Fraud Definitions Work Group

Payments Fraud Work Group Focuses on Fraud Education

In March 2019, the Federal Reserve announced the establishment of the Fraud Definitions Work Group (FDWG) to help address industry challenges stemming from inconsistent fraud classification and lags in reporting. Qualified individuals submitted an expression of interest form from Jan. 24 to Feb. 14, 2019. View the member list (PDF).

Background

In 2018, the Federal Reserve commissioned a secondary research study titled A View of Payments Security: Trends, Gaps and Vulnerabilities (PDF) 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, which 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
  • 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

  • Gasan Awad, Fiserv
  • Dondi Black, FIS
  • Jamey Boone, Early Warning (Zelle)
  • Nell Campbell-Drake, Retail Payments Office, Federal Reserve Bank of Atlanta
  • Natalie Diana, Bureau of the Fiscal Service, Department of the Treasury
  • Carlos Fuentes, Wholesale Product Office, Federal Reserve Bank of New York (March-June 2019)
  • Adriana Guaderrama, First Century Bank
  • Chris Guard, State Employees’ Credit Union of North Carolina
  • Cheryl Gurz, Citizens Bank (March-October 2019)
  • Mike Herd, Nacha – The Electronic Payments Association
  • Kin Wah Koo, Wholesale Product Office, Federal Reserve Bank of New York
  • Rakesh Korpal, JPMorgan Chase
  • Lee Kyriacou, The Clearing House
  • Danny Luong, PricewaterhouseCoopers
  • Kyle Marchini, Javelin Strategy & Research (July 2019-January 2020)
  • Roy Olsen, American National Bank & Trust
  • Carla Palma, PepsiCo (March-July 2019); XPOLogistics (July 2019-current)
  • Al Pascual, Javelin Strategy & Research, (March-July 2019)
  • Rene Perez, Jack Henry & Associates
  • Kim Plaugher, Navy Federal Credit Union
  • Sergio Rodriguera, Jr., SAS (March 2019-January 2020); Federal Reserve Bank of Boston (January 2020-present)
  • Kathy Stokes, AARP
  • Krista Tedder, Javelin Strategy & Research (January 2020-present)
  • Eric Tran-Le, Guardian Analytics

Fraud Definitions Community Interest Group

Interested in learning more about Fed efforts to improve fraud definitions? Join our Community Interest Group to stay up-to-date and provide input!

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.

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