The Federal Reserve is working with payments professionals to research key remote authentication fraud challenges and mitigation efforts. These efforts provide opportunities to build awareness and educate industry stakeholders who are dealing with increasing payments fraud, particularly fraud during identity authentication.
As such, the Federal Reserve recently published a series of three research briefs on the remote authentication landscape in the United States, based on a combination of publicly available industry research and interviews with payments and fraud experts. The briefs describe risks and challenges, opportunities and mitigation tools to build awareness and further educate the industry about reducing this type of fraud.
- Remote Authentication Landscape and Authentication Methods (Off-site): The first brief explores authentication strategies to address new account fraud (NAF), synthetic identity fraud (SIF) and account takeover (ATO) fraud.
- Fraud Types and Authentication for Remote Payment Use Cases (Off-site): The next brief in the series takes a closer look into payment use cases and authentication methods that can help prevent the most common types of remote authentication fraud. The brief discusses the specifics of vulnerabilities and some of the authentication tools the industry applies to help prevent fraud depending on the use case, such as effective Know Your Customer (KYC) compliance for new accounts, risk-based authentication (RBA) tools, payment tokenization and two-factor or multi-factor authentication.
- Authentication Fraud Mitigation Approaches, Key Findings and Recommendations (Off-site): The final brief focuses on approaches and tools to mitigate remote authentication fraud, as well as possible ways the Federal Reserve and industry can work together to improve fraud mitigation, build awareness and engage industry stakeholders.
To learn more about our efforts on remote authentication fraud, explore the full research brief series (Off-site)
To learn more about Fed-conducted research, read the article, “Federal Reserve survey: Study reveals businesses are accelerating plans for faster payments” in this Fed360® issue.