Feb. 14 is deadline to ask inclusion in new Fed-led Fraud Definitions Work Group

Payments industry leaders with specific expertise have only until Thursday, Feb. 14, to express their interest in joining a new Fraud Definitions Work Group led by the Federal Reserve and focused on developing recommendations for ACH, wire and check fraud definitions. Organizers expect to announce the work group membership in March.

The work group, led by Federal Reserve executives, will work to develop a recommended fraud classification model to better understand key data points in payment fraud and propose a “roadmap” to encourage broad industry adoption, according to information provided on the Fraud Definitions Work Group and Community Interest Group webpage, part of a website maintained by the Federal Reserve Banks.

The work group, it says, will be composed of 20-30 industry participants selected by the Fed who have in-depth expertise that includes, but is not limited to, fraud prevention, payments risk mitigation, and ACH, wire and check operations including customer servicing aspects. Specifically, the organizers are looking for industry participants who have familiarity and functional expertise in one or more of the following disciplines:

  • Institutional Fraud Governance: Experience developing overarching fraud governance strategy; establishing an organization’s fraud loss and risk tolerances; and advising on compliance, financial and legal risk and mitigation strategies.
  • Fraud Operations and Strategy: Experience interpreting, gathering or compiling fraud data and/or managing fraud and risk prevention strategies.
  • ACH, Wire and Check Operations: Familiarity with channel operational procedures and process flows for handling and rerouting identified fraud or transaction abnormalities; knowledgeable on channel-specific customer service protocol; and understanding of enterprise-wide function and business continuity activities.
  • Fraud Systems Technology: Understanding of connection points between a core demand deposit account (DDA) platform and fraud directories and/or experience defining fraud prevention systems and processes.
  • Risk Intelligence and Analytics (Data Collection and Reporting): Vast involvement in fraud and transaction abnormality detection and reporting and/or familiarity with fraud analytics platform providers.

The Federal Reserve is also forming a Community Interest Group for “stakeholders who are interested in following and providing input on the effort and those that are not selected for the Fraud Definitions Work Group,” the authors note. The interest group, it says, will receive regular updates on the work group’s progress and be notified of opportunities to provide feedback on work group deliverables.

Fraud Definitions Work Group and Community Interest Group webpage