Consumer Compliance Outlook: First Issue 2024

Compliance Spotlight: Resources to Combat Increased Check Fraud

The Federal Reserve System (Federal Reserve) recognizes that check fraud is a top concern of bankers. In 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) noted that financial institutions reported 680,000 suspicious activity reports for possible check fraud in 2022, a significant increase from 2021. While the Federal Reserve actively monitors trends in check fraud, it generally does not intervene in fraud disputes between banks, including banks over which it may not be the primary federal banking regulator. The Federal Reserve is sharing these resources and sound practices to help financial institutions respond to check fraud.

CCO occasionally issues individual Compliance Spotlights or Compliance Alerts to our electronic subscribers to share timely regulatory information. To receive Alerts and Spotlights electronically, go to the CCO home page and select the email notification link to subscribe.

Download the spotlight PDF