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.

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06/05/08
8:30 AM
Registration & Continental Breakfast Third Floor Conference Center
9:30 AM
Introduction and Welcome
Gordon Werkema, First Vice President and Chief Operating Officer, Federal Reserve Bank of Chicago
9:45 AM
Keynote Speech
Mark Greene, Chief Executive Officer, Fair Isaac Corporation
10:15 AM
Identifying Security Issues in the Retail Payments System

Talking Points

  • 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?
Moderator
Robert Ledig, Partner, Fried, Frank, Harris, Shriver & Jacobson, LLP
David Poe, Managing Director, Edgar Dunn & Company
Ellen Richey, Chief Enterprise Risk Officer, Visa, Inc.
Lance James, Founder and Chief Technology Officer, Secure Science Corporation
11:45 AM
Luncheon Third Floor Conference Center
1:30 PM
Fraud Containment

Talking Points

  • 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?
Moderator
Bruce Summers, Payment System and Technology Management Consultant
Jeff Schmidt, Consultant
Bob West, Chief Executive Officer, Echelon One
Mallory Duncan, Senior Vice President and General Counsel, National Retail Federation
3:00 PM
Break
3:30 PM
Fraud Loss and Dispute Resolution

Talking Points

  • 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?
Moderator
Christian Johnson, Professor, University of Utah Law School
Panelists
Mark Michelon, Senior Director, E-Commerce Risk and Revenue Protection, Orbitz Worldwide
Duncan Douglass, Partner, Alston & Bird LLP
Charles Docherty, Legal Counsel, MBNA Canada Bank
5:00 PM
Reception Third Floor Conference Center
06/06/08
7:45 AM
Continental Breakfast Third Floor Conference Center
8:30 AM
Welcome and Introduction
Daniel G Sullivan, Senior Vice President and Director of Research, Federal Reserve Bank of Chicago
8:30 AM
Security Risks and Solutions in Emerging Payment Channels

Talking Points

  • 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?
Moderator
Bruce Cundiff, Director of Payments Research, Javelin Strategy and Research
Panelist
David Walker, President and Chief Executive Officer, Elecontronic Check Clearing House Organization (ECCHO)
Panelist
Paul Tomasofsky, President, Two Sparrows Consulting, LLC
Panelist
Kevin Fu, Assistant Professor, University of Massachusetts Amhert
10:00 AM
Break
10:15 AM
Keynote Speech
Introduction
Charles L Evans, President and Chief Executive Officer, Federal Reserve Bank of Chicago
Keynote Speaker
Steve Malphrus, Staff Director for Management, Board of Governors of the Federal Reserve System
11:00 AM
Public and Private Responses to Payments Fraud

Talking Points

  • 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?
Moderator
Williams Roberds, Research Economist and Policy Adviser, Federal Reserve Bank of Atlanta
Panelist
Judith Rinearson, Partner, Bryan Cave LLP
Panelist
Allison Edwards, Director of Product Development, FiServ EFT
Panelist
Marsha McClellan, Chief, Money Laundering and Asset Forfeiture, United States Attorney for the Northern District of Illinois
12:30 PM
Closing Remarks
Sujit Chakravorti, Senior Economist, Federal Reserve Bank of chicago
12:45 PM
Luncheon

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