On June 16, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC) issued a joint request for public comment on potential ways to address payments fraud, with a particular emphasis on check fraud.

Recent data from the Federal Trade Commission indicates that noncard payments fraud losses have surged by 271% from 2020 to 2024. Similarly, Suspicious Activity Reports (SARs) related to check, ACH, and wire fraud have increased by 489% over the past decade.

Despite a decline in overall check usage, check fraud has seen a significant rise. Checks can be stolen, altered, or forged, and their physical nature makes them susceptible to theft. Moreover, checks contain sensitive information that can be exploited for other fraudulent activities. The U.S. Department of the Treasury reports a 385% increase in check fraud since the COVID-19 pandemic.

Areas for Improvement and Collaboration

The federal agencies are seeking input on five key areas to enhance collaboration and mitigate payments fraud:

  • External Collaboration: Encouraging partnerships among federal and state agencies, industry stakeholders, and other organizations to develop effective strategies against payments fraud.
  • Education: Enhancing consumer, business, and industry education to raise awareness about payments fraud and promote safe payment practices.
  • Regulation and Supervision: Exploring regulatory and supervisory actions to strengthen defenses against payments fraud, including potential amendments to existing regulations like Regulation CC.
  • Data Collection and Information Sharing: Improving the collection and sharing of payments fraud data to gain a comprehensive understanding of fraud patterns and develop informed strategies.
  • Federal Reserve Banks’ Tools and Services: Expanding the Reserve Banks’ risk management tools and services to better support financial institutions in combating payments fraud.

Stakeholders are invited to submit comments within 90 days from the date of publication of the request in the Federal Register.