US regulators ask for input on cheque and payment fraud measures

The initiative is intended to support consumers, businesses, and financial institutions by identifying ways to limit the use of fraudulent methods to send or receive money, including scams. 

Officials note that the complexity of payment systems, often involving multiple institutions and payment mechanisms, makes a coordinated response essential. No single entity, public or private, is positioned to tackle the issue independently.

Focus on collaboration, oversight, and education 

The consultation focuses on five areas where improvement and cooperation may help reduce the risk of fraud: 

• Strengthening coordination between regulatory bodies, the Federal Reserve Banks, and industry participants 
• Expanding educational outreach to consumers, businesses, and financial service providers 
• Enhancing regulatory and supervisory frameworks, particularly around cheque-related fraud 
• Improving fraud data collection and enabling 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 identifying further opportunities to collaborate 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 described the launch of the interagency RFI as ‘a welcomed first step,’ in the context of a recent surge in cheque fraud. 

The RFI 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 highlight which counter fraud measures have been effective, and how collaboration with consumers might help. 

This discussion is taking place while efforts are being made in Congress and the executive branch to combat paper based scam schemes. In March 2025, an executive order mandated federal agencies to halt the use and acceptance of paper cheques by 30 September 2025, shifting to electronic payment formats. Additionally, Senate lawmakers have proposed legislation to establish a multi agency task force on payments fraud.