ACH, Wire and Check Fraud Definitions

Identifying fraud trends today could lead to fewer losses tomorrow

ACH, Wire and Check Fraud Definitions—Better Understanding Fraud Trends

The industry has identified inconsistencies in the classification and reporting of ACH, wire and check fraud data from study to study, and a significant lag between the reporting period and when study results become available. As a result, the industry has a limited capacity to identify and track payments fraud trends on a timely basis. If you don’t know where fraud is occurring, you can’t effectively address it.

Fraud Definitions Work Group

To develop a more consistent and holistic view of terminology used to describe payments fraud in the United States the Federal Reserve is leading a Fraud Definitions Work Group that will:

  • Bring together expertise and diversity of thought from across the payments industry;
  • Develop a recommended fraud classification model that includes detailed definitions and/or categories to better understand key data points in payment fraud; and
  • Propose a roadmap to encourage broad industry adoption of its recommended model

We believe several benefits could be realized by these efforts including the enhanced understanding of fraud trends and more consistency around the classification of fraud incidents, which can lead to improved fraud mitigation, easier collaboration for data sharing for fraud mitigation, and reduced fraud losses.

Qualified individuals were able to submit an expression of interest form January 24 through February 14, 2019; we are currently reviewing these submissions and will select work group members from the pool of interested candidates to ensure diversity of thought and strong expertise across the many needed disciplines.

We expect to announce the final work group roster in March. Individuals not selected for the work group will have the opportunity to view and comment on the work as part of the Fraud Definitions Community Interest Group.

Community Interest Group

The Federal Reserve also formed a Community Interest Group for stakeholders who are interested in following and providing input on the effort and those that are not selected for the Fraud Definitions Work Group. This group receives regular updates on the work group’s progress and is notified of opportunities to provide feedback on work group deliverables.

You can join the Fraud Definitions Community Interest Group by submitting or updating your FedPayments Improvement Community profile and selecting “ACH, Wire and Check Fraud Definitions” as a topic of interest.

Visit the Fraud Definitions Work Group and Community Interest Group webpage to learn more about these engagement opportunities and how to get involved.

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