Officials highlight that the complexity of payment systems, often involving multiple institutions and mechanisms, makes a coordinated response essential. No single entity is positioned to tackle this issue independently.
Focusing on collaboration, oversight, and education
The consultation centers around five key areas where improvement and cooperation could help reduce fraud risks:
- Improving coordination between regulatory bodies and industry participants
- Expanding educational outreach to consumers, businesses, and financial service providers
- Enhancing regulatory and supervisory frameworks, especially concerning cheque-related fraud
- Boosting fraud data collection and facilitating more robust information-sharing
- Leveraging operational tools and services offered by the Federal Reserve Banks to better detect and prevent fraudulent activity
In parallel with the public comment process, federal agencies plan to continue collaborating with state and federal partners to improve the overall response to payments fraud. The public has 90 days from the notice’s publication in the Federal Register to submit comments.
A senior Federal Reserve supervision representative noted that the launch of the interagency RFI is a welcome step given the recent surge in cheque fraud.
The consultation also explores whether technological tools such as advanced analytics, machine learning, or digital rails can support faster detection and facilitate information sharing between institutions. Regulatory bodies are asking stakeholders to share effective counter-fraud measures and how collaboration with consumers could be enhanced.
This discussion is unfolding amid ongoing efforts in Congress and the executive branch to address paper-based scam schemes. In March 2025, an executive order mandated federal agencies to stop using and accepting paper cheques by September 30, 2025, shifting to electronic payment formats. Additionally, Senate lawmakers have proposed legislation to establish a multi-agency task force on payments fraud.
