Fighting Payments Fraud: A Deep Look into Federal Banking Agencies' New Initiative

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Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

Credit Union Exam Solutions Inc.

115 episodes

4 days ago

This podcast provides you the ability to listen to new regulatory guidance issued by the National Credit Union Administration, and occasionally the F D I C, the O C C, the F F I E C, or the C F P B. We will focus on new and material agency guidance, and historically important and still active guidance from past years that NCUA cites in examinations or conversations. This podcast is educational only and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated. We also have another podcast called With Flying Colors where we provide tips for achieving success with the N C U A examination process and discuss hot topics that impact your credit union.

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Education

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Fighting Payments Fraud: A Deep Look into Federal Banking Agencies' New Initiative

Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

8 minutes

4 months ago

Fighting Payments Fraud: A Deep Look into Federal Banking Agencies' New Initiative

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 2020-2024
Suspicious Activity Reports for check, ACH, and wire fraud up 489% since 2014
Check fraud alone has risen 385% since COVID-19
Check 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 2020

Five Key Areas Federal Agencies Are Targeting

External Collaboration - How can stakeholders work together more effectively?
Education - Better fraud prevention education for consumers, businesses, and industry
Regulation & Supervision - Potential regulatory changes and clearer guidance
Data Collection - Standardizing and centralizing fraud data sharing
Reserve Bank Tools - Enhanced fraud detection and prevention services

Notable 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 exploit
Multi-Institution Schemes: Fraud often involves multiple banks and payment methods across different regulatory jurisdictions
Trust in the System: Continued fraud growth threatens confidence in the entire U.S. payments infrastructure

Regulatory Focus Areas

Regulation CC Changes

The Federal Reserve is considering amendments to funds availability rules, asking whether:

Technological advances allow for shorter hold periods
Current fraud detection capabilities justify faster fund access
Better dispute resolution mechanisms are needed

Industry Pain Points

Banks struggle with interbank disputes over fraudulent check liability
Small community banks need additional fraud prevention resources
Current data sharing restrictions limit collaborative fraud fighting

What Happens Next

Comment Deadline: September 18, 2025

Who Can Participate:

Banks and credit unions
Fintech companies
Consumer advocacy groups
Technology providers
Payment processors
Anyone affected by payments fraud

Questions 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 26293-26298
Comment Submission: Multiple agencies accept comments through regulations.gov and agency websites
Agency Contacts: Specialized fraud and payments policy teams at OCC, Federal Reserve, and FDIC

Episode Length

Approximately 10 minutes