About Us | Contact Us
View Cart

Customer Threatened By Bank Over Bitcoin

By Vigilize | Monday, November 27, 2017 - Leave a Comment

As the cryptocurrency gains users, some financial organizations are cracking down.


An article review.


ServIcons_ITAudit_01

Throughout history new technologies have often been met with some resistance. From laws protecting businesses threatened by a new invention to cautionary articles warning of real (or imaginary) risks, change can be tumultuous. As it turns out, cryptocurrencies such as Bitcoin are no exception, as a recent article submitted to us by our friend Wes Pollard of Home Bank describes.

You may be familiar with the requirement that banks report certain transactions to the Federal Government: large deposits often require paperwork, including a source for the deposited funds, in an attempt to combat crime. What you’re probably not familiar with is getting a phone call from your bank asking you what you’re withdrawing money for – which is exactly what happened to one PNC Bank customer in October.

The customer had made several small transactions with Coinbase, an online currency exchange where customers can buy and sell Bitcoin, and was soon contacted by his bank with a demand for information. When the customer declined to provide that information, the bank’s representative went so far as to threaten to close his account, saying that PNC wanted “nothing to do” with Bitcoin.

This development is unusual but not unexpected. While buying and selling Bitcoin is legal, it is often used to purchase things which are not – and that’s in addition to the (far-fetched, at this point) risk the new currency presents to established financial institutions. While it is unclear whether this customer’s experience is representative of an official organization-wide policy or something decided by a branch manager, what is clear is the uncertainty that surrounds cryptocurrencies for banks, consumers, and the government.


Original article by Sterlin Lujan writing for Bitcoin News.


same_strip_012513


 

Latest News
    What you need to know for compliance coast-to-coast. Back in 2020 we posted an article containing links to data breach laws from each state, and it has proven to be one of our more popular posts.  Because laws surrounding the use (and abuse) of technology are always evolving, we thought it was worth taking another […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! In the spirit of October and Halloween we have put together a gallery of our “spooky” Awareness Posters at halloween.infotex.com. Use them to help decorate for the holiday! Check […]
    With nearly three in four people using third-party payment services tied to their bank accounts, the risk isn’t limited to your own policies and procedures… An article review. When working on cybersecurity awareness messages for your customers you may be inclined to focus on your own systems, but a new study on security in digital […]
    PRESS RELEASE – FOR IMMEDIATE RELEASE BUSINESS NEWS NEW EMPLOYEE FOR INFOTEX infotex is excited to announce that Cody Smith has joined the team as the newest Data Security Analyst. Cody holds several industry certifications (including the most recent: SSCP) as well as a B.S in Cyber Security & Information Assurance from Western Governors University. […]
    It’s all about protecting Customer information . . . In 1999 the Gramm-Leach-Bliley Act (GLBA) directed the Federal Deposit Insurance Corporation (FDIC) and other federal banking agencies to ensure that financial institutions have policies, procedures, and controls in place to prevent the unauthorized disclosure of customer financial information.  The FDIC and other federal banking agencies […]
    A Ghoulish Gallery! Just a few scary-themed Awareness posters from our collection, which you can see at posters.infotex.com! Below you will find both the vertical and horizontal versions of each of the posters, all you need to do is “right-click > “Save link as…” to download! Vertical 8.5″ x 11″ Format   Horizontal 11″ x […]
    What to Expect in an Annual Information Security Report to the Board Webinar-Movie Information security ranks as a top risk to financial institutions, both in terms of likelihood and overall impact. It is important that boards receive annual comprehensive reporting from management about the information security risks and incidents, and the actions taken to address […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the whole collection! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around […]
    With the potential to break all existing forms of encryption, quantum computing poses a unique challenge… An article review. While quantum computing has been a buzzword for some time now the technology remains largely theoretical, with small scale proofs-of-concept that still suffer from serious limitations.  That hasn’t stopped security researchers from worrying about the technology’s […]
    A new way of helping people “read” new guidance… Look for more in the future! To save you time, we are proud to present “Adam Reads” . . . recorded versions of our Guidance Summaries! Below you can find an embedded player for the audio file. If you are having issues with that working, you […]