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.
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.