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Staying On Top of Vendor Risk Management News: Week of July 23

Jul 27, 2018 by Branan Cooper

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. 

Wells Fargo:

  • 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

Lessons learned from the different ways Chili’s and Macy’s handled data breaches: 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.

Regulatory Developments Impact Your Next Vendor Management Exam eBook

Branan Cooper

Written by Branan Cooper

Branan Cooper is the Chief Risk Officer at Venminder. Branan has nearly 30 years of experience in the financial services industry with a focus on the management of operational and regulatory processes and controls—most notably in the area of third party risk and operational compliance. Branan leads the Venminder delivery team as the third party risk management subject matter expert in residence. Branan also serves as an industry thought leader. He's a member of InfraGard and the Professional Risk Management Industry Association (PRMIA). And, he was selected in 2018 as an advisor to the Center for Financial Professionals (CEFPro) and board member for the Global Sourcing Resource Network (GSRN).

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