How We Fought Fraud in 2025

Fraud and scams thrive not through any single vulnerability but through intricate webs connecting criminals, technology platforms, financial institutions and, unfortunately, victims. 

Addressing check fraud, for example, demands coordination among mail and shipping services, underground marketplaces, financial institutions, law enforcement agencies and regulatory bodies at every level of government.

Community banks, ICBA and our affiliated state associations have emerged as crucial advocates in this fight. We’ve driven meaningful legal and regulatory reforms, championed law enforcement engagement, advocated for appropriately scaled technology solutions and developed targeted education programs for bank staff and customers.

Progress has required sustained effort across multiple fronts, building knowledge of criminal enterprises and approaches to prevention, detection and mitigation, as well as coordinating stakeholder efforts and developing effective messaging.

Headline-grabbing victories include momentum toward changes in the Uniform Commercial Code, the federal transition from paper Treasury checks to electronic payments, and a multi-agency request for information on payments fraud from the OCC, Federal Reserve and FDIC. 

But equally important have been the quieter wins: stronger working relationships with policymakers, fraud prevention technologies for institutions of all sizes, educational resources and improvements in interbank fraud recovery.

As we examine where regulatory efforts have succeeded and where gaps remain, community banks should take stock of their own preparedness. Reassess key elements of your strategy around fraud and scams, such as your technology stack. Newer fraud detection tools powered by AI have become more accessible and affordable, offering advanced capabilities with bottom-line results.

Also, consider your relationships with stakeholders. 

First, assess your customer education efforts to make sure you’re communicating proactively about emerging scams and ways customers can protect themselves. Second, strengthen relationships with local law enforcement and post inspectors, perhaps by designating a fraud liaison who maintains regular contact with these agencies.

Finally, continue to engage with ICBA, your state banking association and other industry groups. Regulatory momentum will likely continue into the new year, and community banks benefit when they contribute perspectives to these discussions. Whether it’s commenting on proposed rules or sharing real-world fraud experiences, your voice matters in shaping practical, effective regulations.

One principle guides our path. Fraud prevention demands unified action with shared responsibility across the entire financial ecosystem. Community banks that take proactive steps today will be better positioned to protect their customers and institutions tomorrow.