The Federal Reserve recently hosted a webinar featuring the FraudClassifier℠ model. The model was developed by the Fraud Definitions Work Group to help address the industrywide challenge of inconsistent classifications for fraud involving ACH, wire or check payments.
“In order to be able to effectively fight fraud, or even know where to begin, you have to first understand where fraud is occurring and the tactics used by fraudsters. However, we are not in a position to do so quickly or effectively due to the lack of consistent fraud definitions across the industry,” said Mike Timoney, vice president for secure payments with the Federal Reserve Bank of Boston. “With the model, we are hoping to create something that allows the industry to understand the extent and nature of fraud involving payments and compare data in a way that we are all speaking the same language on fraud.”
Over 600 participants from across the payments ecosystem joined the webinar to hear how the model provides an intuitive approach to classifying fraud, as well as the collaborative approaches used to create and validate the model. Assistant vice president for secure payments, Andrés Rapela, walked participants through the model and each classification path, providing example scenarios to help explain the intent of the classifications. He also shared insights from the Industry Adoption Roadmap and the projected benefits of voluntary model adoption.
A recording of the July 15 webinar is available below.