Strength in Collaboration

There is no single solution, action, or entity that can alone eliminate the risk of fraud in IIPSs. Each entity can support parallel and joint fraud mitigation efforts that result in more effective outcomes for the ecosystem.

Fraud mitigation actions by one stakeholder often complement, enhance, and inform actions by other stakeholders. Intentional collaboration between ecosystem stakeholders improves fraud mitigation for all.

Regulators

Provide the foundational tone and platforms for fraud mitigation through:

  • Standards, guidelines, and requirements that pertain to IIPSs, DFSPs, and other industry players
  • Forums for ecosystem collaboration

IIPSs

The connective tissue of the payments value chain. IIPSs can support fraud mitigation through:

  • Scheme rules
  • Fraud mitigation tools (for themselves and for the ecosystem)
  • Governance structures, including forums for collaboration

DFSPs

Account providers to end users and participants in IIPSs. DFSPs are best positioned to implement fraud risk controls, including:

  • Customer onboarding and due diligence measures
  • End user fraud education and tools
  • Business and technical practices for transaction risk management
  • Receiver confirmation tools
  • Proper recourse and liability mechanisms

Payment Service Providers

Other entities that participate in the payments value chain, e.g., fintechs, agents, third-party service or technology providers. They can contribute to fraud mitigation through:

  • Appropriate fraud mitigation practices
  • Fraud mitigation technologies and solutions

End Users

Payment senders and receivers. When properly buttressed by the ecosystem with necessary tools, end users can contribute to fraud mitigation through:

  • Payment scam identification
  • Authentication tools use

Others

Various other entities play important roles in the ecosystem, including:

  • Law enforcement entities ensure laws and regulations are followed
  • Industry bodies contribute to forums for collaboration between ecosystem parties
  • Consumer groups capture and advocate for end users

Next Topic in this Section: End Users are Not Liable for Fraudulent Payments