Protect Your Bank From Card Fraud Losses

ICBA Payments is dedicated to supporting the payments needs of community banks and has been since 1985. We fully support and encourage community banks of all sizes to stand up credit and debit card programs to provide superior service to their customers and communities. We also understand that there is some risk involved in card issuing, as there is in any line of business. That is why we created a program exclusively for community banks to help them recuperate losses from card fraud. Stopping all fraud would be a dream come true; but until the fraudsters call it quits, banks can still have a successful, lucrative card program, while ensuring inevitable losses are mitigated using ICBA Payments Fraud Loss Protection Plan (FLPP).  

When you sign up, you’re covered for losses stemming from these and other fraud types*:  

• Account takeover (including identity theft, phishing, pharming, vishing, and other social engineering tactics)   

 Account Takeover (ATO) fraud is the result of an unknown or unauthorized person impersonating a legitimate cardholder with the intent of taking over their account. The bad actor in this scenario can use a variety of ways to steal a customers’ credentials to help access to their account, including data gleaned from phishing, pharming, vishing or other social engineering attacks.   

• Counterfeit and skimmed card fraud   

Skimming occurs when thieves install devices in or around ATMs, POS terminals, and fuel pumps to capture customer PINs and card data. They use the skimmed data to create fake cards and steal from victims. According to FBI.gov, this fraud is costing banks and consumers more than $1 billion a year.     

• Friendly fraud, with police report  

Friendly fraud, also called first-party or chargeback fraud, is committed by someone who knows the cardholder personally, often family or friends, or when a cardholder makes a legitimate purchase with their own card and then requests a chargeback after receiving the goods or services.   

• Lost cards and stolen cards  

Counterfeit and lost-or-stolen fraud account for more than 80 percent of card-present U.S. debit card fraud, according to the Federal Reserve Bank of Kansas City (2025).    

• Cards not received in the mail (NRI)  

When cards are fraudulently intercepted in transit, this can result in activation and use of a card by someone other than the legitimate cardholder. There are ways cardholders can stay notified when authorization or transactions occur, but for the instances when fraudsters break through those preventative measures, FLPP can help.