Toolkit Module 3: Scam Scenarios

Classify Whether an Incident is a Scam

Criminals use many different approaches to deceive and manipulate individuals to send payments or share personal information. Increased awareness of these activities can help individuals and organizations protect themselves against financial losses due to scams.

For financial institutions, the ability to classify scams can help support consistent classification and reporting. It also can assist with better identification of trends to help improve detection and mitigation. To assist in this effort, an industry work group of payments and fraud experts developed the ScamClassifierSM model, which uses a series of questions to differentiate and classify scams and attempted scams by category and type.

ScamClassifier Model Image

Scam Classifier

The ScamClassifierSM model supports consistent and detailed classification, reporting, analysis and identification of trends in scams. It uses a series of questions to differentiate and classify scams by categories and types and provides a view of the full impact of scams by including cases that result in authorized payments, as well as unauthorized payments from account access. The model also can be used to capture attempted scams.

SCAM DEFINITION: the use of deception or manipulation intended to achieve financial gain.

STEP 1: CONFIRM SCAM.
Does the case appear to meet the scam definition.
Yes, Move to Step 2.
No, Refer to FraudClassifier to determine payment fraud classification.

STEP 2: CONFIRM AUTHORIZED OR UNAUTHORIZED PAYMENT.
What action resulted from the scam?
Authorized Payment: Authorized party made a payment.
Unauthorized Payment: Authorized Party enabled unauthorized account access.

STEP 3: IDENTIFY THE SCAM CATEGORY.
How was the authorized party deceived or manipulated.
Scam Category: Products or Services.
Buying or selling products or services.
Scam Category: Relationship and Trust.
Someone posing as a business, organization, vendor, agency or trusted party.

STEP 4: SELECT THE SCAM TYPE.
Select the scam type based on the deception used.

  • Merchandise
  • Investment
  • Property Sale or Rental
  • Romance Imposter
  • Government Imposter
  • Bank Imposter
  • Business Imposter
  • Relative/Family/Friend
  • Other Trusted Party

The ScamClassifier model was developed by a cross-industry work group to provide a consistent way to classify and understand how scams occur across the payments industry. The model is not intended to result in mandates or regulations, and does not give any legal status, rights or responsibilities, nor is it intended to define or imply liabilities for loss or create legal definitions, regulatory or reporting requirements. While sharing and use of the ScamClassifier model throughout the industry is encouraged, any adoption of the ScamClassifier model is voluntary at the discretion of each individual entity. Absent written consent, the ScamClassifier model may not be used in a manner that suggests the Federal Reserve endorses a third-party or service.

Test Your Knowledge: Can You Classify These Scam Scenarios?

Challenge yourself to accurately classify various types of example scams using the ScamClassifer model.

Downloadable Resources

Explore these resources for additional information on scam scenarios.

Document TitleFormatReading Time
Business Impostor Scam (PDF)Document1 minutes
Investment Scam (PDF)Document1 minutes
Government Impostor Scam (PDF)Document1 minutes
Bank Impostor Scam (PDF)Document1 minutes
Grandparent Scam (PDF)Document1 minutes
Merchandise Scam (PDF)Document1 minutes
Job/Employment Scam (PDF)Document2 minutes

The scams mitigation toolkit was developed by the Federal Reserve to help educate the industry about scams and outline potential ways to help detect and mitigate this fraud type. Insights for this toolkit were provided through interviews with industry experts, publicly available research, and team member expertise. This toolkit is not intended to result in any regulatory or reporting requirements, imply any liabilities for fraud loss, or confer any legal status, legal definitions, or legal rights or responsibilities. While use of this toolkit throughout the industry is encouraged, utilization of the toolkit is voluntary at the discretion of each individual entity. Absent written consent, this toolkit may not be used in a manner that suggests the Federal Reserve endorses a third-party product or service.