Fraud and scam intelligence now has the potential to be more powerful with consistent classification across the payments industry when two models from the Federal Reserve are applied to analyze incidents.
The Federal Reserve released a video tutorial to help the payments industry understand the connection points between the FraudClassifierSM model – a set of tools and materials that helps organizations consistently classify fraud – and the ScamClassifierSM model – designed to improve scam reporting, detection and mitigation. When used together, the models 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.
Watch the video below, Advancing Fraud Mitigation: Interactions Between the FraudClassifier and ScamClassifier Models, to learn more about the two classification structures, including four scenarios where they interact based on which version is used as the starting point, and whether the party or payment was authorized or unauthorized.
Join the FedPayments Improvement Community for updates on these initiatives and the Fed’s continued efforts to help modernize the U.S. payment system.