JP Vergne | Deceptive cybersecurity

SC Magazine, a publication for IT security professionals, spoke with Assistant Professor JP Vergne about the Consumer Financial Protection Bureau (CFPB) cracking down on firms’ misleading representations of cyber security practices.

Dwolla, an Iowa-based digital payments company, was fined $100,000 by the CFPB for its deceptive cybersecurity claims.

“They're showing their teeth,” said Vergne, who is also the founder of fintech research institute Crypto Capitalism Center.

Vergne pointed out that it is often unclear which regulatory authority applies to approximately 15,000 fintech startups.

“That concerns regulators across the world,” he said.