ICBA said mail theft and check washing schemes remain a persistent challenge for community banks across the country and offered to partner with the U.S. Postal Service to help mitigate the issue.
Details: In a letter to the USPS, ICBA:
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Said community banks across the country continue to report cases in which customers’ mailed payments are intercepted, chemically altered to change payee names and dollar amounts, and fraudulently deposited at unrelated financial institutions.
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Noted community banks have received a growing number of reports from cardholders whose payments mailed to Carol Stream, Ill., were intercepted and washed, suggesting a particular vulnerability at this location.
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Offered to work with USPS on the challenge of securing payment mail at high-volume processing facilities.
Recent Testimony: ICBA community banker Gay Dempsey testified before the House Financial Services Committee in March that fraud is an urgent problem that must be fought through coordination among financial institutions, law enforcement, and government at every level.
ICBA Efforts to Fight Fraud:
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ICBA’s Fraud Task Force brings together community banks and state associations from across the country to share information, build relationships with regulators, and collaboratively develop resources.
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ICBA last fall told Congress that community banks lead the fight against fraud but cannot solve the problem alone.
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ICBA last year partnered with the U.S. Postal Inspection Service to produce and deliver in-branch educational materials to help consumers safeguard their financial assets and respond if they experience check fraud.
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The ICBA website features community banker resources on fraud and scams, including ICBA’s guides on check fraud and online fraud courses.
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The Fraud subgroup on ICBA Community includes more than 1,400 members dedicated to discussing fraud.