Federal Reserve Vice President for Supervision Michelle W. Bowman She said on Tuesday (May 5) that she is raising consumer fraud as a priority issue for the Federal Reserve.
In a letter Delivered in the annual Women in Housing and Finance Symposium In Washington, D.C., Bowman said she is doing so because “in addition to the individual harm to consumers, fraud ultimately threatens the integrity and reliability of our financial system.”
Almost all scam It affects the bank account, Bowman said, banks of all sizes are working to combat fraud, and the financial impact of fraud is increasing throughout the banking industry.
Fed 2025″Survey of home economics and decision making“It found that 21% of American adults experienced financial fraud or scams in 2024,” Bowman said.
It also found that net consumer losses from non-credit card fraud that year were $63 billion. Bowman noted that financial products in that category often do not provide consumers with automatic protection or a refund guarantee.
“Our banking system runs on trust — the belief that accounts are secure and customers can transfer money safely and reliably,” Bowman said. “When one in five adults experiences fraud and $63 billion disappears from household accounts, that trust is eroded.”
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To meet this challenge, the Federal Reserve Bank, and Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency OCC evaluates responses after reviewing more than 250 comments They received a response to A Request for information Released in June 2025, Bowman said. Responses being evaluated include enhanced guidance and resources for banks, and broader stakeholder engagement in fraud solutions.
In addition, the Fed is enhancing the fraud-related tools and services it provides to banks via its payment platforms. For example, Bowman said the Fed is working with the banking industry to develop a common vocabulary for different forms of fraud so they can better recognize and combat these scams.
The Fed also works with state and local partners to combat fraud. For example, Bowman, Treasurysecretary Scott Besant and Federal Communications Commission president Brendan Carr Bowman said the company is preparing to hold a public-private roundtable where they will ask participants to share what has been achieved in terms of fraud prevention and what the government can do to help.
“Criminals are sophisticated, organized and relentless,” Bowman said. “Our approach must be equally robust.”
