On April 4, 2024, the Federal Reserve System published a Consumer Compliance Outlook for Spotlight highlighting the available resources to combat check fraud in financial institutions.
In its latest issue of Consumer Compliance Spotlight, the Federal Reserve highlighted the resources available for financial institutions in combating the increase of check fraud. According to the Fed’s press release, FinCEN noted that financial institutions reported 680,000 suspicious activity reports for possible check fraud in 2022, which was a significant increase from 2021. The Federal Reserve shared the following resources and practices to help financial institutions respond to check fraud:
The Federal Reserve’s 2018 Consumer Compliance Outlook article titled Responding to Counterfeit Instrument Scams;
By contacting the Federal Reserve for concerns about check fraud and other issues;
FinCEN’s FIN-2023-Alert003 Alert on Nationwide Surge in Mail Theft-Related Check Fraud Schemes Targeting the U.S. Mail;
U.S. Postal Inspection Service’s (USPIS) various resources, which includes Tips & Prevention on scams in general, an information page on check fraud, and a brochure financial institutions can send to their customers;
The American Bankers Association’s (ABA) Check Fraud Claim Directory; and
Check Service Providers offering products and services designed to mitigate check fraud.
The Consumer Compliance Outlook can be found here.