Several bank trade groups are urging the Treasury Department to quickly transition from paper to digital payments, as an executive order from President Trump requires it to do.
The Bank Policy Institute, Consumer Bankers Association and The Clearing House Association submitted
The letter was collectively submitted by the three trade groups in response to a Treasury request for information relating to the executive order, which is titled "
"Treasury's efforts to
Check fraud is a source of concern for banks, with a recent survey
Treasury checks are uniquely vulnerable to fraud due to two factors, according to the joint statement. "Treasury checks are a particular target given the large number of these checks issued and delivered through the U.S. mail in distinctive envelopes. Treasury checks also attract fraud because their funds generally must be made available
"These checks that are stolen end up on the underground market and can be used as a basis for either alteration or creating new counterfeit checks," Independent Community Bankers of America payments expert Scott Anchin previously told American Banker. "It's the combination of theft and technology that enables rampant check fraud."
In the letter, the associations recommended that the Treasury create a public awareness campaign to encourage electronic payments, expand the use of existing payment platforms (including
For example, the groups recommended that the Treasury "should consider removing the agency's name from the back of the mailing and ensure the check is not visible in the envelope window" to help reduce mail theft of existing Treasury checks.
Another recent measure created to help prevent government check fraud is a
