U.S. House Committee Makes Fighting Check Fraud a Priority
- A U.S. government subcommittee is looking into financial fraud
- There has been a call to action by multiple elected officials
- Collaboration is key to stopping check fraud
The Oversight and Investigations Subcommittee of the U.S. House Committee on Financial Services recently convened to address the alarming rise in financial fraud targeting American consumers. The hearing, led by Chair Dan Meuser, explored the increase in check fraud, senior scams, and the evolving tactics employed by criminals—including advanced AI-driven schemes that mimic voices and images. Lawmakers noted that fraud is affecting all demographics, with billions lost annually and most scams originating from overseas.
No one is immune; Chairman French Hill revealed personal experience with check fraud and emphasized unprecedented losses due to various scams such as text phishing and identity theft.
Key witnesses highlighted that tackling fraud requires broad coordination.
- Paul Benda of the American Bankers Association called for action by banks, telecom companies, social media platforms, and the postal service to root out scam tactics
- Ian Bednowitz of Gen emphasized that fraud exploits both technology and human vulnerability during emotionally charged events
- Kate Griffin from the Aspen Institute urged a proactive, preventive government approach and better sharing of scam intelligence.
The consensus: Fraud is a pervasive threat demanding a united, innovative response from both government and industry.
Addressing Check Fraud
A House Financial Services Committee press release highlights the hearing, positioning check fraud as a top topic for financial institutions and lawmakers. The press release points out its prevalence, the technical and psychological sophistication of scammers, and the urgent need for wide-ranging government and industry action to prevent future losses and protect consumers.
In terms of actual calls to action, witnesses and committee members pushed for:
- Better use of federal authority by agencies to combat check fraud and other scams.
- Coordinated action from banks, telecom companies, social media companies, and the postal service.
- Improved mail security to prevent check theft.
- Stronger, more coordinated government policies to prioritize fraud prevention and disrupt criminal syndicates.
The U.S. House Committee on Financial Services press release clearly positions check fraud as a top topic for financial institutions and lawmakers, pointing to its prevalence, the technical and psychological sophistication of scammers, and the urgent need for wide-ranging government and industry action to prevent future losses and protect consumers.
Collaboration Amongst All Parties
The key to stopping check fraud is collaboration amongst all the parties involved. This includes:
- Financial institutions investing in the resources and technologies to combat check fraud, as well as disseminating educational materials to its customer base
- Fintechs like OrboGraph developing new and innovative technologies to stop On-Us and Deposit fraud
- Consumers recognizing the scams and reporting to the authorities
- Law enforcement investigating and arresting the fraudsters
- The US Government putting new laws and strong punishments for financial fraudsters
While it's great to see that the US Government is finally taking the issue of check fraud more seriously. However, if any of the parties fail to perform their duties, check fraud will continue to flourish. Each party must do their part, or all efforts will be for naught.