Companies battling payments fraud need better information- and data-sharing, enhanced consumer education and help from telecommunications and social media companies, according to suggestions this month in response to a federal call for ideas to tackle the problem.
Those were among the recommendations within dozens of comments filed by payments companies, banks, trade and consumer groups in response to a June request for information from the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.
As payments fraud has become a growing industry concern, bank regulators requested input on ways to address the problem, with a particular focus on check fraud. The comment period, which closed Sept. 18, drew close to 200 comments.
Trade group the Financial Technology Association called for a “coordinated national fraud strategy” that includes the formation of a federal and state task force and awareness campaigns.
Zelle operator Early Warning Services, in its comment letter, offered a five-point plan that underscored its view that fraud “is not the burden of financial institutions alone,” and necessitates a collaborative, comprehensive approach.