Payments Security

Fighting Fraud with the FraudClassifier Model

The FraudClassifierSM model was released in June 2020 to help organizations speak the same fraud 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 is also inclusive of clear definitions for key terms to promote consistent fraud classification.

You may have previously attended a Federal Reserve hosted webinar about the model or engaged with us at an industry event, and today, we are sharing another way to learn more. In the time it takes to enjoy a cup of tea or coffee, watch this new video for a comprehensive overview of the model, including a step-by-step walk-through of its classification paths and supporting definitions.

The Fed is committed to encouraging voluntary industrywide adoption of the model, and continues to engage trade associations, financial institutions, service providers and other organizations on the model’s value and benefits.

Explore an interactive version of the model and be sure to sign up for access to additional educational resources and support tools.

“FraudClassifier” is a service mark of the Federal Reserve Banks. A list of marks related to financial services products that are offered to financial institutions by the Federal Reserve Banks is available at FRBservices.org.

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.