2008 Payments Conference — Payments Fraud: Perception versus Reality
The Federal Reserve Bank of Chicago hosted its eighth payments conference on June 5–6, 2008, at the Chicago Fed. The conference, which highlighted threats to the security of the payments system and explored solutions to those challenges, covered such topics as:
- Identifying security issues in the retail payments system;
- Preventing and containing payments fraud;
- Allocating losses when payments fraud occurs;
- Exploring fraud in emerging payment channels; and
- Evaluating public and private responses to payments fraud.
- What are the main security threats to retail payments?
- What are the potential costs of payments fraud and of solutions to guard against it?
- What role, if any, should public authorities play to protect payment system participants from these threats?
- What are the most common forms of retail payments fraud?
- What are the most effective fraud reduction tools, and how have these tools evolved to support "real time" payments?
- How do payment providers and merchants balance fraud risk and consumer convenience?
- Who is responsible for mitigating fraud in the payments system, and what are the consequences of that responsibility?
- How are losses allocated when fraud occurs?
- Do current fraud resolution measures distort incentives for payment system participants to adequately secure payment information?
- Do new payment channels, such as mobile, electronic images of checks and decoupled debit, entail different fraud risks?
- Are new tools necessary to minimize risks associated with emerging payment platforms?
- Do these new channels provide any security features that mitigate risk in the payments system?
- How can the government define its role in fraud containment without stifling innovation?
- Should different payment instruments have similar laws and regulations governing them?
- Have standards been an effective tool in combating payments fraud?