Federal Reserve Financial Services recently polled nearly 250 risk management professionals to better understand the challenges they face with payment system risk. In a departure from the 2021 survey (PDF), where cybersecurity was the top concern in payments risk management, the Key Findings from the Federal Reserve Financial Services Survey of Risk Officers (2022) (PDF) found that external fraud was the top operational risk. Other key findings include:
- When asked what impacts their payments risk profile at increasing levels, one in four respondents cited cybersecurity and political (compliance and legal) uncertainty.
- Fraud increases due to physical forgery and digitally originated payments reflect the broader industry move to doing more business in person and virtually, respectively.
- When asked about fraud more organizations had experienced fraud attempts in debit, check and non-bank payment apps.
- Most financial institutions are planning to increase their risk/fraud tool investment by at least 5% in the next two years.
This information can provide insights on the risk management landscape for 2023 and help your institution improve risk management across your organization. Find more risk management resources in the Risk Management Toolbox.