Blog: ICBA and community banks fight check fraud

ICBA and community banks are leading the way in fighting check fraud, according to a new blog post on Main Street Matters.

New Blog Post: ICBA Vice President of Operational Risk and Payments Policy Scott Anchin writes that ICBA:

• Recently kicked off a check fraud task force comprising more than 30 community banks and state associations.

• Offers member education, training, and resources on check fraud.

• Supports collaborative efforts, such as the U.S. Postal Inspection Service’s focus on mail fraud, industry directories that facilitate information sharing, and ThinkTECH Accelerator companies focused on check fraud.

ICBA Advocacy: In a statement for a recent Senate Banking Committee hearing, ICBA said large institutions of first deposit are slow to reimburse community banks for unresolved checks and cited concerns with U.S. Postal Service security. ICBA has also said it supports the Treasury Check Verification System as a tool to curb Treasury check fraud, though it opposes a proposal to mandate use of the system.

Additional Resources: Amid a dramatic rise in check fraud, ICBA also encourages community banks to use:

• Nacha’s ACH Contact Registry, which includes thousands of check contacts.

• The Treasury Department’s Treasury Check Verification System to catch canceled, duplicate, or other problematic Treasury checks at the time of presentment.

• Tips for filing Suspicious Activity Reports from the Financial Crimes Enforcement Network’s alert on fraud schemes.

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