A uniform framework across the industry to identify and classify fraud might be the first line of defense and a key for Financial Institutions (FIs) to understand which resources would be best to deploy in the never-ending battle against financial fraud.
Two years ago, the Federal Reserve debuted its FraudClassifier model. The model is geared toward addressing inconsistencies in how FIs classify fraud, with the aim of simplifying those classifications.
In the first effort to create a “common language” of fraud shared across banks, and with joint research between PYMNTS and Featurespace, “The State of Fraud and Financial Crime in the U.S.” report reveals the scale and scope of financial crime, both in terms of volume and losses with FIs queried reporting losses of more than $100 million through the past year alone.
The report further highlights specific fraud typologies FIs need to prepare to protect against now and in the future.
Read the full PYMNTS article >> Fed Fraud Classifier Offers Consistent View of Data Across Banks>