ACH, Wire and Check Fraud Definitions

New Payments Fraud Work Group Focuses on Better Understanding Fraud

In March 2019, the Federal Reserve announced the establishment of the Fraud Definitions Work Group to help address industry challenges stemming from inconsistent fraud classification and lags in reporting. Qualified individuals submitted an expression of interest form from January 24 to February 14, 2019.

Background

The Federal Reserve commissioned a secondary research (PDF) study in 2018 that 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. In other words, if you do not know where fraud is occurring, you cannot effectively address it.

Work Group Objectives

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

  • Bring together relevant expertise and a range of experience 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

The approach to forming this work group to improve ACH, wire and check fraud definitions was socialized through industry meetings and dialogue, including at the FedPayments Improvement Community Forum (PDF). The Federal Reserve believes 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.

This work effort is led by Federal Reserve executives, including:





Work Group Members

  • Ken Montgomery, Fraud Definitions Work Group sponsor, Federal Reserve System payments security strategy leader, and chief operating officer, Federal Reserve Bank of Boston
  • Jim Cunha, Fraud Definitions Work Group chair and senior vice president of treasury and financial services, Federal Reserve Bank of Boston
  • Gasan Awad, vice president, fraud and anti-money laundering product management, Fiserv
  • Dondi Black, vice president, senior enterprise fraud strategist, FIS
  • Jamey Boone, vice president, fraud risk management, Early Warning Services
  • Nell Campbell-Drake, vice president, Retail Product Office, Federal Reserve Bank of Atlanta
  • Natalie Diana, Senior Counsel, Bureau of the Fiscal Service, Department of the Treasury
  • Carlos Fuentes,vice president of strategy and architecture, Wholesale Product Office, Federal Reserve Bank of New York
  • Adriana Guaderrama, vice president, ACH product manager, First Century Bank
  • Chris Guard, vice president, e-services compliance and fraud, State Employees’ Credit Union of North Carolina
  • Cheryl Gurz, vice president, Citizens Bank
  • Michael Herd, senior vice president, ACH network administration, NACHA – The Electronic Payments Association
  • Rakesh Korpal, executive director, JPMorgan Chase
  • Lee Kyriacou, vice president, real-time payments, The Clearing House
  • Danny Luong, director, fraud technology, PricewaterhouseCoopers
  • Roy Olsen, executive vice president/cashier and human resources director, American National Bank & Trust
  • Carla Palma, senior director, global treasury operations, PepsiCo
  • Al Pascual, senior vice president, research and head of fraud and security, Javelin Strategy & Research
  • Rene Perez, director, product management, Jack Henry & Associates
  • Kim Plaugher, assistant vice president, funds services, Navy Federal Credit Union
  • Sergio Rodriguera Jr., manager, government fintech, SAS
  • Kathy Stokes,director, fraud prevention programs, AARP
  • Eric Tran-Le, vice president, product management, Guardian Analytics

The Federal Reserve will utilize this page to share the progress of this effort and promote feedback opportunities as they become available.

Interested in learning more about Fed efforts to improve fraud definitions

Fraud Definitions Community Interest Group

The Fraud Definitions Community Interest Group remains open to industry stakeholders interested in following and providing input on Fraud Definitions Work Group deliverables. Members of the Community Interest Group receive regular updates on the Fraud Definitions Work Group’s progress and are 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.

Join the Community Interest Group

Resources