Page 4 - February 20, 2025 Bulletin

BANKING
ARTICLES

Lawmakers Introduce Resolution to Study Finds Most People Can’t Spot
Overturn CFPB Overdraft Fee Cap Deepfakes

The leaders of the congressional committees overseeing the A recent study of 2,000 U.S. and U.K. residents found that the
financial services sector have introduced a resolution to overturn vast majority of participants couldn’t distinguish between real
a CFPB rule capping fees for overdraft services. content and deepfake images and video. In research conducted
by the biometric identity verification provider iProov, only 0.1%
The Congressional Review Act resolution would overturn a
Biden-era rule that requires banks with at least $10 billion in identified all deepfake and real media presented to them, even
assets to cap overdraft fees at $5 unless they voluntarily set a after they were told some of the media would be fake.
cap that covers their actual costs and losses or treat overdraft Roughly one in five consumers (22%) had not heard of deepfakes
protection as a loan covered by the Truth in Lending Act. The before the study, according to iProov. Age was a factor, with 30%
Senate resolution is sponsored by Senate Banking Committee of participants ages 55-64 and 39% of those ages 65 or older
Chairman Tim Scott (R-S.C.) while the House version is saying they never heard of deepfakes.
sponsored by House Financial Services Committee Chairman Deepfake videos proved more challenging to identify than
French Hill (R-Ark.). Both resolutions have multiple cosponsors, deepfake images, with participants 36% less likely to correctly
including Senator Cramer.
identify a synthetic video compared to a synthetic image.
Read more: https://www.banking.senate.gov/newsroom/majority/ Participants were “overly confident” in their deepfake detection
scott-hill-lead-effort-to-roll-back-biden-era-cfpb-overdraft-rule skills at over 60%, regardless of whether their answers were
correct. Young adults ages 18-34 were especially confident despite
Fed Reschedules ISO 20022 their inability to spot many deepfakes.
Implementation for Fedwire Read more: https://www.businesswire.com/news/
home/20250211131029/en/iProov-Study-Reveals-Deepfake-
The Federal Reserve has announced that it has pushed back by Blindspot-Only-0.1-of-People-Can-Accurately-Detect-AI-Generated-
four months the implementation date of the ISO 20022 message Deepfakes
format for the Fedwire Funds Service, from March 10 to July 14.
The delay will provide customers and vendors who are not ready Trump Nominates Gould to OCC,
additional time to better prepare for the transition to the new
ISO 20022 format, according to the Fed. McKernan to CFPB

Fedwire enables businesses and financial institutions to transfer President Trump has sent to the Senate the nominations of
funds. When it originally announced the change, the Fed said Jonathan Gould to be comptroller of the currency and Jonathan
that adopting the new message format will allow for enhanced McKernan to be director of the CFPB.
efficiency of domestic and cross-border payments due to “greater Gould, a financial regulatory attorney in private practice, was
interoperability among global payment systems, and a richer set previously senior deputy comptroller and chief counsel at the
of payment data that may help banks and other entities comply OCC from 2018 to 2021 and a top staffer at the Senate Banking
with sanctions and anti-money laundering requirements.” Committee. McKernan was from 2023 until this week the

Read more: https://www.frbservices.org/financial-services/wires appointed director on the FDIC board; he stepped down when

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