In a speech published by the United States Federal Reserve Board, Vice Chair for Supervision Michelle W. Bowman outlined a coordinated approach to consumer and payments fraud, presenting it as a threat to households, banks, payment systems, and confidence in the financial system. She said feedback from more than 250 comments on the joint Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency request for information is shaping the response, including possible enhanced guidance and resources for banks, broader stakeholder engagement, and stronger fraud detection, prevention, and mitigation tools across Federal Reserve payment platforms. Bowman anchored the case for action in Federal Reserve survey data showing that 21 percent of American adults experienced financial fraud or scams in 2024. Non-credit card fraud generated USD 84 billion in losses across the financial system, only USD 21 billion was recovered, and consumers absorbed an estimated USD 63 billion in net losses. More than half of non-credit card fraud involved bank account products, bank transfers and payments accounted for almost 40 percent of aggregate reported losses, and the median victim lost USD 500 before recovery. Her remarks also noted that fraud losses are among the largest expenses for community banks and cited one smaller regional bank that estimated annual fraud costs at USD 40 million. Bowman said the Federal Reserve is also working with industry on fraud and scam classifier models to standardize terminology, improve data sharing, and help identify repeated schemes across payment methods and institutions. A public-private roundtable with Secretary Bessent and FCC Chair Brendan Carr is planned to gather input on current anti-fraud practices, data-sharing arrangements, prevention mechanisms, and additional cross-sector or government actions, alongside a broader review of whether existing regulations are fit for modern fraud threats and how victim recovery can be improved.
Federal Reserve Board 2026-05-05
United States Federal Reserve Board Vice Chair Bowman outlines coordinated payments fraud response following review of over 250 comments
Federal Reserve Vice Chair for Supervision Michelle W. Bowman outlined a coordinated response to rising consumer and payments fraud, citing survey data showing 21 percent of American adults experienced fraud in 2024 and non‑credit card fraud caused USD 84 billion in losses, with consumers absorbing an estimated USD 63 billion. She said feedback on a joint request for information by the Federal Reserve, FDIC, and OCC is informing potential enhanced bank guidance, stronger fraud tools across Fed payment platforms, and standardized fraud and scam classifier models. Bowman also highlighted planned public‑private engagement and a broader review of whether existing regulations remain fit for modern fraud threats and victim recovery.