Fraud Definitions Work Group
The Fed’s Fraud Definitions Work Group will work to identify where existing fraud definitions may be leveraged as well as where new or changed definitions would be helpful, develop a recommended fraud classification model to better understand key data points in payment fraud, and propose a roadmap to encourage broad industry adoption of this recommended model. This work effort is led by Federal Reserve executives, including:
- Ken Montgomery – First Vice President and COO of the Federal Reserve Bank of Boston and Secure Payments Strategy leader for the Federal Reserve System;
- Jim Cunha – Senior Vice President of Treasury and Financial Services; and
- Connie Theien – Senior Vice President of Payments Industry Relations.
The Federal Reserve is currently reviewing expressions of interest 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. 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.
We expect to announce the final work group roster in March.
The work group will be composed of 20-30 industry participants selected by the Fed who have in-depth expertise that includes, but is not limited to, fraud prevention, payments risk mitigation, and ACH, wire and check operations including customer servicing aspects. Specifically, selected industry participants will have familiarity and functional expertise in one or more of the following disciplines:
- Institutional Fraud Governance: Experience developing overarching fraud governance strategy; establishing an organization’s fraud loss and risk tolerances; and advising on compliance, financial and legal risk and mitigation strategies.
- Fraud Operations and Strategy: Experience interpreting, gathering or compiling fraud data and/or managing fraud and risk prevention strategies.
- ACH, Wire and Check Operations: Familiarity with channel operational procedures and process flows for handling and rerouting identified fraud or transaction abnormalities; knowledgeable on channel-specific customer service protocol; and understanding of enterprise-wide function and business continuity activities.
- Fraud Systems Technology: Understanding of connection points between a core demand deposit account (DDA) platform and fraud directories and/or experience defining fraud prevention systems and processes.
- Risk Intelligence and Analytics (Data Collection and Reporting): Vast involvement in fraud and transaction abnormality detection and reporting and/or familiarity with fraud analytics platform providers.
Need more information?
Fraud Definitions Community Interest Group
The Fraud Definitions Community Interest Group is 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.
- FedPayments Improvement Community Forum: Fraud Measurement: An ACH and Wire Discussion (PDF) and Summary (PDF)
- Executive Summary: A View of Payment Security Trends, Gaps and Vulnerabilities (PDF)
- Changes in U.S. Payments Fraud from 2012 to 2016: Evidence from the Federal Reserve Payments Study (Off-site, PDF)
- Press Release: Federal Reserve Payments Study finds U.S. payments fraud a small but growing fraction of overall payments (Off-site)
- Talk About Payments Webinar: Federal Reserve Payments Study – Payments Fraud (Off-site)