JUST ANNOUNCED: Members of the Fraud Definitions Work Group

Today, the Federal Reserve announced the members of the new Fraud Definitions Work Group. These industry experts will work collaboratively with the Federal Reserve on recommendations to improve the quality and consistency of ACH, wire and check fraud data.

Over 140 individuals submitted an “expression of interest” from January 24 through February 14, 2019 and the Federal Reserve selected work group members from the pool of interested candidates to help ensure diversity of thought and strong expertise across the many needed disciplines. Read the press release to see the full list of members.

Read the press release

To develop a more consistent and holistic view of terminology used to describe payments fraud the work group will:

  • Develop a recommended fraud classification model that includes detailed definitions and/or categories to help the industry better understand key data points in payments fraud; and
  • Propose a roadmap to encourage broad industry adoption of this classification model

Want to follow the work group’s progress?

Join the Fraud Definitions Community Interest Group by submitting or updating your FedPayments Improvement Community profile and selecting “ACH, Wire and Check Fraud Definitions” as a topic of interest. This will allow you to receive work group updates as well as notifications of any input opportunities.

You can learn more about this work effort and other Fed payment security priorities by visiting FedPaymentsImprovement.org.

Federal Reserve Payments Study: 2018 Supplement shows accelerated electronic payments growth

This Federal Reserve Payments Study (FRPS) 2018 annual supplement (Off-site) updates data on core noncash payment types and systems that support everyday payments by U.S. consumers and businesses.

Among the important findings:

  • Card payments continued to show robust growth from 2016 to 2017, collectively increasing 10.1 percent by number and 8.4 percent by value.
  • Remote payments continued to grow as a share of total general-purpose card payments.
  • Chip-authenticated payments accounted for more than half of the value of in-person general-purpose card payments in 2017.
  • Network automated clearinghouse (ACH) payments exhibited accelerating growth, increasing 5.7 percent by number and 6.9 percent by value from 2016 to 2017.
  • Large-institution check payments showed an accelerated decline of 4.8 percent by number from 2016 to 2017.

For the full Payments Study, including charts and data tables, visit the Payment Research (Off-site) page on the Board of Governors website.

Payments Security Experts Needed for New Fraud Definitions Work Group and Community Interest Group

Fraud banner Blog

The Federal Reserve is seeking payments industry leaders with specific expertise to participate in a Fed-led work effort to create ACH, wire and check fraud definitions. This new work group is the next step in the Fed’s collaborative efforts that will help develop a more consistent and holistic terminology to describe payments fraud in the United States.

We believe the benefits to be derived from this work group include an enhanced understanding of fraud trends and more consistency around the classification of fraud incidents, which can lead to improved fraud mitigation, easier collaboration for data sharing for fraud mitigation, and reduced fraud losses.

Interested in Participating?

The Fraud Definitions Work Group will be composed of 20-30 industry participants selected by the Fed who have in-depth experience related to improving ACH, wire and check fraud data quality and consistency. The Federal Reserve will select work group members from the pool of interested candidates to ensure diversity of thought and strong expertise across the many needed disciplines. If you have the required expertise and capacity to participate on this Fed-led work group, we invite you to submit an expression of interest (Off-site) by February 14.

Additional information on the desired qualifications, work group expectations, and instructions on how to express interest in joining the work group can be found on the ACH, Wire and Check Fraud Definitions webpage.

ACH, Wire and Check Fraud Definitions

The Fraud Definitions Community Interest Group is open to industry stakeholders interested in following and providing feedback on the Fraud Definitions Work Group outputs. This group of stakeholders will obtain regular updates on the work group’s progress and influence the work group deliverables.

You can join the Fraud Definitions Community Interest Group by submitting or updating your FedPayments Improvement Community profile and selecting “ACH, Wire and Check Fraud Definitions” as a topic of interest.

Join Fraud Definitions Community Interest Group

Need additional information before engaging with us – attend our January 31 webinar!

Join us for a webinar on January 31, 2019 from 3:00-4:00pm CT to learn more about these engagement opportunities and the benefits that may be realized by improving ACH, wire and check fraud data quality and consistency.

Register Today! (Off-site)

We look forward to collaborating with the industry and working towards a more consistent view of payments fraud in the United States. If you have any questions, please reach out to us at FedPaymentsImprovement@chi.frb.org or via our social media channels.

Sean Rodriguez Embarks on His Next Quest: Retirement

Federal Reserve Faster Payments Strategy Leader Sean Rodriguez will retire from the Federal Reserve Bank effective January 4, 2019. Rodriguez, an executive vice president and 35-year veteran of the Federal Reserve, is leaving on a high note after steering multi-year collaborative industry efforts to a successful conclusion with the launch of a new industry-led organization, the U.S. Faster Payments Council (FPC) (Off-site).

“Sean was tireless in his enthusiasm and dedication to rallying diverse payments stakeholders around a vision of safe, efficient and ubiquitous faster payments in the United States by 2020,” said Federal Reserve Payments Strategy Director Dave Sapenaro. “His leadership and facilitation were instrumental in the industry coming together in an unprecedented feat of collaboration and inclusive problem solving that will now carry forward in the mission and guiding principles of the FPC.”

As Faster Payments Strategy Leader, in 2015 Rodriguez established and led the 320-member Faster Payments Task Force (Off-site) through a series of industry milestones, including the development of faster payments effectiveness criteria, an evaluation of faster payments industry solutions, and the creation of key recommendations for advancing faster payments in the United States. One of the recommendations – to establish a faster payments governance framework – became Rodriguez’s chief focus in 2018. He led 27 diverse industry stakeholders, known as the Governance Framework Formation Team (GFFT), in planning, deliberating and drafting the Operating Vision and bylaws for what is now the U.S. Faster Payments Council (Off-site).

“It’s been very rewarding to work with so many across the industry to achieve real progress in payments the past several years,” said Rodriguez. “I hope the strong collaboration among stakeholders and the Federal Reserve will continue to ensure the world class payment system we’ve collectively envisioned for our country becomes a reality.”

Earlier in his career, Rodriguez led the formation of the Federal Reserve’s Industry Relations Program and engaged payments stakeholders in the development of the Federal Reserve’s 2015 paper, “Strategies for Improving the U.S. Payment System (PDF).” This seminal work gave rise to the faster payments strategy Rodriguez led, in addition to other priorities for improving the payment system. Before this, Rodriguez spent more than a dozen years in the Customer Relations and Support Office, spearheading creation of the National Sales function and ultimately leading National Sales and Marketing for Federal Reserve Financial Services.

Rodriguez will be fondly remembered by many for his charismatic leadership, good humor, strategic focus and unrelenting drive to unite an industry around a modern payment vision, where any American can pay another, anytime, anywhere, and with near-immediate funds availability.

Starting in January 2019, Rodriguez’s role as Faster Payments Strategy Leader will be assumed by Senior Vice President and Industry Relations Director Connie Theien, who has partnered with Rodriguez to design and manage faster payments industry efforts since 2015.

Join U.S. Faster Payments Council Founders for a Webinar!

In November, the Federal Reserve announced the launch of a new membership organization, the U.S. Faster Payments Council (FPC) (Off-site), whose mission is to ensure all Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability.

To learn more about this widely anticipated organization, join FPC founders for an informative webinar:

What: The New U.S. Faster Payments Council – Your Questions Answered!
When: December 5, 11:00 a.m. – Noon CT … or… December 13, 9:00 – 10:00 a.m. CT
Who: All are welcome

Register Now (Off-site)

Background:

In its July 2017 final report, the Faster Payments Task Force called upon all stakeholders to realize the vision for a payment system in the United States that is faster, ubiquitous, broadly inclusive, safe, highly secure and efficient by 2020. The task force recommended ongoing collaboration to create a faster payments governance framework, inclusive of all stakeholders, to facilitate ubiquity of faster payments.

The Governance Framework Formation Team (GFFT), a short-term work group of 27 industry participants, was appointed by the task force to fulfill its vision. Their work on a governance framework is now captured in the mission, values and structure of the new U.S. Faster Payments Council.

Ready to learn more? Register now (Off-site) for either the December 5 or December 13 webinar.

The Inaugural FedPayments Improvement Community Forum Highlights Payments Announcements and Opportunities for Community Collaboration

The FedPayments Improvement Community Forum brought together 300 attendees under a common theme: to help shape the next steps in the Federal Reserve’s initiatives to modernize the U.S. payment system.

Keynote speeches offered insight and updates on payment improvement initiatives and workshops facilitated conversations and collaboration. Relive the energy and inspiration attendees expressed in candid interviews filmed live at the Forum.

Download Forum Summary (PDF)

Workshop Summaries

Collaborate. Engage. Transform.


To learn more about the Federal Reserve’s work and participate in this historic effort to collaborate, engage and transform the U.S. payment system, join the FedPayments Improvement Community.

Thank You for Attending a Faster Payments Settlement Assessment Federal Register Notice Town Hall

Thank you to everyone who attended our town halls on the Faster Payments Settlement Assessment Federal Register Notice (Off-site). The Federal Reserve believes that industry collaboration is the foundation of any enduring strategic improvements to the U.S. payment system.

If you were unable to attend or would like to review the content covered at each town hall, we encourage you to view the slides in the town hall section of our Faster Payments Settlement Assessment page.

All comments must be formally submitted in order to be a part of the Board’s assessment. Don’t miss your opportunity to provide input on or before the December 14 deadline using one of the following channels:

  • Federal Reserve website (Off-site): Follow the online instructions (Off-site) for submitting comments.
  • Email: regs.comments@federalreserve.gov; include docket number OP-1625 in the subject line of the message.
  • Fax: (202) 452-3819 or (202) 452-3102.
  • Mail: Ann Misback, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, DC 20551.

To learn more about the Federal Register Notice and the opportunity to submit comments, visit FedPaymentsImprovement.org.

Federal Reserve Announces Next Phase of Secure Payments Strategy

The Federal Reserve has served as a catalyst for change in the improvement and advancement of payments security in the United States and continues to engage with industry stakeholders. To help the Fed set priorities for collaboration with the industry to enhance end-to-end payments security, the Fed commissioned Boston Consulting Group (PDF) to assess fraud and associated costs, causes and contributing factors. In addition, Federal Reserve Payments Study data announced (Off-site) this October fostered a better understanding of fraud in the payments system. Together, these two data sources provide a comprehensive overview of payments fraud in the United States, will help educate the industry on the payments fraud landscape, and point to areas where additional work is needed.

Based on this Fed and third-party research, ongoing payments industry discussions, and recommendations of the Secure Payments Task Force, the Federal Reserve determined three common themes affecting payment security.

  1. U.S. payments fraud has continued to grow, although it remains a small fraction of overall U.S. payments
  2. Data gaps and inconsistencies across payment methods and stakeholder groups make it more difficult to assess – and address – payments fraud
  3. We are gaining insights on where fraudsters are exploiting vulnerabilities in the U.S. payment system

As announced at the inaugural FedPayments Community Forum October 3, the Federal Reserve has identified four payments security priorities for near-term action to address these themes:

  • ACH and Wire Fraud Definitions
  • Synthetic Identity Payments Fraud Mitigation
  • Remote Payments Authentication Fraud Mitigation
  • Facilitate Strategic Dialogue on Evolving Payments Security and Fraud Issues

Learn more about the Federal Reserve’s payments security efforts.

Federal Reserve Payments Study highlights U.S noncash payments fraud rose between 2012 and 2015

The Federal Reserve released its latest payments study fraud report, which details the cost and number of fraudulent payments in the United States. Among the important findings:

  • The 2015 payments fraud rate, by value, was more than 20 percent larger than in 2012, while the 2015 fraud rate, by number, was nearly 70 percent larger than in 2012
  • There was an estimated 46 cents of payments fraud for every $10,000 of payments in 2015, compared to 38 cents of payments fraud for every $10,000 of payments in 2012
  • The value of fraudulent card payments and automated teller machine (ATM) withdrawals rose from an estimated $4 billion in 2012 to $6.5 billion in 2015
  • Card fraud, by value, accounted for more than three-fourths of noncash payments fraud in 2015, rising from less than two-thirds in 2012
  • The value of ACH fraud rose to $1.2 billion in 2015 from $1 billion in 2012, but the fraud rate was little changed

For the full report, including charts and data tables, visit the Federal Reserve Payments Study (Off-Site) page.

In addition, the Federal Reserve commissioned Boston Consulting Group earlier this year to assess fraud and associated costs, causes and contributing factors. For more information, visit the Payments Security page.

Introducing the U.S. Faster Payments Council

The Governance Framework Formation Team (GFFT) has launched a new, highly anticipated payments organization – the U.S. Faster Payments Council (FPC).

In today’s increasingly mobile, digital economy, Americans are demanding a world-class payment system where they can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. With the Faster Payments Task Force’s Effectiveness Criteria (PDF) as a touchstone, the FPC’s mission is to work with all stakeholders to meet evolving end-user needs by advancing the faster payments ecosystem, driving the emerging faster payments infrastructure toward ubiquity, fostering a high-quality and secure user experience for all and supporting widespread use of faster payments.

By design, the FPC encourages a diverse range of perspectives in supporting the path to ubiquitous faster payments and is open to all stakeholders in the U.S. payment system. By embracing a broad member audience, including financial institutions, payment network operators, technology providers, consumer and business end users, and individuals with a professional interest in improving the payment system, the FPC will tackle challenges that may be more difficult to address through bilateral cooperation alone.

As a new organization, the FPC will channel its resources toward the most pressing issues that are inhibiting faster payment ubiquity. In its first two years, the organization will focus on:

  • Supporting adoption of practices that enhance safety and security for service providers and users of faster payments.
  • Identifying, developing and supporting guidelines and market practices that will address opportunities and emerging issues in an open and collaborative way.
  • Developing an education and awareness program to foster better understanding of faster payments.

The FPC’s structure, operations and activities are designed to adhere to the FPC’s fundamental principles of inclusiveness, fairness, flexibility, responsiveness and transparency. Through diverse representation on the FPC Board and open opportunities to serve on committees and work groups, all active members have a voice in the direction of the work.

A number of GFFT members have already committed to being founding sponsors or members of the FPC and will lead establishment activities for the organization. To learn more, visit www.FasterPaymentsCouncil.org (Off-site).