Securing Remote Payments - October 29, 2013

Tuesday, October 29, 2013
8:00 a.m. Continental breakfast and networking
8:45 Welcome and introductory remarks
Douglas King, Payments Risk Expert, Atlanta Fed Retail Payments Risk Forum
8:50 Overview of the day
Paul Tomasofsky, President, Secure Remote Payment Council
9:00 Opening remarks
Marie Gooding, First Vice President and Chief Operating Officer, Federal Reserve Bank of Atlanta
9:30 Panel 1: State of the Industry—Where Is the United States with Online Authentication and Fraud? PDF icon
IT security personnel protecting either online merchants or financial institutions' online banking channels are kept awake by the same questions: Where is the next big online transaction fraud attack coming from, and what can we do to prevent it? What are the best practices in to identify my customer, and how effective are they in preventing fraud?

This panel will discuss the state of online fraud in the United States and explore the solutions that merchants and financial institutions use to distinguish a legitimate customer from a fraudulent one—such as basic user ID and password, biometrics, geolocation, neural network behavior scoring, and challenge questions. The panel will offer their perspectives on the effectiveness of current solutions, which solutions show the most promise, and whether we will ever get to a fraud-proof, multi-factor solution that can secure consumers either in a federated or solitary manner.

Mike Keresman, Chief Executive Officer, President, and Chairman, Cardinal Commerce (presentation) PDF icon
Tom Ruback, Vice President, Pennsylvania State Employees Credit Union
Rick Van Luvendar, Vice President, First Data

Moderator: Dave Lott, Payments Risk Expert, Atlanta Fed Retail Payments Risk Forum
11:00 Break and networking
11:30 An Intersection of Remote Payments—Consumers, Merchants, and Financial Institutions PDF icon
George Peabody, Senior Director, Glenbrook Partners LLC

Remote commerce transaction volume—whether initiated by a mobile phone, tablet, or computer—continues to experience rapid growth. Along with this growth, there has also been growth in fraud because of the unique authentication challenges not experienced in brick-and-mortar channels. What are consumers' perceptions and concerns about fraud in remote channels, and how do these affect their shopping habits? How can merchants make payments safer while ensuring the smoothest customer experience? What role can financial institutions (FIs) play to ensure that consumers have safe and convenient payment choices for remote transactions? What technologies and strategies are being deployed by merchants and FIs to improve the consumer experience and safety of the payment transaction?

Consumer education has been identified as a key component in increasing consumer's comfort level with remote payments, but what group is willing to assume that responsibility and related expense? Today's speaker will explore the intersection of consumers, merchants, and financial institutions for remote payments, discussing consumers' remote shopping views and concerns along with the role merchants and financial institutions play in ensuring a smooth and safe shopping experience.
12:15 p.m. Lunch
1:30 Panel 2: Developments in Mobile Payments Technology
A variety of technologies have emerged to support mobile payments, with competing technologies that include near-field communication, QR codes, and the cloud. While consumers have widely adopted mobile phones, the widespread adoption of mobile payments greatly depends on ease of use by the consumer and ease of implementation by merchants and financial institutions. Usability remains a key factor in determining which method of authentication to implement, particularly given the wide range of payment technology choices. Further complicating these choices is the imperative to support dynamic authentication as data security and fraud protection become increasingly important in the online and e-commerce environments.

The business model for mobile payments must address the needs of all stakeholders plus factor in the operational challenges, security necessities, and regulatory requirements. The mobile wallet (a digital version of the leather one) is a fundamental component, providing the inextricable link to building customer relationships. This session will address the latest developments in technologies supporting mobile payments and the factors contributing to widespread adoption.

Dekkers Davidson, Chief Executive Officer, Merchant Customer Exchange (MCX)
Dave Fortney, Senior Vice President, The Clearinghouse
Annmarie "Mimi" Hart, Chief Executive Officer, MagTek
Simon Pugh, Head of Payments, ISIS

Moderator: Susan Pandy, Director, Federal Reserve Bank of Boston
3:00 Break and networking
3:15 Panel 3: How Can the Industry Work Better Together to Secure the Future of Remote Payments?
Improving the authenticity of user-initiated remote payments has been a problem waiting for a solution since the earliest days of mail and telephone orders. The Internet and mobile channels have merely magnified the fundamental design flaws with our "card present"-centric system. System flaws and governance gaps together with the need to recalibrate the financial elements for all the stakeholders continue to present problems that prevent the industry from developing and adopting new security solutions. In this panel discussion, a group of industry veterans will address these issues and offer their suggestions on what needs to change to finally bring real solutions to the segment.

Terry Dooley, Chief Information Officer, SHAZAM (presentation) PDF icon
Douglas Nielson, Vice President, U.S. Bank (presentation) PDF icon
Chris Priebe, Treasury Director, Southwest Airlines (presentation) PDF icon
John Sheets, Senior Business Leader, Fraud Risk and Authentication, Visa

Moderator: Mike Strada, Group Manager, Debit Relations and Strategy, Chase Paymentech
4:45 Closing remarks and adjournment
5:00 Networking reception
Federal Reserve Bank of Atlanta Monetary Museum