Financial Institutions in Georgia Join Forces to Combat Online Fraud, Promote Safer Payment Solutions
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In a collaborative effort to stay ahead of cybercriminals and ensure safer payment transactions, the Federal Reserve Bank of Atlanta has partnered with Georgia State University’s Evidence-Based Cybersecurity (EBCS) Research Group to tackle online payments-related financial fraud.
The Three-Year Initiative
The partnership aims to:
- Monitor darknet and encrypted web channels for fraudulent activity
- Identify trends and new types of fraud
- Develop more efficient payment solutions
This initiative comes at a critical time, as innovative payment methods such as digital wallets, mobile payments, and person-to-person payment apps offer convenience but also increase the risk of fraud. Criminals can steal sensitive information like social security numbers, addresses, authentication credentials, and account details to sell them on encrypted web channels, causing widespread harm to the financial system and broader economy.
The Partnership’s Goals
“We believe this partnership will help us better understand fraud from a different perspective and lead to more effective solutions and operational practices around payments innovation,” said Cheryl Venable, Atlanta Fed executive vice president and retail payments product manager. “Our expertise as a payment network operator, supervisor, and researcher will be leveraged to advance the understanding of online fraud.”
Georgia State University’s EBCS Research Group
Led by Director David Maimon, the group will bring its cutting-edge research and behavioral science expertise to the partnership. PhD students and researchers will:
- Monitor online criminal markets for payments-related activity
- Document trends
- Identify new types of fraud
- Support a better understanding of crimes surrounding new payment types
Sharing Findings and Exploring Digital Assets
The findings from this research will be shared within the Federal Reserve System and with the payments industry, helping to inform policy and drive innovation in the fight against online fraud. The partnership will also explore the potential impact of digital assets like central bank digital currencies on online criminal markets in other countries.
“This partnership has the potential to significantly improve the safety of online banking,” said Maimon. “It is a testament to the Federal Reserve’s commitment to staying at the forefront of online fraud prevention and mitigation that they have turned to our research expertise to guide policy.”
The Atlanta Fed’s Strategy
The Atlanta Fed’s strategy to promote safer payments innovation involves collaborating with academic institutions like Georgia State University to conduct joint research and experiments. Further information about the partnership and updates can be found on the Promoting Safer Payments Innovations section of the Atlanta Fed website.