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Wells Fargo says hundreds lost homes after computing 'error'
Software mistakes are normally little more than inconveniences, but they had particularly serious consequences for some Wells Fargo customers. An SEC filing from the bank has revealed that a "calculation error" in its mortgage loan modification underwriting tool led to about 625 customers either being denied loan changes or not receiving offers when they would have qualified. Roughly 400 of those customers eventually lost their homes to foreclosure, Wells Fargo said. The bank stressed in a statement to CNN Money that the bug didn't necessarily cause the foreclosures, but it certainly didn't help.
You can't buy bitcoin with Wells Fargo credit cards anymore
Wells Fargo is pumping the brakes on customers using their credit cards to buy bitcoin -- the bank has banned credit card cryptocurrency purchases. However, this isn't a permanent measure, as Wells Fargo will monitor the crypto market and reassess the issue as needed, Bloomberg reports. Wells Fargo joins Bank of America, JP Morgan Chase and Citigroup, along with some UK banks, in banning credit crypto purchases.
What to keep in mind before switching to a mobile-first bank
The day I got my first-ever paycheck, I scrawled my signature on the back, went to the bank, dropped it off with a kindly teller and left with a deposit slip and a smile on my face. A few years after that, a Canadian financial titan bought my bank and started managing it differently. That made the decision to embrace an upstart, mobile-first bank -- Simple, in this case -- that much easier. I can't pretend that the idea of trusting my money to a startup wasn't a little worrisome, but the appeal of novel features and Silicon Valley speed quickly won me over and I haven't looked back. You might enjoy making the switch too, but before you pull the trigger, here are a few questions to ask yourself.
SEC charges third 'mastermind' in ICO fraud case
The SEC is clearly determined to crack down on everyone involved in Centra Tech's allegedly fraudulent initial coin offering. Officials have filed fraud charges against a third "mastermind" in the case, Raymond Trapani, for reportedly helping to whip up false claims about the $32 million ICO and manipulate trading to keep the offering's price up. As evidence, the SEC trotted out a group text message where Trapani reportedly told Centra's Sohrab Sharma to "cook me up" a fake document while trying to get the company's tokens listed on an exchange using bogus credentials.
YouTube TV brings two Cheddar digital-only shows to its lineup
YouTube TV is making its way onto a more devices and bringing quite a few live TV channels along with it, including Turner Network channels. The Google-owned service is also in quite a few markets, making it easy to access from almost anywhere. Now YouTube TV is blending digital-only channels with its broadcast lineup via the addition of two new properties, Cheddar and Cheddar Big News.
Pandora's CEO is doubling down on podcasts
By JP Mangalindan Pandora CEO Roger Lynch wants to offer listeners an easier way to discover new podcasts as the company adds more podcasts to its service and beefs up advertising. Indeed, podcasts will become a more significant aspect in the months and years ahead for Pandora, which has over 75 million monthly active users -- 5.5 million of which use Pandora's paid features and services. The key to growing those users, according to Lynch, who joined the company in September, is offering a more comprehensive catalog of content. "In the car, 80 percent of listening is music, while 20 percent is other stuff," Lynch explains to Yahoo Finance. "As a service, if you don't have that 20 percent, it doesn't mean you capture the 80 percent, because then people will just stay on their FM Radios. But if you can create audio content for people that gets packaged with the music content in a way that doesn't give them a reason to go back to that FM dial, then you capture much more than just the spoken word."
Massachusetts halts five ICOs for defying financial rules
It's not just the feds concerned about sketchy cryptocurrency fundraising. Massachusetts Secretary of the Commonwealth William Galvin has ordered a halt to the sale of five initial coin offerings (18 Moons, Across Platforms, Mattervest, Pink Ribbon and Sparkco) for offering "unregistered securities." All five listed the state as their place of business, but hadn't registered with the state to sell their wares. That should be a "red flag" to any potential investors, Galvin said.
Coinbase bug could have let anyone give themselves free ether
Cryptocurrency exchanges have had a fair share of justified criticism. They can be high-value targets for criminals, easy to hide from the IRS and easily affected by tech issues. Luckily, thanks to a bug report by financial security outfit VI Company, a nasty bug in Coinbase's cryptocurrency system has been found and fixed. The researchers found that users could add unlimited ether to their Coinbase account with some simple, easily replicated steps.
SEC guidelines push for clearer data breach disclosures
American companies haven't always been forthright about disclosing data breaches in a responsible way, and regulators want to encourage better behavior. The Securities and Exchange Commission has issued "interpretive guidance" that it hopes will both promote clearer disclosures and fewer ethical conflicts. The guidance asks companies to share more information about cyberattacks and other risks, and warns executives against trading securities before they've publicly shared the details of a breach -- they shouldn't dump shares knowing a hack will tank the company's stock price.
The only thing Equifax's new credit app locks is itself
Equifax still appears to have trouble wrapping its head around the concept of trustworthy software following its massive security breach. The company has launched its promised free credit report locking service, Lock & Alert, but there's one overriding problem: at least initially, the mobile app associated with it doesn't appear to work. The New York Times and Ars Technica both report pervasive problems with the app, ranging from the basic login to... you know, locking your credit report. In the NYT's case, the tester gave up after the locking attempt stalled five times in a row.
Can Amazon Go help the unbanked go digital?
If Amazon's newly opened Go supermarket is any indicator, shopping with physical currency won't be an option for much longer. Instead of human cashiers (or even self-checkout stands), the store relies on a range of technology to know who's shopping and what they're buying. Amazon then automatically deducts the cost of your items from your bank account. From a turnstile entrance that identifies shoppers by scanning their smartphones to tracking cameras that know what is pulled from each shelf, Amazon Go bills itself as the shopping experience of the future.
Open Banking is here to change how you manage your money
After completing a review of the retail banking sector back in the summer of 2016, the UK Competition and Markets Authority (CMA) concluded that stagnation had set in. It found that hardly anyone switches banks each year, and the huge financial institutions don't put a lot of effort into retaining or competing for business. Among a number of reforms the CMA put into motion was "Open Banking," which requires all the big banks to make your financial data accessible in a standard format. The deadline to comply with the open banking initiative passed over the weekend, and several key names have missed the launch. It's now officially up and running, however, and it promises to completely change how you choose and use all kinds of financial services.
Israel may issue cryptocurrency to speed up payments
Some countries are treating cryptocurrencies as the bane of their existence, but that might not be true of Israel -- it might see the technology as a cure. Reuters sources have claimed that the Bank of Israel is considering issuing virtual currency in order to both build a "faster payments system" and reduce the amount of conventional cash circulating in the economy. Officials are reportedly ready to include the issue in the country's 2019 budget so long as the bank approves.
First US bitcoin futures start trading at 6PM Eastern
Bitcoin is one step closer to becoming a part of the mainstream financial world. Cboe is launching the first US bitcoin futures exchange at 6PM Eastern, giving speculators a chance to bet on the value of the cryptocurrency through a listed (XBT), regulated entity. You don't use a digital wallet or otherwise require bitcoins -- instead, you trade and settle futures contracts using cash, with a $10 minimum price interval and a $1 transaction fee from January onward. There aren't any price limits, and you can short your futures (that is, immediately sell them in hopes of turning a quick profit) if your broker allows it.
Uber’s new credit card could be a tough sell (updated)
Uber isn't exactly known for protecting the privacy of its drivers or riders. Tim Cook reportedly had to threaten to remove the Uber app from iPhones after he discovered the app was "fingerprinting" iPhones with a permanent ID. The ride sharing company had to stop gathering location data from passengers, even after a ride ended, and it settled with the FTC over abuse of customer data. Now Uber is offering a new credit card, available November 2nd, which might seem a bit counter-intuitive.
EU raids banks over attempts to block financial tech rivals
You'd think that governments were waging a war against financial technology given reports of crackdowns and tighter regulation, but the opposite is true in Europe. EU officials have confirmed that they recently raided the offices of bank authorities in multiple countries, including the Netherlands and Poland, to investigate antitrust "concerns" that banks are stifling tech-driven newcomers. The banking establishment is allegedly preventing fintech companies from accessing account info despite customers granting permission, pushing people back to conventional services.
PlayStation credit card gives extra money back for gaming purchases
If you're a PlayStation fan, you probably use your credit card for a lot: games, add-ons, the virtually obligatory Plus subscription and the occasional accessory. Wouldn't it be good if you could at least get some compensation for pouring so much money into Sony's coffers? If you live in the US, you can. Sony has launched a Visa-based PlayStation credit card from Capital One that gives you discounts and redeemable points if you shop for Sony gear or PlayStation services.
HSBC app will let you manage accounts from multiple banks
HSBC is readying a mobile app that will allow customers to manage multiple accounts from different banks. "HSBC Beta" will support 21 money-keepers at launch, including Santander, Lloyds and Barclays, so users can review their current account, loans, mortgages and savings simultaneously. It's the first time a major UK bank has offered such a service. In August 2016, the Competition and Markets Authority declared that all banks would need to adopt "Open Banking" by early 2018, allowing this sort of functionality. Clearly, it's made a difference, though HSBC is keen to stress that it was working on the technology before the ruling.
Apple iPad sales grow year-over-year for the first time since 2013
This time of year isn't usually great for Apple's hardware sales, but the company's newly released Q3 earnings has at least one pleasant surprise. In addition to raking in $45.4 billion in revenue over the past three months, Apple also said it sold 41 million iPhones and 11.4 million iPads. That works out to tepid growth of 1.5 percent for iPhones over last year, but the iPads? We're looking at a jump of nearly 15 percent since last August. This also marks the first time iPad sales have grown year-over-year since the halcyon days of 2013. (Yes, Apple's fiscal Q1 2014 earnings showed a yearly lift in iPad sales, thanks to all the iPads sold during the 2013 holiday season.)
PayPal taps into your Chase and Citibank accounts
Paypal-owned mobile payment app Venmo opened up third-party app support last year in an attempt to capture more money via more merchant transactions, including those from Poshmark, Parking Panda, and Delivery.com. The service has a competitor, of course, backed by more than 30 major US banks. Zelle promises easy money transfer between the bank's own apps without having to go through a middleman like Paypal or Facebook Messenger. Two of the banks involved with Zelle, Citibank and Chase, however, have just partnered with Paypal.
