Fighting check fraud will require greater collaboration and cooperation between federal, state and local agencies alongside private sector stakeholders such as U.S. banks, the American Bankers Association told House lawmakers.
The House Oversight Committee’s Government Operations Subcommittee held a hearing today on mail theft and crime. In a statement submitted ahead of the hearing, ABA outlined efforts by the banking sector to combat check fraud, which often involves criminals stealing paper checks from the mail.
“Check fraud has increased over 385% nationwide since the onset of the COVID-19 pandemic,” ABA said. “In response, the ABA and member banks have made combating this rapidly growing threat a top priority, as criminal organizations increasingly rely on check fraud to perpetrate financial crimes.”
ABA pointed to a joint effort between it and the U.S. Postal Service to raise awareness about check fraud, as well as ABA consumer education campaigns such as #PracticeSafeChecks. The association also noted it has urged the administration to consider creating an office in the White House to develop a coordinated national strategy for combating fraud, including check fraud.
