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
Speech by OSFI Superintendent Peter Routledge: Looming risks and long-term resilience
OSFI | Apr 27, 2023
Image: Unsplash/Loic Leray
Speech delivered at Economic Club of Canada on April 27
- Re-asserting OSFI’s will to act: Today I would like to speak with you about how risks facing Canada’s financial system have shifted and heightened the need for OSFI, as a prudential regulator, to act early in response to uncertainty.
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- To signify my underlying intent, I titled my first public speech as Superintendent The Fierce Urgency of Now. In that speech, and in all my subsequent public remarks, I have endeavoured to reach back to OSFI’s origin story and re-affirm our True North, or our
will to act when faced with signals of trouble
, to paraphrase Justice Willard Estey, the head of the Royal Commission that led to OSFI’s creation.
- To signify my underlying intent, I titled my first public speech as Superintendent The Fierce Urgency of Now. In that speech, and in all my subsequent public remarks, I have endeavoured to reach back to OSFI’s origin story and re-affirm our True North, or our
- Signals of trouble: Since I began my service as Superintendent, I have pointed OSFI towards a variety of trouble signals – climate change, the digitalization of financial services, and risks in the housing market to name a few.
See: JPMorgan, Reportedly Seeks to Acquire First Republic Bank
- Housing market risk:
- The housing market faces risks related to increased credit risk and potential economic downturn, which could worsen the vulnerability caused by the level of household indebtedness in Canada. Federally-regulated financial institutions should take proactive measures to manage these risks, including monitoring mortgage asset quality and engaging with industry members on loan plans. The Office of the Superintendent of Financial Institutions (OSFI) has launched a public consultation on Guideline B-20 on Residential Mortgage Underwriting Practices and Procedures and will publish a summary of feedback received from stakeholders. OSFI may also publish an advisory or interim guidance on the next steps to manage these risks.
- Climate change risk:
- Climate change poses a significant threat to human well-being and global economies, necessitating a shift away from greenhouse gas-emitting energy sources and adaptation to the impacts of a warmer climate. As nations respond to climate risks, their actions will have profound implications for Canada's economy and financial system, which will be largely influenced by international efforts rather than its own initiatives. The Office of the Superintendent of Financial Institutions (OSFI) focuses on building resilience to climate risks within Canada's financial system through Guideline B-15: Climate Risk Management, and plans to develop a standardized climate-scenario exercise for financial institutions in 2024.
See: Financial Institutions and Regulators Alike are Showing Growing Interest in Fintech and Regtech Solutions.
- Third party arrangement risk:
- Increased Dependency: Financial services industry's reliance on third-party arrangements elevates the risk to critical services and data security, with potential systemic implications due to dominant technology providers and rising cyber incidents.
- Guideline B-10 Implementation: Introduced to address third-party risk management, it reflects global regulatory trends and covers a broad range of third-party arrangements beyond traditional outsourcing.
- Efforts to improve third-party risk data quality and consistency through initiatives like the 2022-23 pilot program will inform future data aggregation, analysis, reporting processes, and guidelines to better respond to the industry's evolving landscape.
View the full speech --> here
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, 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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JPMorgan, Reportedly Seeks to Acquire First Republic Bank
Insider | | Apr 29, 2023
Image: Unsplash/Mariia Shalabaieva
JPMorgan Chase and PNC Financial Services Group are in the running to buy First Republic as the troubled lender stares down impending receivership, The Wall Street Journal reported.
- JPMorgan CEO Jamie Dimon is reportedly preparing to acquire First Republic Bank, which is facing receivership. The Federal Deposit Insurance Corporation (FDIC) has set a Sunday deadline for JPMorgan and PNC Financial Services Group to submit final bids for the troubled bank. Despite previously avoiding involvement in the rescue of Silicon Valley Bank, Dimon collaborated with the Federal Reserve to provide financial support to First Republic.
- The bank's shares have plummeted, and efforts to save itself, including exploring options with investment bankers and implementing cost-cutting measures, have proved insufficient. First Republic is worth 97% less than it did before Silicon Valley Bank collapsed last month.
- The Federal Deposit Insurance Corporation (FDIC) is preparing to put First Republic in receivership, outlets including The Journal and Reuters reported Friday.
- Bloomberg reported that JPMorgan and PNC had been given a Sunday deadline by the FDIC to submit final bids for the ailing bank.
See: How Government Could Take Control of the Banking System
Jamie Dimon, CEO, JPMorgan:
"It is extremely important that we avoid knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended," Dimon said in a letter to shareholders in early April.
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, 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 Startups are Reducing Overheads with Security Technology
April 27, 2023
Image: Freepik/rawpixel.com
For startups and small businesses, there has traditionally always been a trade-off between increased security and higher costs. However, ensuring the safety of your operations has become more affordable thanks to technological advancements.
In this article, we will discuss how technology is helping startups reduce overheads while increasing the effectiveness of their security strategy.
Reducing the need for extensive manual intervention by automating security processes
By automating security processes, startups can streamline and simplify complex tasks.
Automation has a positive effect on overheads as it reduces the need for extensive manual intervention. By automating tasks such as monitoring, detection, and incident response, startups can free up human resources for more strategic activities.
Automation also ensures that all physical security policies and protocols are followed accurately and consistently. This way, startups can reduce the risk of human error and thus contain the risk of breaches and other security incidents.
Limiting the number of people needed to supervise access points with modern access control measures
The importance of access control solutions is to make sure only authorized personnel can access the premises or specific areas. Until recently, security personnel was essential to protect areas that needed increased protection.
By implementing modern entry technologies, such as elevator access control systems, startups can limit the number of people that are necessary to supervise access points and cut costs as a result.
For example, startups can protect sensitive areas by implementing access control systems that use biometric technology, such as facial recognition or fingerprint scanning. Users need to provide their unique biometric data if they want to gain entry into the area. Installing these solutions eliminates the need for guards that manually check credentials. Moreover, these solutions can be programmed in a flexible way, allowing certain users to access them only at certain times or for special occasions.
Reducing the need for on-site support staff through remote monitoring
Another way in which technology can reduce the need for on-site security staff is by giving startups the option to monitor the premises remotely. With the use of cloud video security, those with the right credentials can access live video security footage from any place in the world with an available internet connection.
This allows startups to cut the cost associated with on-site security. Remote monitoring is particularly beneficial for those startups that need 24/7 supervision of the premises and for those businesses that have multiple offices.
Another way storing data in the cloud reduces costs is by eliminating the need for expensive hardware (e.g., NVRs or DVRs). Moreover, cloud storage gives startups more flexibility as it can be readily scaled up or down depending on current needs.
Boosting prevention with artificial intelligence and machine learning
The spread of artificial intelligence and machine learning is revolutionizing the field of physical security.
For example, AI-powered video security solutions can analyze large volumes of data in order to identify irregular patterns that may indicate suspicious activity. If an unrecognized individual is loitering on the premises, these systems can recognize this event and suspicious and alert security personnel. Quick response reduces the chance of undesirable events and related costs.
By leveraging technologies like video analytics, body-worn cameras, and sensor fusion AI, startups can set up autonomous and intelligent security systems that help prevent accidents before they occur, with an obvious positive impact on the organization's bottom line.
Reducing data breaches and related costs with advanced cybersecurity measures
According to recent stats, 46% of cybersecurity breaches affect organizations with less than 1,000 individuals, including startups. The cost of data breaches and other cyber attacks can result in significant financial damages for businesses.
Advancements in cybersecurity can allow startups to contain costs by strongly reducing the risk of becoming victims of cyber attacks.
In addition to basic cybersecurity measures like strong passwords, anti-viruses, and firewalls, startups should consider implementing encryption solutions. These work by encoding the data with a complex algorithm that authorized users can only access. This cybersecurity solution can be particularly effective when it comes to protecting sensitive financial data that cybercriminals may otherwise steal, with significant damage to the company.
Reducing insurance premiums by implementing advanced security technologies
By greatly reducing the risk of crimes, damages, and data breaches, the implementation of advanced physical and cybersecurity technologies can help startups reduce insurance premiums.
Insurance premiums can be an important burden for startups, and by implementing the right security solutions, companies can significantly reduce the associated costs.
Reducing employee training costs
By implementing the most modern security technologies, organizations can ensure their employees can access the most up-to-date and secure systems and networks. This eliminates the need for extensive training on outdated or obsolete systems, which can be costly and time-consuming.
To Sum It Up
By leveraging security technologies like cloud storage, AI-powered video analytics, and advanced cybersecurity solutions, startups can benefit from significant cost savings.
See: Security advice for emerging tech companies and investors
Cloud storage eliminates the need for expensive hardware, AI-powered video analytics reduce the risk of security incidents, and advanced cybersecurity measures help protect organizations from data breaches. Finally, leveraging security technologies can help lower insurance premiums and employee training costs.
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, 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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Calgary Police and Chainanalysis Launch the Western Canada Cryptocurrency Investigations Centre
Chainanalysis | April 12, 2023
Image: Chainanalysis
Today, the Calgary Police Service and Chainalysis are together launching the Western Canada Cryptocurrency Investigations Centre, an innovative regional center that will enable law enforcement to tackle crime that takes place using blockchain technology.
- Law enforcement agencies and personnel from Western Canada will collaborate with Chainalysis, using their blockchain analysis tools and investigations team to combat crimes involving digital assets. This will lead to increased investigative efficiency and better outcomes for citizens, ultimately increasing trust in digital assets.
- The partnership between Chainalysis and CPS will provide training and case support to law enforcement in Western Canada. This collaboration aims to equip personnel with the skills to investigate crimes involving cryptocurrencies and blockchain technology. As scams and related crimes are on the rise locally, the partnership seeks to improve investigative outcomes and deter criminal activity. Chainalysis will also offer 24/7 case support, leveraging its experience in assisting law enforcement with various high-profile cases, including seizures of billions of dollars in cryptocurrencies.
- Growing problem with increased adoption: Overall, for every 1000 Canadians, there was at least $1,144 CAD in total exposure to illicit crypto activity in 2022 alone. In only looking at the top 10 scams in terms of revenue, we see that over $41.7 million CAD was garnered through this activity in 2022 across Canada.
See: Wirecard: A Facade of Innovation…How the Biggest Fraud in German History Unravelled
Chainalysis Cofounder and Chief Strategy Officer Jonathan Levin:
Not only is this a great moment for Western Canada, but it is a first step in our work to enable law enforcement partners across the world to protect their constituents, and in turn, help build trust in blockchain technology.
Continue to the full article --> here
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, 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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Financial Privacy: SEC Launches Enormous Database Compiling All Stock Trades
Cato Institute | Jennifer J. Schulp | Feb 17, 2023
Image: Unsplash/Lianhao Qu
What little financial privacy you have when trading stocks is about to get even smaller next month. When you make a stock trade, your broker already is required by the Bank Secrecy Act to maintain records of it, monitor your trading activity, and report any suspicion of illegal activity to the federal government.
- Starting in March, your broker will be required to directly report all of your trades, including your personal information, to a massive government database. If the Bank Secrecy Act concerns you—and even if it doesn’t—just wait until you hear about the Consolidated Audit Trail (CAT).
- The Consolidated Audit Trail is intended to collect and accurately identify every order, cancellation, modification, and trade execution for all exchange‐listed equities and options across all U.S. markets, allowing the Securities and Exchange Commission (SEC) to track orders and identify who made them.
See: Office of the Privacy Commissioner Announces Digital ID Ecosystem Resolution to Ensure Transparency and Privacy
- This massive surveillance database is a financial privacy nightmare: The CAT began collecting trading data in 2020, after years of development replete with challenges and controversies. It is scheduled to begin collecting customer information on March 17, 2023. Although the SEC has limited the scope of customer information to be collected—initial plans called for Social Security numbers, dates of birth, and account numbers—brokers must still provide customer names, addresses, and birth years which allows for easy identification of individual investors.
- Most of the criticism leveled at the CAT has focused on data security. The CAT will absorb information about tens of billions of trades daily, making it quite possibly the largest database in the world. Its sheer size will be an invitation for criminals, who then‐SEC Chair Jay Clayton recognized in 2017 “could potentially obtain, expose and profit from the trading activity and personally identifiable information of investors.”
- The CAT threatens American investors’ privacy. Knowing that the SEC is watching your every trade is too great a cost for easier SEC enforcement. Despite the years of planning and expenses already incurred, the SEC should put the CAT back in the bag—or let it out only when declawed—to protect the liberties of American investors.
Continue to the full article --> here
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, 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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SEC Warns Investors: Be Vigilant Regarding Crypto Asset Securities
SEC | Release | March 23, 2024
Image: Unsplash/Maxim Hopman
The SEC’s Office of Investor Education and Advocacy continues to urge investors to be cautious if considering an investment involving crypto asset securities.
- Risk notice to investors: Investments in crypto asset securities can be exceptionally volatile and speculative, and the platforms where investors buy, sell, borrow, or lend these securities may lack important protections for investors. The risk of loss for individual investors who participate in transactions involving crypto assets, including crypto asset securities, remains significant. The only money you should put at risk with any speculative investment is money you can afford to lose entirely.
- Those offering crypto asset investments or services may not be complying with applicable law, including federal securities laws. Under the federal securities laws, a company may not offer or sell securities unless the offering is registered with the SEC or an exemption to registration is available. Similarly, the law requires parties such as securities broker-dealers, investment advisers, alternative trading systems (ATS), and exchanges to register with the SEC, a state regulator, and/or a self-regulatory organization (SRO), such as FINRA. Moreover, entities and platforms involved in lending or staking crypto assets may be subject to the federal securities laws
See: Should the SEC Be Allowed to Wage an Unsupervised Dirty War on Crypto?
- Investments in crypto asset securities can be exceptionally risky, and are often volatile.
- Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams, often leading to devastating losses.
- Having an investing plan, as well as understanding your risk tolerance and time horizon, can be critical to your investing success.
Continue to the full article --> here
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, 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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New York Judge Rules Emojis Count as Financial Advice in Dapper Labs Court Case
CoinGeek | Steve Kaaru | Mar 2, 2023
Image: Pixabay/iamaliuyar
A New York judge has ruled that Dapper Labs, the creators of NBA Top Shot Moments, used the emojis to indicate a return on investment for investors.
- Dapper Labs is facing a class-action lawsuit from investors who claim that it violated securities laws through the sale of its NBA Top Shot Moments NFT collection. The company, whose fortunes have drastically turned amid the NFT sales dip, has been fighting to dismiss the lawsuit. One of its arguments hinged on social media promotions of the Moments collection.
- We all love to use emojis to express ourselves, but the next time you use a “to the moon” rocket ship emoji, beware, as you could be offering financial advice.
See: Kim Kardashian Pays $1.26M to the SEC in Penalties for Unlawfully Touting Crypto
- Ruling: As a former Securities and Exchange Commission (SEC) official revealed recently, a New York judge has ruled that the company offered investment advice using emojis on Twitter. In his 64-page ruling, Judge Victor Marrero of the Southern District of New York subjected the Moments NFT collection to the Howey Test. Under the third prong —a security is a transaction in which there’s an expectation of profit—Judge Marrero ruled that the company’s use of emojis led investors to believe they would make a profit by purchasing the NFTs.
- The emoji accusation has sparked the most heated debate within the digital asset industry and beyond.
- Tweets with emojis in question:
Continue to the full article --> here
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, 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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