Conference Agenda: Risk and Fraud in Retail Payments: Detection and Mitigation October 6-7, 2008

Federal Reserve Bank of Atlanta
Conference Center—Azalea Room

The Retail Payments Risk Forum invites you to attend a discussion of the detection and mitigation of risk and fraud in retail payments systems. This is the second in a series of meetings designed specifically to facilitate an interactive, constructive discussion among key members of the regulatory and enforcement communities.


Monday, October 6, 2008
Noon Buffet lunch
1:00 p.m. Opening Comments
Introduction of the Retail Payments Risk Forum, Plan for the Conference, and Participant Introductions

Richard Oliver, Executive Vice President, Retail Payments Office, Federal Reserve Bank of Atlanta
Cliff Stanford, Assistant Vice President, Retail Payments Risk Forum, Federal Reserve Bank of Atlanta
1:45 Changing Roles and Risk Implications of Third Parties in Payment Systems (ACH and Check)
As payment supply channels evolve, the risk of loss for payment fraud is shifting among participants, creating challenges for risk management programs. Our panelists will discuss the current environment and whether there is a need for increased scrutiny over the roles payment participants assume.

Roy DiCicco, JP Morgan Chase, and Chairman, NACHA Risk Management Advisory Group
Carter Messick, Office of the Comptroller of the Currency
Claudia Swendseid, Senior Vice President, Financial Services Policy Committee, Federal Reserve Bank of Minneapolis

James McKee, Senior Vice President, Federal Reserve Bank of Atlanta

3:15 Break
3:30 Implications of Regulatory Enforcement Actions—Level-Setting Discussion and Debate
Recent regulatory enforcement actions addressing payment risk management issues may set new precedents and alter the risk management and enforcement landscape. What are the implications for banks? For consumers? For the payment systems themselves? What are the appropriate remedies? Are the existing safeguards to prevent these incidents adequate? What should the regulatory and law enforcement communities do to prevent and detect such risks in the future? These and other relevant questions will be presented for discussion.

Elliot Burg, Assistant Attorney General, State of Vermont
Jay Lerner, Assistant Chief for Strategy and Policy, Fraud Section, Criminal Division, U.S. Department of Justice
Jonathan Fink, Special Counsel, Office of the Comptroller of the Currency

Richard Fraher, Assistant General Counsel, Federal Reserve Bank of Atlanta

5:30 Reception
Tuesday, October 7, 2008
7:30 a.m. Continental Breakfast
8:00 Consumer Issues in a Changing Environment
What is the impact on consumers impacted as banks allocate risks in payment transactions, particularly involving C21 checks and the evolving ACH? What challenges exist in adapting payment costs/risk allocations and shifts to consumer burdens in a rapidly converging/evolving payment system? What should bank supervisors and law enforcement focus on in this environment? Given that banks see fraud as a cost of doing business and seem willing in some cases to shift those costs to consumers, what can the regulators/enforcers do to ensure that this shift doesn't go too far? What tools can regulators and enforcers use to gather information about consumer impacts?

Mark Budnitz, Professor, Georgia State University College of Law
J. Reilly Dolan, Assistant Director, Division of Financial Practices, Federal Trade Commission

Cliff Stanford, Federal Reserve Bank of Atlanta

9:00 Brainstorming, Debate, and Action
This session will provide the participants an opportunity to collectively provide input and discussion of a few key questions, including:

  • Do regulators and law enforcement understand and pay adequate attention to retail payment risk and fraud issues?
  • What information is most needed to help regulators and enforcement do their jobs?
  • What are the areas of best opportunity to improve detection and mitigation of retail payment risk and fraud?
  • How well do we collaborate? What are the obstacles? What can we do better?
  • What do you want to see the Retail Payments Risk Forum do?
Noon Lunch and closing conference summary

Cliff Stanford, Federal Reserve Bank of Atlanta

Note: This will be a working lunch session to allow for an opportunity to collect and summarize the group's input, so it is recommended that you plan travel accordingly.