The Federal Reserve’s Payment Security Strategy
The U.S. payment system faces dynamic, persistent and rapidly escalating threats as cybercrime makes it easier than ever to commit payments fraud. The Federal Reserve continues to work collaboratively with the industry to reduce fraud risk and advance the safety, security and resiliency of the payment system. As announced at the FedPayments Improvement Community Forum in October 2018, the Federal Reserve has identified four priorities for near-term action based on Fed and third-party research, ongoing payments industry discussions, and recommendations of the Secure Payments Task Force, which concluded its work in March 2018:
- ACH and Wire Fraud Definitions: Improve understanding of fraud by creating and publishing recommended fraud definitions; develop a roadmap to encourage broad industry acceptance and use of these definitions in fraud reporting.
- Synthetic Identity Payments Fraud Mitigation: Increase Federal Reserve and industry understanding of system vulnerabilities that allow the creation and use of synthetic identities to perpetrate fraud; partner with government entities and industry stakeholders to identify and advance approaches to mitigate synthetic identity risk and prevent payments fraud.
- Remote Payments Fraud Mitigation: Reduce fraud by identifying approaches available today to mitigate remote payments fraud and strengthen endpoint security; encourage adoption of effective approaches to secure digital identities and improve authentication of remote payments transactions.
- Facilitate Strategic Dialogue on Evolving Payments Security and Fraud Issues: Improve understanding of emerging fraud vulnerabilities, threats and risk management opportunities through a rich dialogue on payments fraud across the industry in existing industry work groups and payments fraud information sharing forums.
The Federal Reserve continues to seek industry input on these work streams and other ideas to advance payment security, and welcomes the opportunity to encourage and assist existing industry initiatives to identify and promote best practices, frameworks and information-sharing forums for payment security and risk management. As always, the Federal Reserve will continue to be transparent, collaborative and inclusive as it works to keep improving the U.S. payment system.