Federal Reserve publishes payments fraud tools

https://www.mobilepaymentstoday.com/news/federal-reserve-publishes-payments-fraud-tools/
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The Federal Reserve has published a set of tools and materials to help organizations classify and understand fraudulent activity within the payments industry.

The model is called the FraudClassifier and was developed by the Fraud Definitions Work Group that is comprised of payment industry fraud experts and members from the Federal Reserve, according to a press release.

Organizations using FraudClassifier can classify fraud independently of payment type, payment channel or other payment characteristics through a series of questions, beginning with who initiated the payment to the authorized party is. Each classification is supported by definitions that allow for consistent classification of fraud across the industry.

The Fraud Definitions Work Group also developed and recommended an industry adoption roadmap, outlining a strategy and potential steps to encourage voluntary industry wide use of the FraudClassifier model.

“The FraudClassifier model can help address the industry wide challenge of inconsistent classifications for fraud involving ACH, wire, or check payments,” said Jim Cunha, secure payments strategy leader and senior vice president at the Federal Reserve Bank of Boston, in the release. “The FraudClassifier model enables payments stakeholders to classify fraud in a simple and similar manner. It can be applied across an organization to help ensure greater internal consistency in fraud classification, more robust information and better fraud tracking.”


Topics: Regulatory Issues, Security, Mobile Payments, Mobile Banking


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https://www.mobilepaymentstoday.com/news/federal-reserve-publishes-payments-fraud-tools/