www.marktreichel.com https://www.linkedin.com/in/mark-treichel/ Episode: Fighting Payments Fraud - Federal Banking Agencies Launch Major Initiative Episode Summary Three major federal banking agencies have joined forces to combat the explosive growth in payments fraud across America. In this episode, we break down the comprehensive Request for Information issued by the OCC, Federal Reserve, and FDIC on June 20, 2025, seeking public input on how to better protect consumers, businesses, and financial institutions from fraud schemes. Key Takeaways 🚨 Alarming Statistics: Non-card payments fraud losses increased 271% between 2020-2024Suspicious Activity Reports for check, ACH, and wire fraud up 489% since 2014Check fraud alone has risen 385% since COVID-19Check fraud accounts for 30% of all fraud-related SARs filed in 2023💰 Financial Impact: Fraud reports for payments apps, bank transfers, wire transfers, and checks resulted in $2.99 billion in losses in 2024, up from $806 million in 2020Five Key Areas Federal Agencies Are Targeting External Collaboration - How can stakeholders work together more effectively?Education - Better fraud prevention education for consumers, businesses, and industryRegulation & Supervision - Potential regulatory changes and clearer guidanceData Collection - Standardizing and centralizing fraud data sharingReserve Bank Tools - Enhanced fraud detection and prevention servicesNotable Quotes "Payments fraud has the potential to erode public trust in—and undermine the safety, accessibility, and efficiency of—the nation's payments system, upon which the U.S. financial system depends.""No agency or private-sector entity can address payments fraud on its own."Payments fraud data is currently "collected in an incomplete, non-standardized, ad hoc, and fragmented way."What's at Stake Check Vulnerability: Paper checks contain sensitive information including account numbers, routing numbers, addresses, and signatures that criminals can exploitMulti-Institution Schemes: Fraud often involves multiple banks and payment methods across different regulatory jurisdictionsTrust in the System: Continued fraud growth threatens confidence in the entire U.S. payments infrastructureRegulatory Focus Areas Regulation CC Changes The Federal Reserve is considering amendments to funds availability rules, asking whether: Technological advances allow for shorter hold periodsCurrent fraud detection capabilities justify faster fund accessBetter dispute resolution mechanisms are neededIndustry Pain Points Banks struggle with interbank disputes over fraudulent check liabilitySmall community banks need additional fraud prevention resourcesCurrent data sharing restrictions limit collaborative fraud fightingWhat Happens Next Comment Deadline: September 18, 2025 Who Can Participate: Banks and credit unionsFintech companiesConsumer advocacy groupsTechnology providersPayment processorsAnyone affected by payments fraudQuestions Agencies Want Answered What technological solutions work best for fraud prevention?How can fraud education be more effective?Should Reserve Banks require fraud reporting across all payment rails?What barriers prevent better data sharing between institutions?How can confirmation of payee services reduce fraud?Why This Matters to You Whether you're a banking professional, fintech entrepreneur, or consumer who's experienced fraud, this initiative could reshape how America fights payments fraud. The agencies are serious about getting input from all stakeholders to build a more secure payments ecosystem. Resources Federal Register Document: Vol. 90, No. 117, June 20, 2025, pages 26293-26298Comment Submission: Multiple agencies accept comments through regulations.gov and agency websitesAgency Contacts: Specialized fraud and payments policy teams at OCC, Federal Reserve, and FDICEpisode Length Approximately 10 minutes Tags #PaymentsFraud #BankingRegulation #FederalReserve #OCC #FDIC #CheckFraud #Fintech #PaymentSecurity #RegulatoryPolicy #FinancialCrimes This episode is based on official federal regulatory documents. For the most current information, consult the Federal Register and agency websites. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone! We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out. Hire us and gain: • Peace of mind during your exam process • Insider knowledge of NCUA procedures and expectations • Strategies to address potential issues before they become problems • Continuous access to our extensive subject matter expertise With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination. Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.
