Instant Payments

Fraud reporting by partners

10min

Each instant payment network has specific requirements for reporting suspected fraud, with its own criteria for what qualifies as reportable fraud.

You must notify Cross River about any suspected fraudulent transaction.

Reporting procedure

For all instant payment networks, if an activity meets the network's definition of a fraudulent payment, you must notify Cross River as follows:

1

Send an email to [email protected] with at least the following information, per payment network:

FedNow

RTP

CRNow

A notice that a Reportable Transfer occurred over FedNow

A notice that an unauthorized transaction occurred over RTP

A notice that a fraudulent payment occurred over CRNow

Date of transaction

Date of transaction

Date of transaction

Payment ID or COS reference ID

Payment ID or COS reference ID

Payment ID or COS reference ID

Amount

Amount

Amount

Customer name

Customer name

CRNow customer name payment was sent to/from

Other financial institution that is party to the transaction

Receiving financial institution







Party associated with the Reportable Transfer. Valid values are:

  • S: Sender is the suspected fraudulent party
  • R: Receiver is the suspected fraudulent party
  • B: Both Sender and Receiver are suspected fraudulent parties





2

In accordance with the thresholds outlined in section Incident Report Submission Summary, send an Incident Report, if warranted, to [email protected]. Use the Incident Report form template.

Reporting requirements

Each instant payments network has explicit reporting requirements.

FedNow

Summary

If a funds transfer made through the FedNow network is later identified as potentially fraudulent, you as a Cross River partner must report it to Cross River, enabling us to notify FedNow.

The FedNow Service requires participants to report Reportable Transfers sent over the network. A Reportable Transfer is defined as:

“Any funds transfer completed, in part, through the FedNow Service based on a payment order sent or received by a FedNow Participant that was authorized by the sender at the time of submission but was later determined to potentially involve fraudulent activity. The FedNow Participant must have a good-faith belief that the transaction resulted from fraudulent activity.”

You must ensure compliance with this requirement by reporting any Reportable Transfers to Cross River, regardless of whether you are the sender or receiver of the transfer.

The Clearing House (RTP)

Summary

You as a Cross River partner must report to Cross River any funds transfer using the RTP network that a network user learns afterwards was not authorized by the sender, so we can notify The Clearing House.

We will request that the funds receiver return the funds, flagging the request as due to suspected fraudulent activity.

Under The Clearing House (TCH) RTP Operating Rule II.G.2, Participants must report fraudulent activity involving the RTP System to TCH and the other Participant involved, following the RTP Technical Specifications and Risk Management and Fraud Control Requirements.

Section 5 of the Risk Management and Fraud Control Requirements states:

“A Participant must report any instance of fraudulent activity or suspected fraudulent activity to TCH subject to and in accordance with the RTP Operating Rules and other procedures established by TCH from time to time.”

A fraudulent RTP Payment is a payment the Sending Participant determines was unauthorized by the Sender ("Unauthorized Payment") based on an investigation of how it was initiated.

A payment authorized by the Sender but induced under false pretenses does not qualify as an Unauthorized Payment under this rule.

You must report any suspected unauthorized RTP Payments to Cross River. We take the necessary steps, including notifying the Receiving Participant and submitting a Request for Return of Funds message with the "FRAD" reason code to request a return.

Your timely reporting ensures compliance with TCH rules and facilitates an efficient fraud response.

CRNow

Summary

You as a Cross River partner must report any funds transfer made through Cross River's CRNow network that is identified as fraudulent or unauthorized.

Cross River’s procedures require participants to report fraudulent activity involving the CRNow system.

A fraudulent CRNow Payment is defined as:

“Any funds transfer completed through the CRNow Service, based on any Payment sent or received by a CRNow Participant, that resulted from fraudulent or unauthorized activity.”

You must ensure timely reporting of such transactions to Cross River.

Incident report submission summary

Partners must escalate the following unusual activity to Cross River Bank (CRB) via an Incident Report (IR):

  • Criminal violations involving insider abuse of any amount.
  • Criminal violations of $5,000 or more when a suspect can be identified.
  • Criminal violations of $25,000 or more, regardless of whether a suspect is identified.
  • Transactions aggregating $5,000 or more, if the Partner knows, suspects, or has reason to suspect that the transaction:
    • May involve money laundering or other illegal activity.
    • Is designed to evade the BSA or its regulations.
    • Lacks a clear business purpose or is inconsistent with the customer’s expected activity, with no reasonable explanation after reviewing available facts.

Incident reporting process

  • As a partner, maintain a documented incident reporting process to notify Cross River of potentially unusual or suspicious activity.
  • Escalate any unusual activity within 5 days of detection by submitting a CRB Incident Report to [email protected].
  • Include any relevant supporting documentation in your report.

Timely reporting is critical to ensure compliance and mitigate financial crime risks.

Incident report template

Download our MS Word incident report template as an example: