A worldwide group of central banks working to promote the safety and efficiency of payment, clearing, settlement and related arrangements released a global strategy for reducing wholesale payments fraud Tuesday.
In a report, “Reducing the Risk of Wholesale Payments Fraud Related to Endpoint Security,” the Bank for International Settlement’s Committee on Payments and Market Infrastructures (CPMI) sets forth an approach to reducing the risk of wholesale payments fraud related to endpoint security with the broader objective of supporting financial stability. The CPMI includes the Federal Reserve Board and Federal Reserve Bank of New York among its members.
The seven elements of the strategy are designed to address all areas relevant to preventing, detecting, responding to, and communicating about, payments fraud.
The Fed issued a statement supporting the strategy. “A safe, reliable, secure and efficient wholesale payment system, which supports banks, financial market infrastructures, and other financial institutions and service providers, is an essential component of a well-functioning financial system,” it said.
“As noted in the report, each CPMI member central bank has committed to acting as a catalyst for carrying out the strategy in its jurisdiction and actively monitoring progress,” the Fed stated. “Accordingly, Federal Reserve Board staff, in close collaboration with the Federal Reserve Banks, will continue related efforts to advance the security of the wholesale payments ecosystem.”