Agencies stress urgency of rising fraud during Treasury’s FLEC meeting

Rising fraud risks and federal efforts to modernize government payments will have a direct impact on credit unions. Treasury’s Financial Literacy and Education Commission (FLEC) spotlighted these issues and detailed changes at its meeting Wednesday, bringing together federal agencies that stressed stronger collaboration, better consumer education, and consistent definitions of “fraud” and “scams” as needed improvements.

When discussing national trends in payments fraud, the Federal Trade Commission (FTC) reported consumers lost nearly $13 billion in 2024, while the Federal Reserve said check fraud has surged 385% since 2019.  A panel addressing the Executive Order to modernize federal payments revealed that the Department of Veterans Affairs, Social Security Administration, and IRS — the agencies responsible for 85% of all federal checks — are working to transition beneficiaries to direct deposit or electronic cards. America’s Credit Unions wrote in support of the Executive Order in June, urging the Treasury to be flexible in its implementation.

Top consumer protection priorities include tackling scammers impersonating government agencies, particularly around benefits and tax payments, and outreach to unbanked and older Americans with a focus on face-to-face education.

America’s Credit Unions continues to engage lawmakers and regulators to raise awareness to credit union fraud concerns as well as ensure positive, effective changes are made.