![\"\"](\"https://www.pymnts.com/wp-content/uploads/2024/07/Ce100-performance-0728.jpg\")
Home improvement app Thumbtack has received $70 million in new debt financing.
\nThe funding \u2014 from Silicon Valley Bank (SVB) and Hercules Capital \u2014 will help Thumbtack access new capital and liquidity, the company said in a Wednesday (July 30) news release.\u00a0
\n\u201cWe are one of the fastest growing players in the enormous home services industry, which remains less than 10% online,\u201d said Larry Roseman, Thumbtack\u2019s finance chief.
\n\u201cAnd there is even more opportunity ahead as we fundamentally change how people manage their homes. This financing with our long-term partners at SVB and Hercules strengthens our balance sheet for the next chapter as we become the go-to partner for homeowners all across the U.S.\u201d
\nEarlier this year, Thumbtack debuted its comprehensive home management app, which \u2014 as PYMNTS wrote \u2014 highlights the growing trend of consumers turning to digital tools for tackle do-it-yourself projects and home improvements.
\nPointing to data that nearly 70% of homeowners admit to putting off essential home projects due to feeling overwhelmed, the company stressed that the app provides guidance on what projects to prioritize, when to tackle them and who to hire.
\n\u201cTwo things are true about today\u2019s homeowners: they plan to stay and invest in their homes for decades, yet they delay essential upkeep and value-add improvements because they don\u2019t know where to start,\u201d said Marco Zappacosta, co-founder and CEO of Thumbtack.
\n\u201cThis digitally native generation wants to manage their homes the way they run the rest of their lives \u2014 on their phones. Our all-in-one app brings the support and peace of mind homeowners need.\u201d\u00a0
\nBeyond the individual features and functionalities \u201clies a broader trend reshaping the way consumers interact with their living spaces,\u201d PYMNTS wrote, as the proliferation of smart home devices has ushered in a more interconnected home ecosystem.\u00a0
\nPYMNTS Intelligence research shows the average consumer now owns six such devices, with millennials and bridge millennials leading the way with an average of seven devices each.\u00a0
\n\u201cThe study also highlighted a consistent rise in the adoption of smart home devices and connected appliances,\u201d PYMNTS wrote.
\n\u201cFor instance, ownership of smart refrigerators rose from 5% in 2019 to 9% in 2023, while connected thermostat ownership climbed from 10% to 15% during the same period. These figures underscore the increasing reliance on smart technologies to streamline household tasks and enhance overall living experiences.\u201d
\nThe post Thumbtack Raises $75 Million to Improve Home Improvement App appeared first on PYMNTS.com.
\n", "content_text": "Home improvement app Thumbtack has received $70 million in new debt financing.\nThe funding \u2014 from Silicon Valley Bank (SVB) and Hercules Capital \u2014 will help Thumbtack access new capital and liquidity, the company said in a Wednesday (July 30) news release.\u00a0\n\u201cWe are one of the fastest growing players in the enormous home services industry, which remains less than 10% online,\u201d said Larry Roseman, Thumbtack\u2019s finance chief.\n\u201cAnd there is even more opportunity ahead as we fundamentally change how people manage their homes. This financing with our long-term partners at SVB and Hercules strengthens our balance sheet for the next chapter as we become the go-to partner for homeowners all across the U.S.\u201d\nEarlier this year, Thumbtack debuted its comprehensive home management app, which \u2014 as PYMNTS wrote \u2014 highlights the growing trend of consumers turning to digital tools for tackle do-it-yourself projects and home improvements.\nPointing to data that nearly 70% of homeowners admit to putting off essential home projects due to feeling overwhelmed, the company stressed that the app provides guidance on what projects to prioritize, when to tackle them and who to hire.\n\u201cTwo things are true about today\u2019s homeowners: they plan to stay and invest in their homes for decades, yet they delay essential upkeep and value-add improvements because they don\u2019t know where to start,\u201d said Marco Zappacosta, co-founder and CEO of Thumbtack.\n\u201cThis digitally native generation wants to manage their homes the way they run the rest of their lives \u2014 on their phones. Our all-in-one app brings the support and peace of mind homeowners need.\u201d\u00a0\nBeyond the individual features and functionalities \u201clies a broader trend reshaping the way consumers interact with their living spaces,\u201d PYMNTS wrote, as the proliferation of smart home devices has ushered in a more interconnected home ecosystem.\u00a0\nPYMNTS Intelligence research shows the average consumer now owns six such devices, with millennials and bridge millennials leading the way with an average of seven devices each.\u00a0\n\u201cThe study also highlighted a consistent rise in the adoption of smart home devices and connected appliances,\u201d PYMNTS wrote.\n\u201cFor instance, ownership of smart refrigerators rose from 5% in 2019 to 9% in 2023, while connected thermostat ownership climbed from 10% to 15% during the same period. These figures underscore the increasing reliance on smart technologies to streamline household tasks and enhance overall living experiences.\u201d\nThe post Thumbtack Raises $75 Million to Improve Home Improvement App appeared first on PYMNTS.com.", "date_published": "2024-07-31T16:17:50-04:00", "date_modified": "2024-07-31T16:19:37-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Thumbtack-home-improvement-app.jpg", "tags": [ "Connected Economy", "Hercules Capital", "home care", "home improvement", "home improvement apps", "Investments", "Larry Roseman", "Marco Zappacosta", "News", "PYMNTS News", "silicon valley bank", "smart homes", "Thumbtack", "What's Hot", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2019769", "url": "https://www.pymnts.com/connectedeconomy/2024/delta-plans-legal-action-amid-500-million-hit-from-crowdstrike-outage/", "title": "Delta Plans Legal Action Amid $500 Million Hit From CrowdStrike Outage", "content_html": "Delta Air Lines\u00a0says a recent, and massive, IT outage will cost it $500 million.
\nThat’s according to a\u00a0report\u00a0Wednesday (July 31) from Bloomberg News, citing a statement from the airline that also says Delta has hired a law firm as it prepares to seek damages from the outage, which canceled thousands of flights earlier this month.
\nThe\u00a0$500 million figure\u00a0is in keeping with Wall Street analysts’ estimates from last week, when Delta was still dealing with stranded passengers and the beginnings of a\u00a0Department of Transportation\u00a0investigation into its\u00a0handling of the incident.
\nThe trouble began with a\u00a0glitch in a software update\u00a0by cybersecurity firm\u00a0CrowdStrike, leading to widespread outages of Microsoft’s Windows systems around the world, including at several major corporations, leading to chaos at not only airports but banks and hospitals as well.
\nAs Bloomberg notes, many airlines were able to get back online relatively quickly, while Delta was still dealing with cancellations into the following week.
\nAccording to the report, the company’s extended recovery was due to the fact that the outage impacted an in-house system that processes changes to flights and their crews, which left Delta unable to properly align its crews and its planes.
\nPYMNTS examined the aftermath of the CrowdStrike outage \u2013 and other recent cybersecurity incidents \u2013 last week in a conversation with\u00a0CompoSecure/Arculus\u00a0Chief Product and Innovation Officer\u00a0Adam Lowe.
\nHe noted that when a software update fails, companies typically have contingency plans. But problems with essential security software like CrowdStrike can rapidly escalate, and disruptions to core functions, particularly at the Windows startup level, can be difficult to fix.
\n\u201cCrises can also\u00a0catalyze a shift\u00a0in organizational culture, heightening awareness of cybersecurity issues and encouraging proactive behaviors among employees,\u201d that report noted. \u201cAnd proactive, hyper-aware behavior is crucial in today\u2019s operating landscape where threat actors can move in real-time to activate new vulnerabilities and manipulate unsuspecting end-users.\u201d
\nFor example, cybercriminals have already tried to capitalize on the\u00a0CrowdStrike outage\u00a0by creating fake, malware-infected recovery manuals.
\n\u201cCrowdStrike Intelligence identified a Word document containing macros that download an unidentified stealer now tracked as Daolpu,\u201d the company warned on its blog. \u201cThe document impersonates a Microsoft recovery manual. Initial analysis suggests the activity is likely criminal.\u201d
\nThe post Delta Plans Legal Action Amid $500 Million Hit From CrowdStrike Outage appeared first on PYMNTS.com.
\n", "content_text": "Delta Air Lines\u00a0says a recent, and massive, IT outage will cost it $500 million.\nThat’s according to a\u00a0report\u00a0Wednesday (July 31) from Bloomberg News, citing a statement from the airline that also says Delta has hired a law firm as it prepares to seek damages from the outage, which canceled thousands of flights earlier this month.\nThe\u00a0$500 million figure\u00a0is in keeping with Wall Street analysts’ estimates from last week, when Delta was still dealing with stranded passengers and the beginnings of a\u00a0Department of Transportation\u00a0investigation into its\u00a0handling of the incident.\nThe trouble began with a\u00a0glitch in a software update\u00a0by cybersecurity firm\u00a0CrowdStrike, leading to widespread outages of Microsoft’s Windows systems around the world, including at several major corporations, leading to chaos at not only airports but banks and hospitals as well.\nAs Bloomberg notes, many airlines were able to get back online relatively quickly, while Delta was still dealing with cancellations into the following week.\nAccording to the report, the company’s extended recovery was due to the fact that the outage impacted an in-house system that processes changes to flights and their crews, which left Delta unable to properly align its crews and its planes.\nPYMNTS examined the aftermath of the CrowdStrike outage \u2013 and other recent cybersecurity incidents \u2013 last week in a conversation with\u00a0CompoSecure/Arculus\u00a0Chief Product and Innovation Officer\u00a0Adam Lowe.\nHe noted that when a software update fails, companies typically have contingency plans. But problems with essential security software like CrowdStrike can rapidly escalate, and disruptions to core functions, particularly at the Windows startup level, can be difficult to fix.\n\u201cCrises can also\u00a0catalyze a shift\u00a0in organizational culture, heightening awareness of cybersecurity issues and encouraging proactive behaviors among employees,\u201d that report noted. \u201cAnd proactive, hyper-aware behavior is crucial in today\u2019s operating landscape where threat actors can move in real-time to activate new vulnerabilities and manipulate unsuspecting end-users.\u201d\nFor example, cybercriminals have already tried to capitalize on the\u00a0CrowdStrike outage\u00a0by creating fake, malware-infected recovery manuals.\n\u201cCrowdStrike Intelligence identified a Word document containing macros that download an unidentified stealer now tracked as Daolpu,\u201d the company warned on its blog. \u201cThe document impersonates a Microsoft recovery manual. Initial analysis suggests the activity is likely criminal.\u201d\nThe post Delta Plans Legal Action Amid $500 Million Hit From CrowdStrike Outage appeared first on PYMNTS.com.", "date_published": "2024-07-31T11:06:32-04:00", "date_modified": "2024-07-31T11:06:32-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/09/delta-air-lines.jpg", "tags": [ "air travel", "airlines", "CrowdStrike", "Crowdstrike outage", "Cybersecurity", "Delta Air Lines", "legal", "News", "PYMNTS News", "travel", "What's Hot", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2017948", "url": "https://www.pymnts.com/connectedeconomy/2024/ce-100-index-gains-0-4-as-coursera-jumps-on-earnings/", "title": "CE 100 Index Gains 0.4% as Coursera Jumps on Earnings", "content_html": "Excitement over artificial intelligence (AI) helped drive Coursera shares (and results) significantly higher this past week, while earnings began to trickle in for the CE 100 Index \u2014 and the deluge of quarterly reports begins in earnest.
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Coursera shares leaped 49%, leading the Work segment 2.7% higher.
\nThe earnings results showed the company surpassed more than 2 million enrollments in its generative AI catalog. Total revenue was $170.3 million, up 11% from $153.7 million a year ago. Consumer revenue was $97.3 million, up 12% year over year, driven in part by generative AI credentials.
\nEnterprise revenue was $58.7 million, up 8% from a year ago. The company said that the total number of paid enterprise customers increased to 1,511, up 17% from a year ago.
\nOcado shares rose by 17.6%. During the company\u2019s most recent earnings report, Ocado CEO Tim Steiner said his company is benefiting from a resumption in online grocery buying. The company\u2019s half-year report released earlier in the month noted that group revenues were up 13% to \u00a31.5 billion, while technology solutions revenues gained 22%, and Ocado retail sales gathered 11%.
\nElsewhere, and as reported by Reuters, U.S. partner Kroger has placed an order for Ocado\u2019s On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL), to be used in multiple warehouses.
\nVisa shares gathered 4.5% in the Pay and Be Paid segment, which lost 2.2% overall. As reported this past week, contactless payments were a key highlight in the company\u2019s earnings call last week.
\nCEO Ryan McInerney said on the conference call with analysts that tap to pay grew 4 percentage points from last year to 80% of face-to-face transactions globally, excluding the U.S. More than 55 countries have seen more than 90% contactless penetration, he said, in response to analysts\u2019 questions. In the U.S., tap to pay has been tied to more than 50% of in-person commerce transactions, and 30 cities have seen more than 60% penetration.
\nThe company passed the 10 billion token mark this quarter, according to the CEO\u2019s commentary, and the tokens helped generate an estimated $40 billion in incremental eCommerce revenue and prevented an estimated $600 million in fraud.
\nRevenues from new payment flows, he said, grew by 18% year over year. Visa Direct transactions grew by 41% over the same time.
\nIn the U.S., payments volumes were 4% higher, with debit up 4% and credit up 3% year over year.
\nCrowdStrike continued to decline, down about 17%. In a report released by the company, CrowdStrike says a glitch in test software led to last week\u2019s massive IT outage.
\nThe report also outlines what CrowdStrike aims to do to prevent the problem from recurring, such as implementing \u201ca staggered deployment strategy for Rapid Response Content in which updates are gradually deployed to larger portions of the sensor base,\u201d while also giving customers more control over the delivery of these updates, letting them choose when and where they are deployed.
\nBlock shares lost 11.6%. The company said this week in a posting that it will shutter Cash App UK in mid-September.
\n\u201cIn recent months, we have outlined our strategic approach for Cash App, which prioritizes our focus on the United States, and deprioritizes global expansion. All of our operations remain unaffected by this decision,\u201d as noted in the posting.
\n\n
The post CE 100 Index Gains 0.4% as Coursera Jumps on Earnings appeared first on PYMNTS.com.
\n", "content_text": "Excitement over artificial intelligence (AI) helped drive Coursera shares (and results) significantly higher this past week, while earnings began to trickle in for the CE 100 Index \u2014 and the deluge of quarterly reports begins in earnest.\n\n \n \nCoursera shares leaped 49%, leading the Work segment 2.7% higher.\nThe earnings results showed the company surpassed more than 2 million enrollments in its generative AI catalog. Total revenue was $170.3 million, up 11% from $153.7 million a year ago. Consumer revenue was $97.3 million, up 12% year over year, driven in part by generative AI credentials.\nEnterprise revenue was $58.7 million, up 8% from a year ago. The company said that the total number of paid enterprise customers increased to 1,511, up 17% from a year ago. \nOcado Gains\nOcado shares rose by 17.6%. During the company\u2019s most recent earnings report, Ocado CEO Tim Steiner said his company is benefiting from a resumption in online grocery buying. The company\u2019s half-year report released earlier in the month noted that group revenues were up 13% to \u00a31.5 billion, while technology solutions revenues gained 22%, and Ocado retail sales gathered 11%.\nElsewhere, and as reported by Reuters, U.S. partner Kroger has placed an order for Ocado\u2019s On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL), to be used in multiple warehouses.\nVisa Spotlights Contactless Payments\nVisa shares gathered 4.5% in the Pay and Be Paid segment, which lost 2.2% overall. As reported this past week, contactless payments were a key highlight in the company\u2019s earnings call last week.\nCEO Ryan McInerney said on the conference call with analysts that tap to pay grew 4 percentage points from last year to 80% of face-to-face transactions globally, excluding the U.S. More than 55 countries have seen more than 90% contactless penetration, he said, in response to analysts\u2019 questions. In the U.S., tap to pay has been tied to more than 50% of in-person commerce transactions, and 30 cities have seen more than 60% penetration. \nThe company passed the 10 billion token mark this quarter, according to the CEO\u2019s commentary, and the tokens helped generate an estimated $40 billion in incremental eCommerce revenue and prevented an estimated $600 million in fraud.\nRevenues from new payment flows, he said, grew by 18% year over year. Visa Direct transactions grew by 41% over the same time.\nIn the U.S., payments volumes were 4% higher, with debit up 4% and credit up 3% year over year.\nCrowdStrike Continues Slide\nCrowdStrike continued to decline, down about 17%. In a report released by the company, CrowdStrike says a glitch in test software led to last week\u2019s massive IT outage.\nThe report also outlines what CrowdStrike aims to do to prevent the problem from recurring, such as implementing \u201ca staggered deployment strategy for Rapid Response Content in which updates are gradually deployed to larger portions of the sensor base,\u201d while also giving customers more control over the delivery of these updates, letting them choose when and where they are deployed.\nBlock shares lost 11.6%. The company said this week in a posting that it will shutter Cash App UK in mid-September.\n\u201cIn recent months, we have outlined our strategic approach for Cash App, which prioritizes our focus on the United States, and deprioritizes global expansion. All of our operations remain unaffected by this decision,\u201d as noted in the posting.\n \nThe post CE 100 Index Gains 0.4% as Coursera Jumps on Earnings appeared first on PYMNTS.com.", "date_published": "2024-07-29T04:00:09-04:00", "date_modified": "2024-07-28T21:21:26-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/CE100-0729.jpg", "tags": [ "Block", "CE 100 Index", "Connected Economy", "Coursera", "CrowdStrike", "Featured News", "News", "Ocado", "PYMNTS News", "Visa", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2016223", "url": "https://www.pymnts.com/connectedeconomy/2024/crisis-as-catalyst-what-att-crowdstrike-incidents-say-about-recovery-best-practices/", "title": "Crisis as Catalyst: What AT&T, CrowdStrike Incidents Say About Recovery Best Practices", "content_html": "Never let a crisis go to waste, as the adage goes.
\nAnd when it comes to cybersecurity best practices and procedures, recent digital disruptions \u2014 from CrowdStrike\u2019s Microsoft outage\u00a0to AT&T and beyond \u2014 can teach enterprises a lot\u00a0about fortifying their defenses and recovery plans.
\nAfter all, it was just Monday (July 22) that the Federal Communications Commission (FCC) released its report criticizing AT&T\u2019s role and response in a February outage that blocked 92 million calls, including over 25,000 attempts to reach 911.
\nIt ultimately took over 12 hours for AT&T to fully restore service. The outage affected all 50 states as well as Washington, D.C., and other domestic territories like Puerto Rico and the U.S. Virgin Islands. It was caused by a botched update related to a network expansion.
\nSound familiar? A software update was what led to the CrowdStrike crash last Friday (July 19) which affected 8.5 million Windows machines around the world,\u00a0leading to chaos\u00a0at banks, airports and hospitals.
\nThat\u2019s why, in today\u2019s interconnected world, where digital disruptions are, unfortunately, increasingly common, the ability to learn from and adapt to these challenges is crucial for long-term business success.
\nRead more: CrowdStrike Outage Rolls On; Attention Turns to Software Update Quality Control
\nPer the FCC\u2019s report on AT&T\u2019s February outage \u2014 and not its July cyberattack \u2014 factors behind the \u201cextensive scope and duration\u201d of the outage included \u201ca configuration error, a lack of adherence to AT&T Mobility\u2019s internal procedures, a lack of peer review, a failure to adequately test after installation, inadequate laboratory testing, insufficient safeguards and controls to ensure approval of changes affecting the core network, a lack of controls to mitigate the effects of the outage once it began, and a variety of system issues that prolonged the outage once the configuration error had been remedied.\u201d
\nIn other words, a cascading failure to follow proper procedures across key workflows.
\nWhile the immediate cause of the outage was an employee who misconfigured a lone network element, adequate peer review should have prevented the change from being approved, the FCC emphasized.
\nIn an interview with PYMNTS Friday,\u00a0CompoSecure/Arculus\u00a0Chief Product and Innovation Officer\u00a0Adam Lowe\u00a0noted that when a software update fails, companies usually have contingency plans. But issues with essential security software like CrowdStrike\u00a0can quickly escalate, and disruptions to core functions, especially at the Windows startup level, can be difficult to correct.
\nPost-incident reviews and analyses help refine incident response plans, making future responses more efficient and effective. This continuous improvement process is vital for maintaining a strong security posture.
\nSee also: Businesses Scramble for Backup After CrowdStrike Update Hobbles IT Networks
\nCrises can also catalyze a shift in organizational culture, heightening awareness of cybersecurity issues and encouraging proactive behaviors among employees.
\nAnd proactive, hyper-aware behavior is crucial in today\u2019s operating landscape where threat actors can move in real-time to activate new vulnerabilities and manipulate unsuspecting end-users.
\nAs just one example, cybercriminals have already jumped on the CrowdStrike outage by developing fake, malware-infected recovery manuals.
\nAccording to a Monday blog post by CrowdStrike, \u201cCrowdStrike Intelligence identified a Word document containing macros that download an unidentified stealer now tracked as\u00a0Daolpu. The document impersonates a Microsoft recovery manual. Initial analysis suggests the activity is likely criminal.\u201d
\nCrowdStrike Intelligence has also monitored other malicious activity leveraging the event as a lure theme, with the company saying it had received reports that threat actors are conducting activities such as sending phishing emails posing as CrowdStrike support to customers; impersonating CrowdStrike staff in phone calls; posing as independent researchers, claiming to have evidence the technical issue is linked to a cyberattack and offering remediation insights; as well as selling scripts purporting to automate recovery from the content update issue.
\nAt the same time, there has been a surge in \u201ctyposquatting domains\u201d now being registered to exploit the CrowdStrike\u00a0outage. Typosquatting is when bad actors set up domain names that appear to be legitimate in order to lure genuine users but have small typos and lead to malicious cyber infections.
\nFor example, some domains already flagged as malicious include crowdstrikefix[.]com; crowdstrike-helpdesk[.]com; and crowdstrikebsod[.]com.
\nThat\u2019s why employee training should cover best practices for password management, recognizing phishing attempts and reporting suspicious activities.
\nThe post Crisis as Catalyst: What AT&T, CrowdStrike Incidents Say About Recovery Best Practices appeared first on PYMNTS.com.
\n", "content_text": "Never let a crisis go to waste, as the adage goes.\nAnd when it comes to cybersecurity best practices and procedures, recent digital disruptions \u2014 from CrowdStrike\u2019s Microsoft outage\u00a0to AT&T and beyond \u2014 can teach enterprises a lot\u00a0about fortifying their defenses and recovery plans.\nAfter all, it was just Monday (July 22) that the Federal Communications Commission (FCC) released its report criticizing AT&T\u2019s role and response in a February outage that blocked 92 million calls, including over 25,000 attempts to reach 911.\nIt ultimately took over 12 hours for AT&T to fully restore service. The outage affected all 50 states as well as Washington, D.C., and other domestic territories like Puerto Rico and the U.S. Virgin Islands. It was caused by a botched update related to a network expansion.\nSound familiar? A software update was what led to the CrowdStrike crash last Friday (July 19) which affected 8.5 million Windows machines around the world,\u00a0leading to chaos\u00a0at banks, airports and hospitals.\nThat\u2019s why, in today\u2019s interconnected world, where digital disruptions are, unfortunately, increasingly common, the ability to learn from and adapt to these challenges is crucial for long-term business success.\nRead more: CrowdStrike Outage Rolls On; Attention Turns to Software Update Quality Control\nEmbracing Best Practices Derived From Recent Incidents\nPer the FCC\u2019s report on AT&T\u2019s February outage \u2014 and not its July cyberattack \u2014 factors behind the \u201cextensive scope and duration\u201d of the outage included \u201ca configuration error, a lack of adherence to AT&T Mobility\u2019s internal procedures, a lack of peer review, a failure to adequately test after installation, inadequate laboratory testing, insufficient safeguards and controls to ensure approval of changes affecting the core network, a lack of controls to mitigate the effects of the outage once it began, and a variety of system issues that prolonged the outage once the configuration error had been remedied.\u201d\nIn other words, a cascading failure to follow proper procedures across key workflows.\nWhile the immediate cause of the outage was an employee who misconfigured a lone network element, adequate peer review should have prevented the change from being approved, the FCC emphasized.\nIn an interview with PYMNTS Friday,\u00a0CompoSecure/Arculus\u00a0Chief Product and Innovation Officer\u00a0Adam Lowe\u00a0noted that when a software update fails, companies usually have contingency plans. But issues with essential security software like CrowdStrike\u00a0can quickly escalate, and disruptions to core functions, especially at the Windows startup level, can be difficult to correct.\nPost-incident reviews and analyses help refine incident response plans, making future responses more efficient and effective. This continuous improvement process is vital for maintaining a strong security posture.\nSee also: Businesses Scramble for Backup After CrowdStrike Update Hobbles IT Networks\nCrises can also catalyze a shift in organizational culture, heightening awareness of cybersecurity issues and encouraging proactive behaviors among employees.\nAnd proactive, hyper-aware behavior is crucial in today\u2019s operating landscape where threat actors can move in real-time to activate new vulnerabilities and manipulate unsuspecting end-users.\nAs just one example, cybercriminals have already jumped on the CrowdStrike outage by developing fake, malware-infected recovery manuals.\nAccording to a Monday blog post by CrowdStrike, \u201cCrowdStrike Intelligence identified a Word document containing macros that download an unidentified stealer now tracked as\u00a0Daolpu. The document impersonates a Microsoft recovery manual. Initial analysis suggests the activity is likely criminal.\u201d\nCrowdStrike Intelligence has also monitored other malicious activity leveraging the event as a lure theme, with the company saying it had received reports that threat actors are conducting activities such as sending phishing emails posing as CrowdStrike support to customers; impersonating CrowdStrike staff in phone calls; posing as independent researchers, claiming to have evidence the technical issue is linked to a cyberattack and offering remediation insights; as well as selling scripts purporting to automate recovery from the content update issue.\nAt the same time, there has been a surge in \u201ctyposquatting domains\u201d now being registered to exploit the CrowdStrike\u00a0outage. Typosquatting is when bad actors set up domain names that appear to be legitimate in order to lure genuine users but have small typos and lead to malicious cyber infections.\nFor example, some domains already flagged as malicious include crowdstrikefix[.]com; crowdstrike-helpdesk[.]com; and crowdstrikebsod[.]com.\nThat\u2019s why employee training should cover best practices for password management, recognizing phishing attempts and reporting suspicious activities.\nThe post Crisis as Catalyst: What AT&T, CrowdStrike Incidents Say About Recovery Best Practices appeared first on PYMNTS.com.", "date_published": "2024-07-24T16:33:10-04:00", "date_modified": "2024-07-25T22:06:46-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/CrowdStrike.jpg", "tags": [ "AT&T", "B2B", "B2B Payments", "commercial payments", "Connected Economy", "CrowdStrike", "Cybersecurity", "digital disruptions", "FCC", "Federal Communications Commission", "fraud", "Microsoft", "News", "PYMNTS News", "Security", "Technology", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2016134", "url": "https://www.pymnts.com/connectedeconomy/2024/delta-reportedly-facing-500-million-loss-from-crowdstrike-outage/", "title": "Delta Reportedly Facing $500 Million Loss From CrowdStrike Outage", "content_html": "Delta Air Lines\u00a0is reportedly facing a half-billion dollar hit after last week\u2019s IT outage.
\nThe air carrier on Wednesday (July 24) was still recovering from last week\u2019s incident, in which a\u00a0software glitch\u00a0at cybersecurity firm\u00a0CrowdStrike\u00a0brought down millions of computers running Microsoft Windows.
\nAccording to Bloomberg News, analysts at Citigroup\u00a0lowered estimates\u00a0for Delta\u2019s third-quarter adjusted earnings by 60 cents a share in a new report to $1.37, citing \u201coperational expenses and potential customer compensation costs\u201d after the outage. In addition, analyst Stephen Trent also reduced two profit metrics by about $500 million each.
\nBloomberg notes that Delta had impacted more by the outage compared to other airlines, which had its systems online during the weekend. Delta, which had canceled more than 5,400 flights due to the outage, said it plans to have operations back to normal by Thursday (July 25).
\nThe report also cites a note from Conor Cunningham of Melius Research, who estimated a $350 million impact to operating profit plus a possible fine from the Department of Transportation, which is\u00a0investigating Delta\u2019s handling\u00a0of the outage.
\n\u201cWhat is more uncertain is the reputational damage Delta\u2019s image may take given the operational issue,\u201d Cunningham wrote. \u201cIt is certainly plausible that forward bookings are impacted.\u201d
\nCrowdStrike on Wednesday issued a report outlining the\u00a0circumstances\u00a0behind the outage last Friday (July 19), which resulted in chaos at not just airports but banks, hospitals and other entities as well.
\n\u201cCrowdStrike delivers security content configuration updates to our sensors in two ways: Sensor Content that is shipped with our sensor directly, and Rapid Response Content that is designed to respond to the changing threat landscape at operational speed,\u201d the report said. \u201cThe issue on Friday involved a Rapid Response Content update with an undetected error.\u201d
\nThe report also discusses how CrowdStrike plans to prevent the future outages, such as implementing \u201ca staggered deployment strategy for Rapid Response Content in which updates are gradually deployed to larger portions of the sensor base,\u201d while also giving its clients greater control over the delivery of these updates, letting them pick when/where they are deployed.
\nAs PYMNTS wrote last week, the incident has shone a\u00a0spotlight on software updates. In an interview here on the day of the outage, CompoSecure/Arculus Chief Product and Innovation Officer Adam Lowe noted that when a software update fails, companies tend to have contingency plans.
\n\u201cBut issues with essential security software like CrowdStrike can quickly escalate, and disruptions to core functions, especially at the Windows startup level, can be difficult to correct,\u201d PYMNTS wrote.
\nThe post Delta Reportedly Facing $500 Million Loss From CrowdStrike Outage appeared first on PYMNTS.com.
\n", "content_text": "Delta Air Lines\u00a0is reportedly facing a half-billion dollar hit after last week\u2019s IT outage.\nThe air carrier on Wednesday (July 24) was still recovering from last week\u2019s incident, in which a\u00a0software glitch\u00a0at cybersecurity firm\u00a0CrowdStrike\u00a0brought down millions of computers running Microsoft Windows.\nAccording to Bloomberg News, analysts at Citigroup\u00a0lowered estimates\u00a0for Delta\u2019s third-quarter adjusted earnings by 60 cents a share in a new report to $1.37, citing \u201coperational expenses and potential customer compensation costs\u201d after the outage. In addition, analyst Stephen Trent also reduced two profit metrics by about $500 million each.\nBloomberg notes that Delta had impacted more by the outage compared to other airlines, which had its systems online during the weekend. Delta, which had canceled more than 5,400 flights due to the outage, said it plans to have operations back to normal by Thursday (July 25).\nThe report also cites a note from Conor Cunningham of Melius Research, who estimated a $350 million impact to operating profit plus a possible fine from the Department of Transportation, which is\u00a0investigating Delta\u2019s handling\u00a0of the outage.\n\u201cWhat is more uncertain is the reputational damage Delta\u2019s image may take given the operational issue,\u201d Cunningham wrote. \u201cIt is certainly plausible that forward bookings are impacted.\u201d\nCrowdStrike on Wednesday issued a report outlining the\u00a0circumstances\u00a0behind the outage last Friday (July 19), which resulted in chaos at not just airports but banks, hospitals and other entities as well.\n\u201cCrowdStrike delivers security content configuration updates to our sensors in two ways: Sensor Content that is shipped with our sensor directly, and Rapid Response Content that is designed to respond to the changing threat landscape at operational speed,\u201d the report said. \u201cThe issue on Friday involved a Rapid Response Content update with an undetected error.\u201d\nThe report also discusses how CrowdStrike plans to prevent the future outages, such as implementing \u201ca staggered deployment strategy for Rapid Response Content in which updates are gradually deployed to larger portions of the sensor base,\u201d while also giving its clients greater control over the delivery of these updates, letting them pick when/where they are deployed.\nAs PYMNTS wrote last week, the incident has shone a\u00a0spotlight on software updates. In an interview here on the day of the outage, CompoSecure/Arculus Chief Product and Innovation Officer Adam Lowe noted that when a software update fails, companies tend to have contingency plans.\n\u201cBut issues with essential security software like CrowdStrike can quickly escalate, and disruptions to core functions, especially at the Windows startup level, can be difficult to correct,\u201d PYMNTS wrote.\nThe post Delta Reportedly Facing $500 Million Loss From CrowdStrike Outage appeared first on PYMNTS.com.", "date_published": "2024-07-24T15:03:52-04:00", "date_modified": "2024-07-24T15:03:52-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/09/delta-air-lines.jpg", "tags": [ "air travel", "airlines", "CrowdStrike", "Crowdstrike outage", "Cybersecurity", "Delta", "Delta Air Lines", "Department of Transportation", "Microsoft", "News", "PYMNTS News", "Security", "software", "travel", "What's Hot", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2015634", "url": "https://www.pymnts.com/connectedeconomy/2024/crowdstrike-content-update-glitch-caused-worldwide-it-crash/", "title": "CrowdStrike: Content Update Glitch Caused Worldwide IT Crash", "content_html": "CrowdStrike\u00a0says a glitch in test software led to last week\u2019s massive IT outage.
\nThe cybersecurity company\u00a0released a report\u00a0Wednesday (July 24), five days after a crash affected 8.5 million Windows machines around the world,\u00a0leading to chaos\u00a0at banks, airports and hospitals.
\n\u201cCrowdStrike delivers security content configuration updates to our sensors in two ways: Sensor Content that is shipped with our sensor directly, and Rapid Response Content that is designed to respond to the changing threat landscape at operational speed,\u201d the report said. \u201cThe issue on Friday involved a Rapid Response Content update with an undetected error.\u201d
\nThe report also outlines what CrowdStrike aims to do to prevent the problem from recurring, such as implementing \u201ca staggered deployment strategy for Rapid Response Content in which updates are gradually deployed to larger portions of the sensor base,\u201d while also giving customers more control over the delivery of these updates, letting them choose when and where they are deployed.
\nAs PYMNTS wrote last week, the incident has shone a spotlight on software updates. In an interview here Friday (July 19),\u00a0CompoSecure/Arculus\u00a0Chief Product and Innovation Officer\u00a0Adam Lowe\u00a0noted that when a software update fails, companies usually have contingency plans.
\nBut issues with essential security software like CrowdStrike\u00a0can quickly escalate, and disruptions to core functions, especially at the Windows startup level, can be difficult to correct.
\n\u201cIn such cases, it may necessitate a complete system reinstallation from a prior backup, akin to wiping a hard drive and starting anew,\u201d that report said. \u201cThis process is both complex and time-consuming, especially for systems that are locked out at startup, leaving limited options for a swift resolution.\u201d
\nMeanwhile, PYMNTS discussed the crash earlier this week with\u00a0Finexio\u00a0CEO\u00a0Ernest Rolfson, who stressed the importance of quality control in software updates.
\nRolfson said he was\u00a0taken aback\u00a0by the timing of a recent software update from a Finexio partner, rolled out in the morning and during the workweek.
\n\u201cTypically, updates are scheduled after hours or on weekends to minimize disruptions, given the fact that best practices suggest staggering the release to avoid widespread issues if problems arise,\u201d PYMNTS wrote.
\nMeanwhile, the fallout from the outage continues, with the\u00a0Department of Transportation\u00a0launching an investigation\u00a0into Delta Air Lines\u2019 handling of the incident, and two members of the House Homeland Security Committee\u00a0calling on CrowdStrike\u2019s CEO\u00a0to testify about the crash.
\nThe post CrowdStrike: Content Update Glitch Caused Worldwide IT Crash appeared first on PYMNTS.com.
\n", "content_text": "CrowdStrike\u00a0says a glitch in test software led to last week\u2019s massive IT outage.\nThe cybersecurity company\u00a0released a report\u00a0Wednesday (July 24), five days after a crash affected 8.5 million Windows machines around the world,\u00a0leading to chaos\u00a0at banks, airports and hospitals.\n\u201cCrowdStrike delivers security content configuration updates to our sensors in two ways: Sensor Content that is shipped with our sensor directly, and Rapid Response Content that is designed to respond to the changing threat landscape at operational speed,\u201d the report said. \u201cThe issue on Friday involved a Rapid Response Content update with an undetected error.\u201d\nThe report also outlines what CrowdStrike aims to do to prevent the problem from recurring, such as implementing \u201ca staggered deployment strategy for Rapid Response Content in which updates are gradually deployed to larger portions of the sensor base,\u201d while also giving customers more control over the delivery of these updates, letting them choose when and where they are deployed.\nAs PYMNTS wrote last week, the incident has shone a spotlight on software updates. In an interview here Friday (July 19),\u00a0CompoSecure/Arculus\u00a0Chief Product and Innovation Officer\u00a0Adam Lowe\u00a0noted that when a software update fails, companies usually have contingency plans.\nBut issues with essential security software like CrowdStrike\u00a0can quickly escalate, and disruptions to core functions, especially at the Windows startup level, can be difficult to correct.\n\u201cIn such cases, it may necessitate a complete system reinstallation from a prior backup, akin to wiping a hard drive and starting anew,\u201d that report said. \u201cThis process is both complex and time-consuming, especially for systems that are locked out at startup, leaving limited options for a swift resolution.\u201d\nMeanwhile, PYMNTS discussed the crash earlier this week with\u00a0Finexio\u00a0CEO\u00a0Ernest Rolfson, who stressed the importance of quality control in software updates.\nRolfson said he was\u00a0taken aback\u00a0by the timing of a recent software update from a Finexio partner, rolled out in the morning and during the workweek.\n\u201cTypically, updates are scheduled after hours or on weekends to minimize disruptions, given the fact that best practices suggest staggering the release to avoid widespread issues if problems arise,\u201d PYMNTS wrote.\nMeanwhile, the fallout from the outage continues, with the\u00a0Department of Transportation\u00a0launching an investigation\u00a0into Delta Air Lines\u2019 handling of the incident, and two members of the House Homeland Security Committee\u00a0calling on CrowdStrike\u2019s CEO\u00a0to testify about the crash.\nThe post CrowdStrike: Content Update Glitch Caused Worldwide IT Crash appeared first on PYMNTS.com.", "date_published": "2024-07-24T08:34:21-04:00", "date_modified": "2024-07-24T08:34:21-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/02/Crowdstrike-Cybersecurity.jpg", "tags": [ "CrowdStrike", "Crowdstrike outage", "Cybersecurity", "Microsoft", "News", "PYMNTS News", "Security", "software", "travel", "What's Hot", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2015659", "url": "https://www.pymnts.com/connectedeconomy/2024/commerce-department-to-release-rules-on-connected-vehicles/", "title": "Commerce Department to Release Rules on Connected Vehicles", "content_html": "The U.S. Commerce Department plans to unveil proposed regulations next month concerning connected vehicles, with a specific focus on critical software components manufactured in China and other nations deemed as adversaries.
\nAlan Estevez, the department\u2019s export controls chief, announced last week that the rules will target components responsible for managing vehicle software and data, requiring them to originate from allied countries.
\nThis regulatory initiative follows Commerce Secretary Gina Raimondo\u2019s May announcement of forthcoming rules specifically addressing Chinese-linked vehicles, to be published later this year. Raimondo indicated that the Biden administration could take drastic measures, such as banning Chinese-connected vehicles or imposing restrictions, following a probe initiated in February into potential national security risks posed by Chinese vehicle imports.
\nEstevez\u2019s remarks at a forum in Colorado represent the clearest indication to date of the administration\u2019s stance on Chinese vehicles, which have raised significant concerns. He underscored the seriousness of the cybersecurity threat, noting that modern vehicles, equipped with sophisticated software and network infrastructure, gather extensive user data, posing vulnerabilities to security breaches.
\nConnected vehicles, equipped with integrated network hardware enabling internet connectivity, have the capability to exchange data with both internal and external devices. Estevez emphasized these risks, stating, \u201cA car is formidable. Your vehicle gathers a wealth of information about you, from software updates to driving habits, connectivity to personal devices and location tracking.\u201d
\nIn response to potential U.S. actions, the Chinese foreign ministry urged adherence to market economy laws and fair competition principles, asserting the global popularity of Chinese cars driven by technological innovation and robust market competition.
\nIn her May remarks, Raimondo warned of potential catastrophic consequences if software in millions of connected vehicles were compromised. Despite relatively low imports of Chinese-made light-duty vehicles, the Biden administration has proposed substantial tariff hikes on Chinese electric vehicles and other goods, set to be implemented by Aug. 1.
\nLooking forward, the Automotive Edge Computing Consortium (AECC) forecasts that by 2025, global connected vehicle numbers will reach approximately 100 million, with data transmissions between vehicles and the cloud totaling about 10 exabytes per month \u2014 equivalent to 10 billion gigabytes.
\nAccording to a 2021 white paper titled, \u201cDistributed Computing in an AECC System,\u201d the AECC outlined best practices for distributed computing to manage the substantial data volumes associated with connected vehicles. Notable members of the AECC board include Toyota, Intel, Ericsson, Denso, Samsung, Dell-EMC, Nippon Telegraph and Telephone (NTT) and KDDI Research.
\nThe report emphasized the unique challenges posed by connected vehicles.
\n\u201cFor connected vehicles, the amount of uploaded data is massive, concentrated (in time and location) and often time sensitive,\u201d the report said.
\nIn contrast to conventional consumer mobility services, which predominantly involve data flowing from providers to consumers, connected vehicles primarily transmit data to service providers. This operational dynamic underscores the critical need for distributed computing capabilities within AECC systems to uphold optimal service standards, particularly those intricately tied to vehicle functionalities, per the report.
\nPrivacy has always been a key issue as the topic of connected vehicles picks up steam.
\nRevelations in a New York Times report highlight a troubling reality for drivers: detailed records of every trip, including speed and abrupt braking, are meticulously logged by data brokers.
\nThis insight into the thorough monitoring of driving behavior highlights a broader concern among consumers about the privacy of their data in the era of connected cars.
\nThese internet-enabled vehicles, equipped with advanced features such as GPS navigation systems, cameras and sensors, heavily rely on the collection and transmission of extensive data.
\nWhile this data access has undeniably enhanced overall driving experiences \u2014 improving safety, traffic management, payment efficiency and offering personalized entertainment options \u2014 the practice of automakers sharing driving data with third parties, particularly insurance companies, has sparked heated debate.
\nAdvocates, such as data brokers like LexisNexis, argue that personalized insurance premiums based on driving behavior could incentivize safer practices and potentially lower rates. Critics, however, have voiced concerns about potential data misuse and exploitation.
\nThe post Commerce Department to Release Rules on Connected Vehicles appeared first on PYMNTS.com.
\n", "content_text": "The U.S. Commerce Department plans to unveil proposed regulations next month concerning connected vehicles, with a specific focus on critical software components manufactured in China and other nations deemed as adversaries.\nAlan Estevez, the department\u2019s export controls chief, announced last week that the rules will target components responsible for managing vehicle software and data, requiring them to originate from allied countries.\nThis regulatory initiative follows Commerce Secretary Gina Raimondo\u2019s May announcement of forthcoming rules specifically addressing Chinese-linked vehicles, to be published later this year. Raimondo indicated that the Biden administration could take drastic measures, such as banning Chinese-connected vehicles or imposing restrictions, following a probe initiated in February into potential national security risks posed by Chinese vehicle imports.\nEstevez\u2019s remarks at a forum in Colorado represent the clearest indication to date of the administration\u2019s stance on Chinese vehicles, which have raised significant concerns. He underscored the seriousness of the cybersecurity threat, noting that modern vehicles, equipped with sophisticated software and network infrastructure, gather extensive user data, posing vulnerabilities to security breaches.\nConnecting the Data\nConnected vehicles, equipped with integrated network hardware enabling internet connectivity, have the capability to exchange data with both internal and external devices. Estevez emphasized these risks, stating, \u201cA car is formidable. Your vehicle gathers a wealth of information about you, from software updates to driving habits, connectivity to personal devices and location tracking.\u201d\nIn response to potential U.S. actions, the Chinese foreign ministry urged adherence to market economy laws and fair competition principles, asserting the global popularity of Chinese cars driven by technological innovation and robust market competition.\nIn her May remarks, Raimondo warned of potential catastrophic consequences if software in millions of connected vehicles were compromised. Despite relatively low imports of Chinese-made light-duty vehicles, the Biden administration has proposed substantial tariff hikes on Chinese electric vehicles and other goods, set to be implemented by Aug. 1.\nThe Connected Car Economy\nLooking forward, the Automotive Edge Computing Consortium (AECC) forecasts that by 2025, global connected vehicle numbers will reach approximately 100 million, with data transmissions between vehicles and the cloud totaling about 10 exabytes per month \u2014 equivalent to 10 billion gigabytes.\nAccording to a 2021 white paper titled, \u201cDistributed Computing in an AECC System,\u201d the AECC outlined best practices for distributed computing to manage the substantial data volumes associated with connected vehicles. Notable members of the AECC board include Toyota, Intel, Ericsson, Denso, Samsung, Dell-EMC, Nippon Telegraph and Telephone (NTT) and KDDI Research.\nThe report emphasized the unique challenges posed by connected vehicles.\n\u201cFor connected vehicles, the amount of uploaded data is massive, concentrated (in time and location) and often time sensitive,\u201d the report said.\nIn contrast to conventional consumer mobility services, which predominantly involve data flowing from providers to consumers, connected vehicles primarily transmit data to service providers. This operational dynamic underscores the critical need for distributed computing capabilities within AECC systems to uphold optimal service standards, particularly those intricately tied to vehicle functionalities, per the report.\nData Privacy\nPrivacy has always been a key issue as the topic of connected vehicles picks up steam.\nRevelations in a New York Times report highlight a troubling reality for drivers: detailed records of every trip, including speed and abrupt braking, are meticulously logged by data brokers.\nThis insight into the thorough monitoring of driving behavior highlights a broader concern among consumers about the privacy of their data in the era of connected cars.\nThese internet-enabled vehicles, equipped with advanced features such as GPS navigation systems, cameras and sensors, heavily rely on the collection and transmission of extensive data.\nWhile this data access has undeniably enhanced overall driving experiences \u2014 improving safety, traffic management, payment efficiency and offering personalized entertainment options \u2014 the practice of automakers sharing driving data with third parties, particularly insurance companies, has sparked heated debate.\nAdvocates, such as data brokers like LexisNexis, argue that personalized insurance premiums based on driving behavior could incentivize safer practices and potentially lower rates. Critics, however, have voiced concerns about potential data misuse and exploitation.\nThe post Commerce Department to Release Rules on Connected Vehicles appeared first on PYMNTS.com.", "date_published": "2024-07-23T18:11:25-04:00", "date_modified": "2024-07-23T22:38:08-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/03/connected-cars.jpg", "tags": [ "automotive", "connected cars", "Connected Economy", "connected vehicles", "data protection", "data security", "Featured News", "legal", "News", "PYMNTS News", "regulations", "U.S. Commerce Department", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2015378", "url": "https://www.pymnts.com/connectedeconomy/2024/draftkings-bringing-online-sportsbook-to-washington-dc/", "title": "DraftKings Bringing Online Sportsbook to Washington DC", "content_html": "DraftKings\u00a0says it plans to launch its online sportsbook in Washington, D.C.
\nAssuming it gets the license and regulatory approval it needs, DraftKings would make the\u00a0nation\u2019s capital\u00a0its 29th North American market, the company said in a Tuesday (July 23) press release. The launch is part of a partnership with\u00a0D.C. United, the district\u2019s professional men\u2019s soccer team.
\n\u201cIt has been incredible to see legalized sports betting grow rapidly over the past six years, and with plans to launch our online sportsbook in D.C., DraftKings looks forward to expanding its presence in more than half the country,\u201d\u00a0Matt Kalish, president of DraftKings North America, said in the release.
\nThe release notes that D.C. is home to a number of professional sports teams, with fans soon able to access a range of betting markets and offerings like same-game parlays, in-game betting and special odds boosts.
\n\u201cWith the D.C. Council\u2019s recent decision to expand the world of sports betting in D.C., we look forward to working with DraftKings to introduce their online sportsbook as another way for D.C. residents to bet in the city,\u201d said\u00a0Danita Johnson, president of business operations for D.C. United. \u201cOur goal is to always make every fan experience seamless, and this platform will help us to deliver on that promise.\u201d
\nThe news release closes with a lengthy statement on DraftKings\u2019 commitment to combating problem gambling. The company and six of America\u2019s other largest sportsbook companies\u00a0launched a trade group\u00a0in March aimed at dealing with the issue.
\nThe Responsible Online Gaming Association (ROGA) hopes to come up with resources to aid in responsible gaming education and awareness.
\nThe launch of that association comes amid a surge in sports betting across the U.S., with 38 states and the District of Columbia letting residents place wagers on professional sports.
\nMeanwhile, research by PYMNTS Intelligence finds that most online sports betting fans prefer\u00a0instant disbursements, though few have access to them.
\nAccording to that report,\u00a079% of gamblers\u00a0opted for instant digital disbursements when offered them, while 76% who did not have the option to receive instant payouts would have chosen instant if offered. In all, a little less than half of gamers have access to real-time disbursements.
\nThe post DraftKings Bringing Online Sportsbook to Washington DC appeared first on PYMNTS.com.
\n", "content_text": "DraftKings\u00a0says it plans to launch its online sportsbook in Washington, D.C.\nAssuming it gets the license and regulatory approval it needs, DraftKings would make the\u00a0nation\u2019s capital\u00a0its 29th North American market, the company said in a Tuesday (July 23) press release. The launch is part of a partnership with\u00a0D.C. United, the district\u2019s professional men\u2019s soccer team.\n\u201cIt has been incredible to see legalized sports betting grow rapidly over the past six years, and with plans to launch our online sportsbook in D.C., DraftKings looks forward to expanding its presence in more than half the country,\u201d\u00a0Matt Kalish, president of DraftKings North America, said in the release.\nThe release notes that D.C. is home to a number of professional sports teams, with fans soon able to access a range of betting markets and offerings like same-game parlays, in-game betting and special odds boosts.\n\u201cWith the D.C. Council\u2019s recent decision to expand the world of sports betting in D.C., we look forward to working with DraftKings to introduce their online sportsbook as another way for D.C. residents to bet in the city,\u201d said\u00a0Danita Johnson, president of business operations for D.C. United. \u201cOur goal is to always make every fan experience seamless, and this platform will help us to deliver on that promise.\u201d\nThe news release closes with a lengthy statement on DraftKings\u2019 commitment to combating problem gambling. The company and six of America\u2019s other largest sportsbook companies\u00a0launched a trade group\u00a0in March aimed at dealing with the issue.\nThe Responsible Online Gaming Association (ROGA) hopes to come up with resources to aid in responsible gaming education and awareness.\nThe launch of that association comes amid a surge in sports betting across the U.S., with 38 states and the District of Columbia letting residents place wagers on professional sports.\nMeanwhile, research by PYMNTS Intelligence finds that most online sports betting fans prefer\u00a0instant disbursements, though few have access to them.\nAccording to that report,\u00a079% of gamblers\u00a0opted for instant digital disbursements when offered them, while 76% who did not have the option to receive instant payouts would have chosen instant if offered. In all, a little less than half of gamers have access to real-time disbursements.\nThe post DraftKings Bringing Online Sportsbook to Washington DC appeared first on PYMNTS.com.", "date_published": "2024-07-23T14:52:01-04:00", "date_modified": "2024-07-23T14:52:01-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/11/DraftKings.jpg", "tags": [ "District of Columbia", "DraftKings", "gambling", "Gaming", "News", "online sportsbook", "PYMNTS News", "Sports betting", "What's Hot", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2014153", "url": "https://www.pymnts.com/connectedeconomy/2024/crowdstrike-aftermath-five-things-you-need-to-know/", "title": "CrowdStrike Aftermath: Five Things You Need to Know", "content_html": "It wasn\u2019t a hack, cyberattack or even a sophisticated scam. The chaos that hit everything from airlines to hospitals to banks on Friday (July 19) was caused by a faulty software update from security company CrowdStrike. However, security is at the top of the table in the Connected Economy this week, and as it tries to ensure that \u201cthis won\u2019t happen again,\u201d here are five things you need to watch for, whether you\u2019re a C-level banking executive, security professional or just an interested observer.
\nFinancial institutions were temporarily hit Friday and the outage that stemmed from CrowdStrike and spread to Windows systems went deep and wide. According to DownDetector\u2019s reading on Friday, several banks and other financial institutions were affected, but not as badly as the medical and airlines sectors. The effect on airline scheduling has been well-documented, and Wired magazine reported that several hospitals in the U.K., Australia and Israel were affected. Banks that were temporarily affected included Wells Fargo, Charles Schwab and TD Bank. While most systems are now up and running, the fix for the CrowdStrike outage is manual and will take some time.
\nAs CrowdStrike CEO George Kurtz told NBC: \u201cSome of the systems that aren\u2019t recovering, we\u2019re working with them, so it could be some time for some systems that just automatically won\u2019t recover, but it is our mission to make sure that every customer is fully recovered and we\u2019re not going to relent until we get every customer back to where they were and we\u2019ll continue to protect them and keep the bad guys out of their systems.\u201d
\nKurtz warned CrowdStrike clients that bad actors will try and capitalize on the vulnerability exposed during the outage. According to security software provider McAfee, opportunistic scammers are seizing the moment to exploit vulnerabilities. McAfee reports a surge in fraudulent schemes, with cybercriminals employing a variety of tactics to deceive consumers. These scams span from phishing attacks disguised as flight rescheduling notices to fraudsters impersonating banks to steal login credentials. Even retailers requesting alternate payment methods have been implicated in these deceptive practices.
\n\u201cAs the digital landscape becomes increasingly interconnected, the importance of maintaining rigorous cybersecurity measures cannot be overstated,\u201d a McAfee blog stated. \u201cConsumers and organizations alike must stay vigilant, enhance their security protocols, and remain proactive in safeguarding their personal and operational data against such threats. This incident serves as a stark reminder of the cascading effects that a single point of failure can have in our globally networked environment.\u201d
\nCrisis management was in full effect over the weekend at both Microsoft and CrowdStrike. Microsoft\u2019s reaction, posted to its website, indicated that it was still working with its cloud service providers AWS and Google to determine the extent of the damage caused by the \u201cblue screen of death\u201d experienced by what it said was 8.5 million users on Friday.
\n\u201cThis incident demonstrates the interconnected nature of our broad ecosystem \u2014 global cloud providers, software platforms, security vendors and other software vendors, and customers,\u201d Microsoft said. \u201cIt\u2019s also a reminder of how important it is for all of us across the tech ecosystem to prioritize operating with safe deployment and disaster recovery using the mechanisms that exist. As we\u2019ve seen over the last two days, we learn, recover and move forward most effectively when we collaborate and work together. We appreciate the cooperation and collaboration of our entire sector, and we will continue to update with learnings and next steps.\u201d
\nCrowdStrike has responded with a public relations blitz and a detailed tech workaround to reinstall systems for developers. In an update provided on Sunday (July 21) the company said the Falcon Sensor system, which failed during the outage, has been restored. \u201cWe assure our customers that CrowdStrike is operating normally and this issue does not affect our Falcon platform systems. If your systems are operating normally, there is no impact to their protection if the Falcon sensor is installed,\u201d it said.
\nAs Adam Lowe, Ph.D., chief product and innovation officer at CompoSecure/Arculus with more than a decade of experience with software updates, told PYMNTS on Friday, when a software update falters, companies typically have contingency plans to reverse the changes. However, issues with essential security software like CrowdStrike can escalate dramatically. If an update disrupts core system functions, particularly at the Windows startup level, rectifying the problem can be daunting. In such cases, it may necessitate a complete system reinstallation from a prior backup, akin to wiping a hard drive and starting anew. This process is both complex and time-consuming, especially for systems that are locked out at startup, leaving limited options for a swift resolution.
\nAnd some finger-pointing has already started. Was CrowdStrike the victim of a poor testing environment?
\n\u201cI am a Certified Healthcare CIO, so I have years of background working in this field,\u201d wrote a commentator on the Krebs on Security blog. \u201cThere is a lot of friction between the \u2018new\u2019 generation of IT leaders and my generation of IT leaders. My generation has always focused much effort on testing and regression testing of code and patches, the result being longer patch cycles. New DevOps teams want to patch more often with less testing. Both approaches have their pros and cons. This is an example of the \u2018old\u2019\u00a0way of testing being more appropriate. In my world, if we had 10 variants of Windows Operating Systems (Windows 10, release xxxxxx, Windows 11, release xxxxxx), I would require 1000 tests to be run, 100 on each variant, before we released to PROD. In today\u2019s DevOps world, it is common to minimize testing, and just fix \u2018whatever breaks\u2019\u00a0on the backend, after-the-fact. The reality is that we need to meet in the middle between these two processes and come up with something that prevents this from happening.\u201d
\nThe post CrowdStrike Aftermath: Five Things You Need to Know appeared first on PYMNTS.com.
\n", "content_text": "It wasn\u2019t a hack, cyberattack or even a sophisticated scam. The chaos that hit everything from airlines to hospitals to banks on Friday (July 19) was caused by a faulty software update from security company CrowdStrike. However, security is at the top of the table in the Connected Economy this week, and as it tries to ensure that \u201cthis won\u2019t happen again,\u201d here are five things you need to watch for, whether you\u2019re a C-level banking executive, security professional or just an interested observer. \nIt\u2019s not over\nFinancial institutions were temporarily hit Friday and the outage that stemmed from CrowdStrike and spread to Windows systems went deep and wide. According to DownDetector\u2019s reading on Friday, several banks and other financial institutions were affected, but not as badly as the medical and airlines sectors. The effect on airline scheduling has been well-documented, and Wired magazine reported that several hospitals in the U.K., Australia and Israel were affected. Banks that were temporarily affected included Wells Fargo, Charles Schwab and TD Bank. While most systems are now up and running, the fix for the CrowdStrike outage is manual and will take some time. \nAs CrowdStrike CEO George Kurtz told NBC: \u201cSome of the systems that aren\u2019t recovering, we\u2019re working with them, so it could be some time for some systems that just automatically won\u2019t recover, but it is our mission to make sure that every customer is fully recovered and we\u2019re not going to relent until we get every customer back to where they were and we\u2019ll continue to protect them and keep the bad guys out of their systems.\u201d\nBe prepared for fraudster reactions\nKurtz warned CrowdStrike clients that bad actors will try and capitalize on the vulnerability exposed during the outage. According to security software provider McAfee, opportunistic scammers are seizing the moment to exploit vulnerabilities. McAfee reports a surge in fraudulent schemes, with cybercriminals employing a variety of tactics to deceive consumers. These scams span from phishing attacks disguised as flight rescheduling notices to fraudsters impersonating banks to steal login credentials. Even retailers requesting alternate payment methods have been implicated in these deceptive practices. \n\u201cAs the digital landscape becomes increasingly interconnected, the importance of maintaining rigorous cybersecurity measures cannot be overstated,\u201d a McAfee blog stated. \u201cConsumers and organizations alike must stay vigilant, enhance their security protocols, and remain proactive in safeguarding their personal and operational data against such threats. This incident serves as a stark reminder of the cascading effects that a single point of failure can have in our globally networked environment.\u201d\nCrowdStrike and Microsoft have responded\nCrisis management was in full effect over the weekend at both Microsoft and CrowdStrike. Microsoft\u2019s reaction, posted to its website, indicated that it was still working with its cloud service providers AWS and Google to determine the extent of the damage caused by the \u201cblue screen of death\u201d experienced by what it said was 8.5 million users on Friday. \n\u201cThis incident demonstrates the interconnected nature of our broad ecosystem \u2014 global cloud providers, software platforms, security vendors and other software vendors, and customers,\u201d Microsoft said. \u201cIt\u2019s also a reminder of how important it is for all of us across the tech ecosystem to prioritize operating with safe deployment and disaster recovery using the mechanisms that exist. As we\u2019ve seen over the last two days, we learn, recover and move forward most effectively when we collaborate and work together. We appreciate the cooperation and collaboration of our entire sector, and we will continue to update with learnings and next steps.\u201d\nThere is a workaround\nCrowdStrike has responded with a public relations blitz and a detailed tech workaround to reinstall systems for developers. In an update provided on Sunday (July 21) the company said the Falcon Sensor system, which failed during the outage, has been restored. \u201cWe assure our customers that CrowdStrike is operating normally and this issue does not affect our Falcon platform systems. If your systems are operating normally, there is no impact to their protection if the Falcon sensor is installed,\u201d it said. \nSoftware updates are under the microscope\nAs Adam Lowe, Ph.D., chief product and innovation officer at CompoSecure/Arculus with more than a decade of experience with software updates, told PYMNTS on Friday, when a software update falters, companies typically have contingency plans to reverse the changes. However, issues with essential security software like CrowdStrike can escalate dramatically. If an update disrupts core system functions, particularly at the Windows startup level, rectifying the problem can be daunting. In such cases, it may necessitate a complete system reinstallation from a prior backup, akin to wiping a hard drive and starting anew. This process is both complex and time-consuming, especially for systems that are locked out at startup, leaving limited options for a swift resolution.\nAnd some finger-pointing has already started. Was CrowdStrike the victim of a poor testing environment? \n\u201cI am a Certified Healthcare CIO, so I have years of background working in this field,\u201d wrote a commentator on the Krebs on Security blog. \u201cThere is a lot of friction between the \u2018new\u2019 generation of IT leaders and my generation of IT leaders. My generation has always focused much effort on testing and regression testing of code and patches, the result being longer patch cycles. New DevOps teams want to patch more often with less testing. Both approaches have their pros and cons. This is an example of the \u2018old\u2019\u00a0way of testing being more appropriate. In my world, if we had 10 variants of Windows Operating Systems (Windows 10, release xxxxxx, Windows 11, release xxxxxx), I would require 1000 tests to be run, 100 on each variant, before we released to PROD. In today\u2019s DevOps world, it is common to minimize testing, and just fix \u2018whatever breaks\u2019\u00a0on the backend, after-the-fact. The reality is that we need to meet in the middle between these two processes and come up with something that prevents this from happening.\u201d\nThe post CrowdStrike Aftermath: Five Things You Need to Know appeared first on PYMNTS.com.", "date_published": "2024-07-22T04:00:42-04:00", "date_modified": "2024-07-21T19:25:16-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/CrowdStrike-outage-Microsoft.jpg", "tags": [ "Adam Lowe", "Arculus", "CompoSecure", "Connected Economy", "CrowdStrike", "Cybersecurity", "Featured News", "George Kurtz", "Krebs on Security", "McAfee", "Microsoft", "News", "PYMNTS News", "software updates", "Window update", "Connected Economy" ] }, { "id": "https://www.pymnts.com/?p=2014127", "url": "https://www.pymnts.com/connectedeconomy/2024/ce-100-index-falters-0-8-as-crowdstrike-plunges-on-global-it-outage/", "title": "CE 100 Index Falters 0.8% as CrowdStrike Plunges on Global IT Outage", "content_html": "The CE 100 Index faltered 0.8% in a week that reminded us just how connected we all are \u2014 by software, hardware, and apps \u2014 and how an outage can bring things to a standstill.
\n![\"\"](\"https://www.pymnts.com/wp-content/uploads/2024/07/ce100-0721.jpg\")
\n
Of course, CrowdStrike was the focus here, as its shares plunging nearly 18% on the week led the Work segment 1.5% lower.
\nBanks, airlines and nearly any and every business relying on a Microsoft Windows computer system found themselves grappling with a massive disruption, PYMNTS reported.
\nAs of late afternoon Friday, what was being called \u201cthe worst IT outage in history\u201d was still rippling through various systems. The outage was tied to a software update issued by security firm CrowdStrike that inadvertently took down Microsoft\u2019s systems. CrowdStrike software is used by over half of Fortune 500 companies.
\nDomino\u2019s slid roughly the same amount during the week, by about 17%, and the Eat pillar was down 2.7% through the week.
\nAs reported during the company\u2019s most recent earnings, CEO Russell Weiner shared that loyalty reward redemptions for pickup orders have skyrocketed since the brand refreshed its program last fall.
\n\u201cConsumer spending [is] slow, but let\u2019s think about what\u2019s happened with that as a backdrop. We\u2019ve grown orders in our delivery business, our carryout business, every income cohort,\u201d Weiner said. \u201cWe\u2019ve grown order count in international. [That\u2019s] what\u2019s going on in an economy where folks are maybe struggling to decide what to buy.\u201d\u00a0 U.S. same-store sales growth came in at 4.8%. Analysts expected growth of 4.9%, as reported by The Wall Street Journal.
\nThese losses were more than enough to offset the 2% rally in the Bank sector.
\nGoldman Sachs shares were 3.8% higher. Drilling down into the data, the company\u2019s credit card balances, up 11% year over year to $19 billion, remain somewhat even with the first quarter, while management said on the conference call with analysts that they were \u201cpleased\u201d with the card performance.
\nCharge-offs of 8.4% for consumer loans have been consistent with recent quarters. The overall provision for credit losses in the quarter stood at $395 million, down 27% year over year, reflecting the card business (the wholesale loan charge-offs, according to the data, stand at 0%).
\nWithin its platform solutions segment, consumer platforms delivered 4% growth to $599 million in revenues, which reflected higher average credit card balances, though results were offset by the GreenSky transaction.
\nAmerican Express pushed ahead with a 5% gain this week, but the Pay and Be Pay segment slipped 1.3%. American Express earnings released on Friday indicated that consumers continue to spend on experiences \u2014 particularly dining out \u2014\u00a0and that momentum belongs to the younger generations who are using their cards more often.
\nSpending by millennial and Gen Z customers was up 13% year over year, management said.
\nCFO Christophe Le Caillec said on the conference call with analysts that spending growth was visible across several categories. Spending on goods and services was 6% higher, and travel and entertainment-related spending grew 7%.
\n\u201cWe did see some slower growth in certain [travel and entertainment] categories versus the prior quarter, especially in airline and lodging,\u201d he said. But spending at restaurants, he said, \u201cremained strong.\u201d
\nAs for using the cards more often, the company\u2019s transaction growth was 9% higher in the June quarter vs. last year.
\nBNPL providers such as Sezzle rocketed ahead by 66%. As reported this past week by PYMNTS, Sezzle has added Spanish language capability to its buy now, pay later (BNPL) app and checkout. This capability is meant to appeal to the 40 million Americans who speak Spanish, the company said in a Tuesday release.
\nAffirm shares lost nearly 10%.
\nIn general news tied to the BNPL space, the Consumer Financial Protection Bureau\u2019s (CFPB) rule classifying BNPL as credit card providers takes effect July 30, meaning these firms must provide legal protections and rights delivered by conventional credit cards.
\nA letter this week from the American FinTech Council (which, among other enterprises, represents BNPL providers) to Rohit Chopra, director of the CFPB, asked that the rule become effective next year, not this month.
\nIn the letter, the Council argued that \u201cgiven the complexity and variation in business models, lender practices, and partnerships with merchants, as well as differences in the levels of preexisting compliance with the provisions enumerated in the Interpretive Rule by BNPL lenders, it seems prudent to adopt an extended compliance period. Therefore, AFC recommends extending the effective date of the Interpretive Rule from its current date of July 30, 2024, to January 1, 2025.\u201d
\nThe post CE 100 Index Falters 0.8% as CrowdStrike Plunges on Global IT Outage appeared first on PYMNTS.com.
\n", "content_text": "The CE 100 Index faltered 0.8% in a week that reminded us just how connected we all are \u2014 by software, hardware, and apps \u2014 and how an outage can bring things to a standstill.\n\n \nOf course, CrowdStrike was the focus here, as its shares plunging nearly 18% on the week led the Work segment 1.5% lower.\nBanks, airlines and nearly any and every business relying on a Microsoft Windows computer system found themselves grappling with a massive disruption, PYMNTS reported.\nAs of late afternoon Friday, what was being called \u201cthe worst IT outage in history\u201d was still rippling through various systems. The outage was tied to a software update issued by security firm CrowdStrike that inadvertently took down Microsoft\u2019s systems. CrowdStrike software is used by over half of Fortune 500 companies.\nDomino\u2019s slid roughly the same amount during the week, by about 17%, and the Eat pillar was down 2.7% through the week.\nAs reported during the company\u2019s most recent earnings, CEO Russell Weiner shared that loyalty reward redemptions for pickup orders have skyrocketed since the brand refreshed its program last fall.\n\u201cConsumer spending [is] slow, but let\u2019s think about what\u2019s happened with that as a backdrop. We\u2019ve grown orders in our delivery business, our carryout business, every income cohort,\u201d Weiner said. \u201cWe\u2019ve grown order count in international. [That\u2019s] what\u2019s going on in an economy where folks are maybe struggling to decide what to buy.\u201d\u00a0 U.S. same-store sales growth came in at 4.8%. Analysts expected growth of 4.9%, as reported by The Wall Street Journal.\nThese losses were more than enough to offset the 2% rally in the Bank sector.\nBanks Weigh in on Consumer Spending\nGoldman Sachs shares were 3.8% higher. Drilling down into the data, the company\u2019s credit card balances, up 11% year over year to $19 billion, remain somewhat even with the first quarter, while management said on the conference call with analysts that they were \u201cpleased\u201d with the card performance. \nCharge-offs of 8.4% for consumer loans have been consistent with recent quarters. The overall provision for credit losses in the quarter stood at $395 million, down 27% year over year, reflecting the card business (the wholesale loan charge-offs, according to the data, stand at 0%).\nWithin its platform solutions segment, consumer platforms delivered 4% growth to $599 million in revenues, which reflected higher average credit card balances, though results were offset by the GreenSky transaction.\nAmerican Express pushed ahead with a 5% gain this week, but the Pay and Be Pay segment slipped 1.3%. American Express earnings released on Friday indicated that consumers continue to spend on experiences \u2014 particularly dining out \u2014\u00a0and that momentum belongs to the younger generations who are using their cards more often.\nSpending by millennial and Gen Z customers was up 13% year over year, management said.\nCFO Christophe Le Caillec said on the conference call with analysts that spending growth was visible across several categories. Spending on goods and services was 6% higher, and travel and entertainment-related spending grew 7%.\n\u201cWe did see some slower growth in certain [travel and entertainment] categories versus the prior quarter, especially in airline and lodging,\u201d he said. But spending at restaurants, he said, \u201cremained strong.\u201d\nAs for using the cards more often, the company\u2019s transaction growth was 9% higher in the June quarter vs. last year.\nBNPL providers such as Sezzle rocketed ahead by 66%. As reported this past week by PYMNTS, Sezzle has added Spanish language capability to its buy now, pay later (BNPL) app and checkout. This capability is meant to appeal to the 40 million Americans who speak Spanish, the company said in a Tuesday release.\nAffirm shares lost nearly 10%.\nIn general news tied to the BNPL space, the Consumer Financial Protection Bureau\u2019s (CFPB) rule classifying BNPL as credit card providers takes effect July 30, meaning these firms must provide legal protections and rights delivered by conventional credit cards. \nA letter this week from the American FinTech Council (which, among other enterprises, represents BNPL providers) to Rohit Chopra, director of the CFPB, asked that the rule become effective next year, not this month.\nIn the letter, the Council argued that \u201cgiven the complexity and variation in business models, lender practices, and partnerships with merchants, as well as differences in the levels of preexisting compliance with the provisions enumerated in the Interpretive Rule by BNPL lenders, it seems prudent to adopt an extended compliance period. Therefore, AFC recommends extending the effective date of the Interpretive Rule from its current date of July 30, 2024, to January 1, 2025.\u201d\nThe post CE 100 Index Falters 0.8% as CrowdStrike Plunges on Global IT Outage appeared first on PYMNTS.com.", "date_published": "2024-07-22T04:00:41-04:00", "date_modified": "2024-07-21T21:26:25-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/CE100-Index0721.jpg", "tags": [ "Affirm", "American Express", "American Fintech Council", "CE 100", "CE 100 Index", "Christophe Le Caillec", "Connected Economy", "Consumer Spending", "CrowdStrike", "Domino's", "Featured News", "Goldman Sachs", "News", "PYMNTS News", "Russell Weiner", "sezzle", "Connected Economy" ] } ] }