The Federal Reserve has developed a tool, called the ScamClassifier model, to help the payments industry improve scam reporting, detection and mitigation.
Last year, more than $10 billion in consumer fraud losses were reported to the Federal Trade Commission, up 14% on 2022.
The ScamClassifier model uses a series of questions to differentiate and classify scams by category and type.
![](/finextra-images/articles/scamclassifier-model.png)
The Fed says that by using the model, the industry can improve the focus for detection, investigation and mitigation; expediate scam claims intake; and improve reporting.
"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.” says Mike Timoney, VP, payments improvement, Federal Reserve Financial Services.