In today’s fast-moving digital payments landscape, security is non-negotiable, especially for systems like FedLine, which provide critical access to the Federal Reserve’s financial services. FedLine is an organization’s gateway to process Fedwire funds transfers, ACH originations and settlements, or FedNow transactions, and it must be safeguarded with diligence, precision, and oversight.
What Is FedLine?
FedLine is a suite of secure access solutions used by financial institutions to interact with the Federal Reserve Bank's payment and information services, which include:
- FedLine Web – Browser-based access for basic reporting and messaging
- FedLine Advantage – Rich client software used for funds transfers and ACH
- FedLine Command / Direct – API-based or file-based high-volume access for larger institutions
If your organization transmits payments, monitors liquidity, or reconciles balances through the Federal Reserve, it is using one of these channels.
Why FedLine Security Matters
Because FedLine connects directly to the core payment infrastructure, any compromise in its ecosystem can have widespread financial and reputational consequences. The recent introduction of FedNow Instant Payments raises the stakes now that transactions are settled in real time and cannot be reversed.
This is why the Federal Reserve implemented the FedLine Solutions Security Resiliency Assurance Program, which mandates a strong security posture for all FedLine users.
Core FedLine Security Requirements
The Federal Reserve outlines specific technical and procedural controls to protect FedLine access. These include:
- Multi-Factor Authentication (MFA): Required for all users accessing FedLine systems.
- Hardware Security Modules (HSMs): Provide secure key storage for cryptographic operations.
- Role-Based Access Control (RBAC): Ensures users only have access to what they need.
- Device Hardening: Only registered and compliant devices may access the system.
- Audit Logging and Monitoring: Activity must be tracked to detect anomalies and support compliance.
Top Threats to FedLine Security
FedLine security risks mirror broader cyber threats, but have higher-stakes implications:
- Credential Theft and Phishing: Attackers can exploit weak credentials to initiate fraudulent transfers.
- Insider Misuse: Improper access management can lead to accidental or malicious misuse.
- Malware and Endpoint Vulnerabilities: Compromised devices can serve as attack vectors.
- Cryptographic Key Mismanagement: Poor handling of digital certificates or hardware security modules (HSMs) may weaken security controls.
Staying Compliant with FedLine Security
The FedLine Solutions Security and Resiliency Assurance Program is a Federal Reserve requirement for institutions accessing services through FedLine. Each year, financial institutions and third-party service providers must:
- Identify a designated FedLine security Point of Contact
- Complete a FedLine-specific information and data security Self-Assessment
- Submit an attestation affirming compliance with the Federal Reserve’s FedLine Security Control Objectives
NOTE: Failure to complete the annual Self-Assessment and submit the attestation or inadequate FedLine security controls could result in restricted system use, access, or regulatory action.
Best Practices for FedLine Security
Below are key steps your institution should take to strengthen its FedLine security posture:
- Educate all FedLine users on proper use and threat awareness.
- Regularly review and update user access rights.
- Decommission credentials immediately when staff leave the organization.
- Enforce patching and antivirus protocols on FedLine-connected devices.
- Perform internal audits ahead of annual attestation submission.
- Secure and test digital certificates, HSMs, or cryptographic modules.
- Maintain backups of authentication credentials and configuration settings.
The Role of Your FedLine Security Point of Contact
Every institution should designate a FedLine Security Point of Contact (POC) to oversee all FedLine activity and the security program. This person is responsible for:
- Managing user credentials and access rights
- Overseeing endpoint security risk and compliance
- Pulling together resources, gathering all relevant documentation to perform the annual security Self-Assessment, and ensuring the attestation is filed by 12/31 of each calendar year.
- Responding to security incidents related to FedLine solutions.
Their leadership and vigilance are essential to your organization’s FedLine Security compliance and operational resilience.
FedLine and Instant Payments: Why FedLine Security and Resiliency Is Even More Critical Now
The Federal Reserve’s real-time payment network (FedNow) requires organizations to establish FedLine access to participate. Because these transactions are irrevocable and settle immediately, secure access to FedLine is crucial for:
- Ensuring availability of systems 24/7/365
- Preventing transmission of unauthorized payments
- Supporting real-time fraud monitoring
In other words, FedLine security = payment integrity.
Next Steps and Resources
FedLine is more than just a payment systems network; it is a critical part of your organization’s technology infrastructure and is your lifeline to the U.S. payments system. Securing FedLine should be a shared priority across the organization for information technology, operations, and compliance teams.
As we approach 4Q 2025, now is the time to bring your EUACs and internal stakeholders together to complete your annual FedLine Security Self-Assessment and submit your attestation to avoid missing this crucial deadline. Recommended resources include: