Recommendation 7: Recommend, develop, and implement methods for fraud detection, reporting, and information sharing in faster payments.
The Faster Payments Task Force calls for a group within the governance framework to recommend and develop methods for fraud detection and reporting, and to implement methods for information sharing for faster payments to achieve the core ecosystem goal of safety, integrity, and trust.
The task force seeks to make faster payments secure and protected by establishing rules and baseline requirements for identity management; payer authorization; end-user and payment authentication; fraud and error prevention, mitigation, detection and resolution; and data protection (Recommendation 2). In addition, through the proposal process, the task force encourages the application of new security technologies to make faster payments ever more secure. In addition to these strong requirements and in recognition that fraud cannot be eliminated, the task force also believes that timely detection of fraud is important to building integrity and trust among end users in faster payments. As such, there are benefits that can be gained from timely fraud reporting and information sharing across solutions, because it can highlight patterns in fraud and/or breaches that may not be visible to individual solutions alone. For example, sharing information such as patterns suggestive of risk, known instances of fraud, known vulnerabilities, and effective risk mitigation strategies may assist fraud management of the faster payment system.
Steps to advance this recommendation
To carry out this recommendation, the task force calls for a group under the governance framework to recommend and develop methods for fraud detection that would be implemented by faster payments solution operators and/or service providers. It also asks this group to recommend and develop reporting needs for service providers and implement a method to enable fraud information sharing. The task force requests that the group take into account the attributes described in the task force’s Effectiveness Criteria for “Safety and Security” (S.1-S.11), including “Fraud information sharing” (S.6) in facilitating a fraud information sharing method and developing an approach consistent with laws that are applicable to securing information that should not be disclosed.
A group under the auspices of the governance framework should work with the relevant work group(s) under the Secure Payments Task Force (SPTF) to recommend and develop methods for fraud detection and fraud reporting (see Recommendation 1). Implementation would be by faster payments solution operators and/or service providers.
The group within the governance framework should further coordinate with the SPTF to develop and implement a method to enable fraud information sharing consistent with applicable laws.
The task force recommends the work commence as soon as possible following the establishment of the governance framework and be ongoing to evolve with potential threats in the faster payments landscape.