ICBA told Congress that community banks are on the front lines of fraud mitigation and are leading the response but cannot solve the problem alone.
Details: In a statement for the record prior to a House Financial Services Committee subcommittee hearing on fraud, ICBA said:
Two types of fraud have become increasingly prevalent and can have crippling effects on victims: check fraud and the financial abuse of U.S. seniors.
New or revised supervisory guidance that is particularly burdensome could impact community banks’ ability to effectively prevent, detect, or mitigate fraud by forcing resources to be redirected.
Community banks would benefit from automated data collection, analysis, and reporting tools that are integrated with services they already use and do not carry additional costs.
ICBA Efforts: In the statement, ICBA listed its ongoing check fraud-mitigation efforts, including:
ICBA’s Fraud Task Force, which brings together community banks and state associations from across the country to share information, build relationships with regulators, and collaboratively develop resources.
ICBA’s partnership with the U.S. Postal Inspection Service, which includes a customizable news release via ICBA’s Marketing Resource Center and a check fraud prevention flyer community bankers can distribute to customers.
The ICBA website, which features community banker resources on fraud and scams, including ICBA’s guides on check fraud and online fraud courses.
The Fraud subgroup on ICBA Community, which includes more than 1,100 members dedicated to discussing fraud.
More from the Hearing: Committee leaders also sent a letter to the Federal Reserve requesting information on the Fed’s efforts to mitigate the increase in financial fraud and determine if further action is needed.