Congress: Are Regulators Moving “Too Slow” to Address Check Fraud?
- Check fraud SARs surged over 700% in a decade, despite declining overall check usage
- Roughly three-quarters of retirement-age Americans still rely on checks, making them a target
- Regulators have launched an interagency Request for Information and working group to coordinate stronger anti–check fraud actions
In August of 2025, we approached readers with the question: "Has a Reactive Approach to Check Fraud Backfired?" Most notably, we referenced an American Banker article that notes that the FED Vice Chair is finally taking action to find a solution for check fraud -- pointing out that "efforts by regulations have been slow to advance and seem to have done little to address this growing threat."
However, at a House Financial Services hearing On December 2, 2025 -- a full four months later -- it seems that progress has not been made.
In the video, Congresswoman Ann Wagner of Missouri presses Federal Reserve Vice Chair for Supervision Michelle Bowman on the growing exploitation of the most vulnerable in society and specifically points out check fraud.
Rep. Wagner notes that check fraud SARs have grown 700% over the past decade, and even with the data, the FED has been slow to address the concern:
"You highlighted that while check fraud has been a well-known problem for several years, regulators have been slow to address the harm that it does to banks, especially community banks as well as consumers and businesses that are oftentimes its victims."
She ends with two poignant questions to Federal Reserve Vice Chair for Supervision Michelle Bowman:
"What actions do you think regulators themselves can take to address check fraud? And what areas, if any, would require congressional action?"
How Regulators are Approaching Check Fraud
Rep. Bowman, drawing on her background as a community banker, confirms that check fraud is one of the top concerns she hears from banks year after year. One of her first actions as Vice Chair, she explains, was to join other regulators in issuing an interagency Request for Information (RFI) on check fraud and payments fraud more broadly and to form a working group to review comments.
Bowman is most likely referring the Request for Information on Potential Actions To Address Payments Fraud RFI from June 20, 2025. In the RFI, the OCC, Federal Reserve, and FDIC sought public input on payments fraud, inviting stakeholders to suggest actions the agencies could take—jointly or individually—to help mitigate check, ACH, wire, and instant payments fraud affecting consumers, businesses, and financial institutions.
Unfortunately, it appears that nearly a half a year later, there has been no notable updates or actions taken -- even with Rep. Wagner urging continued updates on both regulatory moves and any areas where Congress needs to step in, underscoring that this is a “big, big problem” she remains determined to tackle.
Can the Industry Rely on US Government to Reduce Check Fraud?
While we can hope that regulators are able to stop the fraudsters in their tracks, it's not recommended that financial institutions rely on them. Take, for instance, the robberies of mail carriers and mailboxes -- a favorite target for criminals to steal checks. The government addressed this concern way back in 2022. Unfortunately, there has not been any meaningful progress made -- as we still see news reports daily on mail theft.
Therefore, financial institutions must protect themselves and their customers -- but they do not have to do it alone. Fintechs like OrboGraph provide the technologies like Anywhere On-Us Fraud and Anywhere Deposit Fraud to detect counterfeits, forgeries, and alterations before customer funds are lost. By leveraging our OrbNet Forensic AI technologies, along with transactional analyzers, rules engine, and consortium data, financial institutions can effectively detect over 95% of fraudulent checks.
It is commendable to see the regulators addressing the growing check fraud problem, but until we see meaningful progress, the industry must protect themselves with the right technologies to address check fraud.