activities
If you encounter suspicious transactions or suspect money laundering or terrorist financing activities, report them to your financial institution and FINTRAC. In urgent cases, contact local law enforcement. Victims of fraud are encouraged to report to the Canadian Anti-Fraud Centre.
Download the 9 page PDF Guidance on Crypto ATMs and Money Laundering --> here
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