CPMI Proposes Strategy to Reduce the Risk of Wholesale Payments Fraud
CPMI published a consultative document proposing the strategy to reduce risk of wholesale payments fraud related to endpoint security. The proposed strategy, which is developed by the CPMI Task Force, is aimed to help focus industry efforts to tackle the increasing threat of wholesale payments fraud related to endpoint security. The strategy aims to improve the security of wholesale payments that involve banks, financial market infrastructures, and other financial institutions. Comments on the proposed strategy should be submitted by November 28, 2017.
The strategy sets out seven elements designed to address all areas relevant to preventing, detecting, responding to, and communicating about wholesale payments fraud. It stresses the importance of understanding the full range of risks and calls on the relevant public and private sector stakeholders to take a holistic and coordinated approach. The seven elements of the strategy are to identify and understand the range of risks; establish endpoint requirements; promote adherence; provide and use information and tools to improve prevention and detection; respond in a timely way to potential fraud; support ongoing education, awareness, and information-sharing; and learn, evolve, and coordinate.
The stocktaking of current practices undertaken by the task force revealed knowledge gaps and inconsistent approaches among other weaknesses. As a result, potentially important opportunities to strengthen the wholesale payment ecosystem were identified. As per CPMI Chairman Benoît Cœuré, "Wholesale payments fraud is becoming increasingly sophisticated and is expected to evolve further. We need to move fast, and together, to guard against any loss of confidence in the system." After the consultation, CPMI plans to develop guidance on each of the seven elements to help operators and participants of payment systems and messaging networks as well as their respective supervisors, regulators, and overseers improve endpoint security.
Related Link: Consultative Document (PDF)
Comment Due Date: November 28, 2017
Keywords: International, PMI, Wholesale Payments Fraud, Endpoint Security, CPMI
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