The initiative aims to support consumers, businesses, and financial institutions by identifying ways to limit the use of fraudulent methods for sending or receiving money, including scams.
Officials highlight that the complexity of payment systems—often involving multiple institutions and payment mechanisms—requires a coordinated response. No single entity can address this issue independently.
Focusing on collaboration, oversight, and education
The consultation centers on five key areas where improvement and cooperation may help reduce the risk of fraud:
- Strengthening coordination between regulatory bodies, Federal Reserve Banks, and industry participants.
- Expanding educational outreach to consumers, businesses, and financial service providers.
- Enhancing regulatory and supervisory frameworks, especially around cheque-related fraud.
- Improving fraud data collection and enabling more robust information-sharing.
- Leveraging operational tools and services provided by the Federal Reserve Banks to better detect and prevent fraudulent activity.
Simultaneously, federal agencies plan to continue identifying further opportunities for collaboration with state and federal partners to improve the overall response to payments fraud. The public has 90 days from the notice’s publication in the Federal Register to submit comments.
A senior Federal Reserve supervision representative described the launch of the interagency RFI as a ‘welcomed first step’ in light of a recent surge in cheque fraud. The RFI also explores whether technological tools, such as advanced analytics or machine learning, can support faster detection and facilitate information sharing between institutions.
Meanwhile, efforts are being made in Congress and the executive branch to combat paper-based scam schemes. In March 2025, an executive order mandated federal agencies to halt the use and acceptance of paper cheques by September 30, 2025, shifting to electronic payment formats. Additionally, Senate lawmakers have proposed legislation to establish a multi-agency task force on payments fraud.