The Federal Reserve has introduced a new tool known as the ScamClassifier model, aimed at enhancing the payments industry’s capabilities in scam reporting, detection, and mitigation.
Last year, the Federal Trade Commission reported over $10 billion in consumer fraud losses, marking a 14% increase compared to 2022. The ScamClassifier model employs a series of questions to categorize and classify scams by type. According to the Federal Reserve, utilizing this model will allow the industry to sharpen its focus on detection, investigation, and mitigation efforts; streamline scam claims intake; and improve reporting processes.
Mike Timoney, VP of Payments Improvement at Federal Reserve Financial Services, stated, “We are witnessing a groundswell of support for combating this type of fraud, and the ScamClassifier model can assist us in achieving better classification and reporting.”