The mission of the Secure Payments Task Force is to provide a forum for stakeholders to advise the Federal Reserve in its leader/catalyst and operator roles on payment security matters, and identify and promote actions that can be taken by payment system participants collectively or by the Federal Reserve System. The Secure Payments Task Force established work groups, including the Payment Identity Management Work Group, in an endeavor to advance its efforts. The work group identified their respective views on payment security challenges, industry desired outcomes and solutions as outlined below.
The payments industry continues to face escalating challenges with managing and decreasing fraud due to inherent limitations and weaknesses in existing payment systems.
This challenge is evidenced by:
- Increases in card not present (CNP) fraud (driven by the industry migration to EMV chip cards and terminals and the overall growth in e-commerce transactions)
- Increases in wire fraud due to corporate account takeover fraud
- Increases in account takeover and fraudulent application fraud due to compromises of consumer information (e.g. personally identifiable information PII, user IDs, passwords)
Identification and adoption of Payment Identity Management practices to mitigate existing and anticipated fraud vectors.
The following outlines the phased solutions the work group is planning to execute to achieve the desired outcome.
Phase 1—Create an industry resource that contains practical risk based guidance/advice on payment identity management practices that payment industry participants and potentially regulators could use to inform their thinking when evaluating and implementing identity management systems
Phase 2—Promote advancement of Payment Identity Management best practices through the creation of a recommendation framework to the payment industry
Phase 3—Move the payment industry towards a common set of payment identity management policies, practices and protocols to include communications and awareness efforts to promote market adoption of Payment Identity Management best practices