Federal Reserve Releases ScamClassifier Model to Combat Rising Scams


New Tool Aims to Stamp Out Scams

Federal Reserve Releases ScamClassifier Model

Thursday, June 13, 2024

The Federal Reserve, in collaboration with a working group of payments and fraud experts, has announced the release of a new weapon in the fight against financial fraud: the ScamClassifier Model. This innovative tool is designed to help organizations improve their ability to report, detect, and mitigate scams, ultimately protecting consumers and businesses alike.

Scams are a growing threat, with the Federal Trade Commission reporting over $10 billion in consumer fraud losses in 2023 alone. The ScamClassifier Model addresses this critical issue by providing a standardized framework for classifying scams and attempted scams.

"Scams are a hot topic across the payments industry and within many organizations," said Mike Timoney, vice president of payments improvement at the Federal Reserve Financial Services. "We are seeing a groundswell of support for fighting this type of fraud, and the ScamClassifier model can help us do so through better classification and reporting."

Benefits of the ScamClassifier Model

The ScamClassifier Model offers a range of advantages for organizations that choose to adopt it:

  • Improved Focus on Scam Mitigation: By consistently classifying scams, organizations can dedicate resources more effectively to address specific scam types.
  • Expedited Scam Claim Intake: The model can streamline the process of handling scam claims, ensuring faster investigation and resolution.
  • Enhanced Scam Reporting: By providing standardized data on scam categories and types, the model facilitates better reporting and trend detection, allowing organizations to measure the impact of scams and benchmark against industry trends.

Voluntary Adoption and Easy Integration

The ScamClassifier Model is a voluntary tool that organizations can integrate into their existing scam classification and case management systems. The Federal Reserve encourages financial institutions and other stakeholders to evaluate their current processes and consider how the model can enhance their anti-fraud efforts.

Additional Resources

For more information on the ScamClassifier Model, including its supporting definitions, example scenarios, and access to the model itself, please visit the Federal Reserve Banks website.

By working together and leveraging tools like the ScamClassifier Model, we can create a safer and more secure financial environment for everyone.


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