Organizations confronted with a suspicious incident should investigate to determine whether it could be a scam or other type of fraudulent event. The Federal Reserve has two models, the FraudClassifierSM model (Off-site) and the ScamClassifierSM model (Off-site), which, when used together, can help organizations to improve mitigation strategies and internal training through identification of fraud and scam types, enhance reporting, and educate customers on specific trends. While either model can be used on its own, leveraging these models in conjunction can help identify additional critical classification details, avoid the need to answer repetitive questions, and surface actionable information for fraud mitigation.
The Federal Reserve now offers a brief video tutorial, Advancing Fraud Mitigation: Interactions Between the FraudClassifier and ScamClassifier Models. The video explains how both models can be used to categorize four scenarios based on which model is used as the starting point, and whether the party or payment was authorized or unauthorized.
Visit FedPaymentsImprovement.org (Off-site) for more information and to register for full access to the model, including its supporting terms and definitions.
