The Federal Reserve has introduced the FraudClassifierSM model, which can enable all payments stakeholders to classify fraud in a simple and similar manner.
The FraudClassifier model was developed to help address the industrywide challenge of inconsistent classifications for fraud involving ACH, wire or check payments. Its key advantage is the ability to classify fraud independently of payment type, payment channel or other payment characteristics.
Adopting the FraudClassifier model can help organizations:
Facilitate consistent fraud information and tracking
Improve customer education
Understand fraud across payment types and fraud methods
Speak the same language about fraud
If adopted across the payments industry, the FraudClassifier model can facilitate a common fraud language and help us work together to better identify and fight fraud, fostering a safer payment system for all.
View our interactive FraudClassifier model to explore the different classification paths. You can also register to access educational resources and support tools for the model as a member of the FedPayments Improvement Community, such as a downloadable version of the model and supporting definitions, as well as a fraud classification tool.