Press Releases
Financial institutions report rising fraud trends across all major payment channels as criminal tactics evolve, risk officer survey finds
April 22, 2026
CHICAGO — Federal Reserve Financial Services (FRFS) today announced key findings about current fraud and risk trends based on its annual survey of 400+ risk professionals at financial institutions that use financial services offered by FRFS. The survey, as described in the 2026 Risk Officer Report (PDF), was conducted in the fourth quarter of 2025. It revealed widespread and intensifying fraud challenges across the U.S. financial ecosystem — driven by a combination of evolving criminal tactics, increased digital exposure and rising scam activity that exploits individuals, businesses and financial institutions.
While specific fraud and scam patterns differ across payments channels, a clear theme emerged: financial institutions are seeing more fraud attempts and losses, with criminals increasingly using techniques such as impersonation, social engineering and credential compromises.
Against this high-level backdrop, the following highlights key survey trends within each payment rail:
- Sixty percent of financial institutions surveyed reported check fraud, which continued its multi-year resurgence. Institutions cited significant increases in counterfeit checks (+32%), check washing (+21%), forgery (+18%) and physical alteration.
- Account takeover by authorized parties (either the actual account holders or people impersonating them) is emerging as a notably growing threat, affecting 23% of the financial institutions surveyed — a 7% year-over-year increase.
- Debit card fraud remained the most widespread type, as 75% of institutions reported attempts and estimated it resulted in 40% of their total payments fraud losses — up 4% year over year.
- Wire fraud continues to increase, and was reported to include account holder scams, business email compromise and money mule-driven funds transfers, indicating the growing sophistication of social engineering-based attacks.
- ACH-related fraud reflected similar dynamics, with increases in account holder scams — seen by 41% of institutions — alongside rising business email compromise, unauthorized debits and account takeover fraud.
More about account takeover fraud
The Federal Reserve continues to expand its online fraud resources in an effort to educate financial institution customers and employees. This week, FRFS launched initial modules in its new Account Takeover Fraud Mitigation Toolkit (Off-site). Criminals who gain unauthorized access to a legitimate user’s account can cause significant losses for both victims and financial institutions by fraudulently withdrawing or transferring funds, making unauthorized purchases, selling account details to other criminals, or changing account information to lock the victim out of the account and hinder the financial institution’s ability to contact them about suspicious activity.
Other Federal Reserve educational resources, which are continually updated, include the Check Fraud Mitigation Toolkit (Off-site), Scams Mitigation Toolkit (Off-site) and Synthetic Identity Fraud Mitigation Toolkit (Off-site). The scams and check fraud toolkits were expanded again this week.
“The Federal Reserve encourages dialogue, education and problem-solving to advance payment security in its role as an industry convener, catalyst and provider of payment services,” said Mike Timoney, vice president of payments improvement, Federal Reserve Financial Services. “Account takeover fraud, scams and check fraud are three areas where education can make a real difference for the payments industry, businesses and consumers.”
Collectively, these tools underscore the Federal Reserve’s ongoing efforts to support the industry by helping to mitigate fraud and protect consumers and businesses.
About FRFS
FRFS provides payment services and seeks to foster the stability, integrity and efficiency of the nation’s monetary, financial and payment systems. It offers a comprehensive suite of payment and information services to financial institutions. Visit FRBservices.org® for additional information.
Media Contacts
Maryellen Thielen (Federal Reserve System) P: (312) 825-3837
Liz Miklya (Federal Reserve System) P: (773) 882-9841