Fraud Mitigation Products & Services
Federal Reserve Financial Services (FRFS) provides services designed to assist financial institutions in identifying and reducing payments fraud, offerings that can augment and reinforce an institution’s existing fraud mitigation strategies.
Multiservice Solutions
Payee Name Verification
Financial institutions can verify an intended payee’s name against account and routing information before issuing a payment, which may help reduce instances of authorized push payment fraud. Institutions can also incorporate verification results into other risk models to improve effectiveness and misdirected payments.
Exception Resolution Service
Financial institutions can manage disputes, notifications and requests for additional information through a single service instead of fax, phone, email and mail. Active monitoring and responses from requesting and responding participants streamlines the exception resolution process, supporting faster case handling.
FedACH® Services
FedDetect Anomaly Notification, part of the FedDetect Notification Services suite
This daily monitoring service helps financial institutions supplement their existing detection tools with insights into atypical FedACH activity. It detects anomalies by comparing activity to a financial institution’s historical baselines or by applying industry rules to ACH transactions. Complimentary and premier (fees apply) use cases help financial institutions identify potential anomalies and comply with credit monitoring requirements.
FedACH Risk® Origination Monitoring Service
Originating depository financial institutions can monitor FedACH forward batches tied to their subscribed routing transit numbers and company IDs. They can also tailor monitoring criteria to reflect their specific risk management strategies. Self-administration of monitoring settings allows institutions to align fraud controls with their unique customer profiles.
FedACH Risk RDFI Alert Service
This information-only service alerts a receiving depository financial institution (RDFI) or its account holders to noteworthy conditions in incoming FedACH Service files, batches and entries. It is available to any RDFI that receives FedACH transactions, regardless of the receiving point or file delivery setup
FedPayments® Insights Service
This service gives financial institutions ACH analytics and business intelligence tools to help inform operations, risk management and strategic decisions. Customers can interact dynamically with their ACH data, including government and commercial transactions settled through FedACH Services, to review daily and historical trends and compare their return rates to industry aggregates.
Check Services
Duplicate Check Notification
This daily monitoring service provides early notice of potential duplicate U.S. government and commercial checks across any bank of first deposit that processes through FRFS. Early detection can help recoveries and potentially prevent financial loss before it occurs. The service is available to Check Services subscribers at no additional cost.
FedPayments Reporter Service for Check Services
Financial institutions and their corporate customers receive advance notice reporting, including images of items being presented, to give more time to review items for potential alterations and suspicious endorsements. Advance notice of returns allows financial institutions to potentially reduce risk of loss on deposited checks.
FedNow® Service
Network Intelligence API
Allows a sending financial institution to request receiver account-level data observed over the FedNow Service to help assess the overall risk of a potential payment. By supplementing the data an institution already has, the tool provides a more holistic view of transaction risk.
Account activity thresholds
In addition to individual transaction value limits, this feature allows participants to set velocity and cumulative value controls by customer segment to suit business needs and risk tolerances.
Participant-defined negative lists
Participants can instruct the FedNow Service to restrict transactions to or from accounts they identify. The negative list is not shared across the network, allowing each participant to control its own list of restricted accounts.
Accept without posting (ACWP)
Receiver financial institutions can use ACWP when they have reasonable cause to believe a recipient is not entitled to receive a payment. This option gives institutions additional time to investigate suspected fraudulent activity before accepting a payment order.
Participant fraud reporting
Participants are required to report each fraudulent transaction to the FedNow Service and the other participant that was party to it. The use of the FraudClassifierSM and ScamClassifierSM models helps collect consistent data on fraud and scams.
The Fraud Mitigation Resource Center is educational only and is not intended to provide business or legal advice, nor is it intended to promote or advocate a specific action or risk mitigation strategy. Readers should consult with their own business and legal advisors for specific guidance.