Comments on ways federal banking regulators can help consumers, businesses, and financial institutions mitigate payments fraud risk – particularly check fraud risk – are due to the agencies Sept. 18, according to a recent Federal Register notice.
In their joint request for information (RFI), the Federal Deposit Insurance Corp. (FDIC), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) cite Federal Trade Commission (FTC) data that shows a 271% increase in reported noncard payments fraud between 2020 and 2024. They also cite a 489% rise in suspicious activity reports (SARs) filed related to check, ACH, and wire fraud between 2014 and 2024, as reported by the Financial Crimes Enforcement Network (FinCEN).
The agencies said the rise in check fraud is “particularly notable” given reported overall decreases in check usage.
The RFI, published in the June 20 Federal Register, presents 26 questions for input across five potential areas for improved mitigation of payments fraud:
- external collaboration among the agencies, Federal Reserve Banks, and industry stakeholders;
- consumer, business, and industry education by the agencies and Federal Reserve Banks to educate about payments fraud;
- regulation and supervision to mitigate payments fraud, including opportunities the Board may have related to check fraud;
- payments fraud data collection and information sharing; and
- Federal Reserve Banks’ operator tools and services to reduce payments fraud.
Noting that no single agency or entity can address payments fraud on its own, the regulators said they are seeking comments “on discrete actions, collectively or independently, to mitigate payments fraud, including check fraud, within their respective bank regulation and payments authorities.” They said they will also continue to seek opportunities for collaboration across other state and federal agencies.
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