Global: Fed-Backed Working Group Proposes Scam Information Sharing Network for US Payments Industry

A Federal Reserve-backed working group has proposed the establishment of an independent information exchange framework to serve as a centralized hub for scam intelligence across payment networks in the United States.

Addressing the Surge in Fraud Cases

According to Federal Trade Commission (FTC) data, Americans lost over $12.5 billion to fraud in 2024, reflecting a 25% increase from the previous year. Despite this growing threat, real-time access to comprehensive industrywide fraud intelligence remains a challenge for stakeholders within the US payments ecosystem.

To bridge this gap, the Scams Information Sharing Industry Work Group was formed in 2023, bringing together 30 fraud prevention and payments experts to explore solutions for enhancing scam detection and prevention.

Key Recommendations of the Working Group

The group’s newly published recommendations advocate for an information exchange framework that would:

• Connect existing and future fraud intelligence sources to provide a comprehensive view of scam threats, patterns, and tactics.
• Enable payment industry stakeholders to share and access real-time scam-related insights, improving fraud detection efforts.
• Foster industry-wide collaboration by centralizing scam-related data across multiple payment rails.

If adopted, the initiative would require the formation of a governing body—either an industry-led group or coalition—to oversee the framework’s implementation. This body would be responsible for:

• Defining the types of scam-related data to be shared among payment providers.
• Developing a structured engagement plan to encourage participation.
• Identifying existing gaps in scam intelligence sharing and proposing strategies to close those gaps.
• Setting priorities for effective fraud mitigation efforts within the payments industry.

Phased Implementation Approach

The working group recommends a gradual rollout of the information-sharing network, starting with minimum viable functionality. The initial phase would allow organizations to exchange scam-related trend data and insights. In later phases, the system would expand to include:

• Access to scam receiver account information to track fraudulent activities.
• Integration of scam data provided by participants, enabling a more dynamic and responsive fraud prevention system.

Strengthening the Fight Against Payment Scams

By enhancing collaborative fraud intelligence sharing, this initiative has the potential to significantly improve scam detection, response, and prevention across the US financial landscape. If widely adopted, the proposed framework could serve as a critical tool for financial institutions, payment service providers, and regulators in the ongoing battle against payment fraud and financial crime.