As fraud in the wholesale payments system becomes more complex and prevalent, the Basel, Switzerland-based Bank for International Settlement’s Committee on Payments and Market Infrastructures today released a strategy for managing wholesale payments fraud risk.
The strategy outlines seven key elements for reducing the risk of fraud at the endpoints of wholesale payments transactions. These elements include: identifying and understanding the range of risks; establishing endpoint security requirements; promoting adherence to security requirements; providing and using information and tools to improve prevention and detection; responding to potential fraud in a timely manner; supporting ongoing education, awareness and information sharing; and ensuring ongoing coordination with payments system providers, messaging networks and regulators.
Given the broad reach and level of interconnectivity of wholesale payments, the CPMI called for the industry to take a holistic approach to risk management, and work toward sector-wide coordination, noting that “successful operationalization of the strategy depends on operators, participants and other relevant private sector and public sector stakeholders in each jurisdiction engaging actively in and taking ownership of developing and carrying out an appropriate action plan.”
