WIth a history of risk management failures, Wells Fargo can add another oops to the list - Wells is refunding "tens of millions” of dollars to customers for incorrect account charges. Read the details below and stories on the emerging risks of mobile banking, Congress working to enhance oversight of third party service provider, lessons learned from the different ways Chili’s and Macy’s handled data breaches and more.
Industry News for the Week of July 23
Well, well, Wells, what have we here?
Wells refunding 'add-on' charges
Wells Fargo is refunding “tens of millions” of dollars to customers for products such as pet insurance that were added to accounts without their full understanding, The Wall Street Journal said, citing “people familiar.” Bank of America and Citigroup have made settlements for similar incursions. But San Francisco-based Wells, which has known about the “add-ons” since at least 2015, has been beset with other scandals.
- Took a $619 charge in the second quarter for refunding customers it overcharged in its wealth-management, foreign-exchange, auto and mortgage lending units.
- Agreed to a $1 billion settlement with regulators in April for risk-management failures.
- Submitted to an unprecedented penalty by the Federal Reserve in February to cap Wells' balance sheet after it opened 3.5 million fake customer accounts.
The regulators speak out on the recently passed regulatory reform – the changes won’t impact vendor risk management in any way: Read here
More boards getting compliance training – good common sense and something I’ve always advocated: Read here
Third party breach involving the Pennsylvania Dept of Corrections – seems no one is immune to breaches: Read here
The risks of mobile banking – we struggled to ask the right questions sometimes with emerging technology: Read here
Congress working to enhance oversight of third party service providers: Read here
Banking industry stats: Read here
Rhetoric aside – the more things change, the more they stay the same: Read here
Interesting observations on states stepping in to the CFPB void: Read here
With so many third party breaches in the news, it reminds us to be proactive and have a plan. Download our ebook where we'll teach you how to prepare for one.