ICBA applauds executive order combating check fraud

ICBA applauded the Trump administration for working to combat the threat of check fraud by addressing the Treasury Department’s use of paper checks.

Executive Order: In a new executive order, President Donald Trump ordered the Treasury Department to transition from paper checks to electronic payments for all federal disbursements and receipts. The EO notes the use of checks imposes unnecessary costs and raises the risks of fraud, lost payments, theft, and inefficiencies.

2025 Implementation: The EO directs the Treasury Department to cease issuing paper checks for all federal disbursements related to intragovernmental, benefits, vendor, and tax-refund payments—to the extent permitted by law—by Sept. 30, 2025.

More: In a national press release, ICBA President and CEO Rebeca Romero Rainey said ICBA:

• Is available to work with the Treasury Department as it transitions away from paper checks to ensure more secure payments.

• Is partnering with the U.S. Postal Inspection Service to combat check fraud by offering community banks in-branch educational materials.

• Continues to support the growth of instant payments options like the FedNow Service.

Treasury Check Resource: Amid a dramatic rise in check fraud, ICBA has encouraged community banks to use the Treasury Department’s Treasury Check Verification System to catch canceled, duplicate, or other problematic Treasury checks at the time of presentment.

Check Fraud Partnership: ICBA’s partnership with the Postal Inspection Service includes a customizable news release via ICBA’s Marketing Resource Center.

Additional ICBA Resources: The ICBA website features additional community banker resources on fraud and scams, including ICBA’s guides on check fraud and online fraud courses. Meanwhile, the Fraud subgroup on ICBA Community includes more than 750 members dedicated to discussing fraud.