representative. Young Kim He introduced a bill that would allow financial institutions to impose extended holds on suspicious checks and wire transfers while investigating potential fraud.
the “The Transaction Oversight and Payment Fraud Prevention Act of 2026(“Stop Payment Fraud Act of 2026”) aims to change the current law that requires financial institutions to provide funds within a specific time frame, even when a transaction is suspicious, Kim said on Thursday (June 18). press release.
“Our laws should not force banks to release funds before they have the opportunity to investigate suspicious transactions,” Kim said. “The Stop Payments Fraud Act gives financial institutions the time they need to stop fraud before it happens and better protect Americans’ hard-earned money.”
PYMNTS reported in April that Federal Reserve Financial Services (FRFS) Risk Officer Survey.which is based on responses from more than 400 financial institutions, found that Fraud check It has been on the rise for several years and wire fraud persists.
The report found that check fraud is the second most frequently reported type of fraud, behind only debit card payments. 63% of the financial institutions surveyed said they had been exposed to check fraud attempts, and 31% reported losses resulting from them.
Additionally, 19% of financial institutions said they had experienced wire transfer fraud attempts, and 2% reported losses in this category, according to the FRFS report.
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In March, PYMNTS reported that even as digital payment adoption accelerates, Fraud check It continues to be a source of losses for financial institutions, businesses and consumers.
the Financial Crimes Enforcement Network FinCEN said in 2023 there will be an increase in the number of crimes nationwide Fraud check It was led by criminals targeting US mail carriers and the US Postal Service. In addition to stealing checks, some criminals use personally identifiable information found in stolen mail for future fraud, FinCEN said.
PYMNTS Intelligence Report2025 State of fraud and financial crimes in the United States“It found that an increasing share of financial institutions said the sophistication of fraud was rising. The share of financial institutions that said the sophistication of fraud schemes had increased sharply over the previous year rose from 35% in 2024 to 46% in 2025.”
