Federal Bank Regulatory Agencies Seek Comment to Address Payments and Check Fraud

The federal bank regulatory agencies announced a request for comment on potential actions to help consumers, businesses, and financial institutions mitigate risk of payments fraud, with a particular focus on check fraud. For purposes of the request for information, payments fraud generally refers to the use of illegal means to make or receive payments for personal gain, including scams.

Because payments fraud may involve multiple institutions and payment methods, no single agency or private-sector entity can address payments fraud on its own. Therefore, the agencies are seeking public comment on discrete actions, collectively or independently, to mitigate payments fraud, including check fraud, within their respective bank regulation and payments authorities.

Input is requested on five potential areas for improvement and collaboration:

• 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.

Read more: Request for Information on Potential Actions to Address Payments Fraud