NRF Releases Updated Retail Fraud Taxonomy

The National Retail Federation today released an updated version of the NRF Retail Fraud Taxonomy, a guide for analyzing fraud activity across retail environments developed collaboratively by NRF, Target Corporation and the Chertoff Group.

"Retail fraud has evolved: It is sophisticated, technology-driven and increasingly affecting different teams across business operations," said NRF Vice President of Artificial Intelligence and Technology Policy Caroline Reppert, who is also director of NRF's Center for Digital Risk & Innovation. "A common fraud taxonomy is the foundation of effective collaboration. By giving retailers, technology providers, financial institutions, law enforcement and policymakers a shared language to describe fraud, NRF's Retail Fraud Taxonomy improves stakeholders' ability to share information, identify emerging threats quickly and drive more targeted, effective solutions."

The Taxonomy is a knowledge base of retail fraud and abuse techniques derived from real-world observations, aimed at enhancing the industry's ability to define, understand, prepare for, mitigate and detect fraud. By standardizing how retail fraud techniques, behaviors, mitigations and detection strategies are described and understood, it serves as an effective tool for education, communication, security assessments, team exercises and resource prioritization.

Today's fraud actors operate across both physical and digital environments. These groups quickly adapt tactics, share knowledge online, use automation and anonymity tools, and often specialize in different stages of fraud operations. This knowledge base enables organizations to better understand how fraudsters operate, how attacks progress through various stages of execution, and where defensive controls can most effectively disrupt fraudulent activity.

The Taxonomy also helps organizations communicate more consistently, improve coordination across teams, share intelligence at scale and strengthen fraud detection and disruption efforts across the broader retail ecosystem.

The updated Version 2.0 NRF Retail Fraud Taxonomy will be presented this afternoon at the 37^th Annual Association of Certified Fraud Examiners Global Fraud Conference in Boston.

The Taxonomy is intended to provide a framework that evolves alongside the retail threat landscape. Download the full report here. An interactive version is available here, courtesy of the Target Corporation.

More information is available by contacting [email protected].

About NRF
The National Retail Federation passionately advocates for the people, brands, policies and ideas that help retail succeed. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation's largest private-sector employer, contributing $5.3 trillion to annual GDP and supporting more than one in four U.S. jobs - 55 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. nrf.com

About Target
Target Corporation (NYSE: TGT) brings together style, design and value to offer a distinct assortment and elevated shopping experience across more than 2,000 U.S. stores and online. Powered by more than 400,000 team members, Target serves millions of families each week and invests in the communities where they live and work to support growth and opportunity for all.

About The Chertoff Group
The Chertoff Group is a global leader in security. Our team of recognized experts helps organizations to manage cyber, physical, regulatory and geopolitical risks; build resilience; navigate evolving regulatory and compliance requirements; and discover opportunities to win business and create value. Together we enable a more secure world. Learn more at Chertoffgroup.com and follow The Chertoff Group on LinkedIn.