Fed names 22 to fraud definitions workgroup in payment system project

Twenty-two payments industry leaders and subject matter specialists – from banks, credit unions, payments system vendors, Treasury and others – have been named to the Federal Reserve-sponsored Fraud Definitions Work Group, the latest initiative in the Fed’s strategy for improving the U.S. payment system, the central bank announced Monday.

The Fraud Definitions Work Group seeks to build a recommended payments fraud classification model that includes detailed definitions and/or categories to help the industry better understand key data points and address ACH, wire, and check payments fraud, the Fed said. It said work will begin later this month to examine existing payments fraud definitions and areas where new or changed definitions could be helpful. The work group also will create a roadmap to encourage broad industry adoption of this classification model to improve the consistency and timeliness of available payments fraud data.

The Fed in January outlined the expertise needed to serve on the work group and asked payments experts to submit “expressions of interest.” The Federal Reserve selected work group participants from these submissions and appointed some additional Federal Reserve and industry participants to ensure diversity of thought and strong expertise across the many needed disciplines, it said.

Members of the Fraud Definitions Work Group are:

  • Ken Montgomery, Fraud Definitions Work Group sponsor, Federal Reserve System payments security strategy leader, and chief operating officer at the Federal Reserve Bank of Boston
  • Jim Cunha, Fraud Definitions Work Group chair and senior vice president of treasury and financial services, Federal Reserve Bank of Boston.
  • Gasan Awad, vice president, fraud and anti-money laundering product management, Fiserv
  • Dondi Black, vice president, senior enterprise fraud strategist, FIS
  • Jamey Boone, vice president, fraud risk management, Early Warning Services
  • Nell Campbell-Drake, vice president, Retail Product Office, Federal Reserve Bank of Atlanta
  • Natalie Diana, senior counsel, Bureau of the Fiscal Service, Department of the Treasury
  • Carlos Fuentes, vice president of strategy and architecture, Wholesale Product Office, Federal Reserve Bank of New York
  • Adriana Guaderrama, vice president, ACH product manager, First Century Bank
  • Chris Guard, vice president, e-services compliance and fraud, State Employees’ Credit Union of North Carolina
  • Cheryl Gurz, vice president, Citizens Bank
  • Michael Herd, senior vice president, ACH network administration, NACHA
  • Rakesh Korpal, executive director, JPMorgan Chase
  • Lee Kyriacou, vice president, real-time payments, The Clearing House
  • Danny Luong, director, fraud technology, PwC
  • Roy Olsen, executive vice president EVP/Cashier & Human Resources Director, American National Bank & Trust
  • Carla Palma, senior director, global treasury operations, PepsiCo
  • Al Pascual, senior vice president, research and head of fraud and security, Javelin Strategy & Research
  • Rene Perez, director, product management, Jack Henry
  • Kim Plaugher, assistant vice president, funds services, Navy Federal Credit Union
  • Sergio Rodriguera, manager, government fintech, SAS
  • Kathy Stokes, director, fraud prevention programs, AARP
  • Eric Tran-Le, vice president, product management, Guardian Analytics

The Fed said the group will work collaboratively over the next year with Federal Reserve leaders to formulate recommendations for improving the quality and consistency of automated clearing house (ACH), wire, and check fraud data. It noted that while noncash payments fraud remains a very small fraction of total payments value, it is a large number in absolute terms – approximately $8.3 billion in 2015. “This, combined with the growth of real-time payments, underscores the need to better understand payment confidentiality, integrity, and security threats,” it said.

“The Fraud Definitions Work Group is another step in the Federal Reserve’s efforts to promote the safety, security, and integrity of the U.S. payment system through collaboration with the payments industry,” said David Sapenaro, Federal Reserve System payments strategy director and chief operating officer at the Federal Reserve Bank of St. Louis.

“Understanding payments fraud trends can help us mitigate fraud risk,” said Ken Montgomery, Federal Reserve System payments security strategy leader and chief operating officer at the Federal Reserve Bank of Boston. “However, there often are inconsistencies in the classification and reporting of payments fraud data from study to study and a significant lag between the time that fraud occurs and when it’s reported. In addition, fraudsters continually adapt their attacks as the use of ACH, wire, and checks for innovative faster payments evolves.”

The Federal Reserve also has established the Fraud Definitions Community Interest Group for individuals who are interested in providing input and following the efforts of the Fraud Definitions Work Group. Those interested in being part of this group can learn more and sign up at FedPaymentsImprovement.org.

Federal Reserve announces members of Fraud Definitions Work Group

RR: Feb. 14 is deadline to ask inclusion in new Fed-led Fraud Definitions Work Group (Feb. 13, 2019)