On July 15, the Federal Reserve hosted a webinar featuring the newly introduced FraudClassifier model (Off-site). The model was developed by the Fraud Definitions Work Group (Off-site) to help address the industrywide challenge of inconsistent classifications for fraud involving Automated Clearing House (ACH), wire or check payments.
In order to be able to effectively fight fraud, or even know where to begin, you have to first understand where fraud is occurring and the tactics used by fraudsters. However, we are not in a position to do so quickly or effectively due to the lack of consistent fraud definitions across the industry. With the model, we were hoping to create something that allowed the industry to understand the extent and nature of fraud involving payments and compare data in a way that we were all speaking the same language on fraud.
Federal Reserve Bank of Boston
Over 600 participants from across the payments ecosystem joined the webinar to hear how the model provides an intuitive approach to classifying fraud and the collaborative approaches used to create and validate the model. Assistant Vice President for Secure Payments Andrés Rapela walked participants through the model and each classification path, providing example scenarios to help explain the intent of the classifications. He also shared insights from the Industry Adoption Roadmap (Off-site) and the projected benefits of voluntary model adoption.
Watch the recording below and register for access to the FraudClassifier model (Off-site) and supporting resources. Follow our FedPayments Improvement accounts on Twitter (Off-site) and LinkedIn (Off-site) to stay informed about our ongoing efforts toward the future of payments.
