Fraud continues to pose a threat to U.S. households, businesses, financial institutions, and the economy as a whole.
Consumers are plagued by problems with unauthorized transactions as well as fraudulently induced payments involving peer-to-peer payment applications, crypto-assets, bank-to-bank wire transfers, check alterations and forgeries, and Electronic Benefits Transfer (EBT) card skimming. The increasing ease and use of mobile and online banking through technological advancement have also simultaneously provided opportunities for scammers to exploit newer payment technologies.
The financial institutions and companies that design and run these payment systems, including the financial institutions and companies that hold the accounts of criminal fraudsters and money mules that receive fraudulent payments, need to take more responsibility for making these systems safe and protecting consumers. Given the increasing sophistication of fraud schemes, warnings to consumers are insufficient. If payment system participants take responsibility for protecting consumers, they will have the incentive to leverage the latest innovative technologies to prevent and detect fraud and apportion liability among the various system participants, thereby making the entire system safe.
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