Payment players offer fraud fixes

Core Insights - The article discusses the need for improved information sharing, consumer education, and collaboration with telecommunications and social media companies to combat payments fraud, as highlighted in responses to a federal request for ideas [1][3]. Group 1: Industry Concerns - Payments fraud has become a significant concern for the industry, prompting bank regulators to seek input on addressing the issue, particularly focusing on check fraud [3][2]. - The comment period closed with nearly 200 responses from various stakeholders, including payments companies, banks, and consumer groups [2][3]. Group 2: Recommendations - The Financial Technology Association proposed a "coordinated national fraud strategy," advocating for the establishment of a federal and state task force along with awareness campaigns [3][6]. - Early Warning Services (EWS), which operates the Zelle payment network, presented a five-point plan emphasizing that fraud prevention requires a collaborative approach involving multiple stakeholders [4][5]. Group 3: Collaborative Efforts - EWS suggested creating a task force that includes payments companies, banks, regulators, social media platforms, and telecom companies to enhance fraud prevention efforts [6][7]. - The company also called for standardized information sharing among stakeholders, improved law enforcement coordination, and increased investment in consumer education initiatives [6][7]. Group 4: Legislative Actions - A bipartisan group of senators proposed legislation to establish a task force aimed at studying payment scams and recommending strategies for regulators and lawmakers to combat them [7][6]. - EWS highlighted the critical roles of social media and telecom firms in both enabling and disrupting scams, advocating for sector-wide engagement and best practices throughout the "scam lifecycle" [7][8].