The FraudClassifier model (Off-site) was released in June 2020 to help organizations speak the same language and obtain a holistic picture of fraud involving payments. Its scope includes both authorized-party and unauthorized-party fraud, providing the ability to classify multiple fraud scenarios. The model also includes clear definitions of key terms to promote consistent fraud classification.
In the time it takes to enjoy a cup of tea or coffee, watch the new video below for a comprehensive overview of the model, including a step-by-step walk-through of its classification paths and supporting definitions.
The Federal Reserve is committed to encouraging voluntary industrywide adoption of the model (Off-site), and continues to engage trade associations, financial institutions, service providers and other organizations on the model’s value and benefits.
Sharing and use of the FraudClassifier model throughout the industry is encouraged; any adoption of the FraudClassifier model is voluntary at the discretion of each individual entity. The FraudClassifier model is not intended to result in mandates or regulations, and does not give any legal status, rights or responsibilities, nor is the FraudClassifier model intended to define or imply liabilities for fraud loss or create legal definitions, regulatory or reporting requirements. Absent written consent, the FraudClassifier model may not be used in a manner that suggests the Federal Reserve endorses a third-party product or service.