Frontline defense
Visa's submission highlights the scale of its fraud prevention investment and its reliance on technology to combat evolving threats, and Over the past five years, more than $12 billion has been invested in intelligence and technology infrastructure. The efforts helped to stop fraud over $40 billion, the company wrote.
The company believes regulators should support “result-based regulation”” That Allows artificial intelligence (AI) innovation. “We encourage regulators to adopt regulations that focus on AI model results rather than normative, process-based approaches,” Visa said.
Visa highlights tools such as Visa Advanced License, which says “an estimated $30 billion in fraud per year” and Visa Paindskey, “the tool can reduce the fraud rate by up to 50% compared to SMS OTP.”
First Service Credit Union also supports technology enhancements – in this case urge The Fed integrates fraud detection services into Fednow and Fedach, and its “'payment delay' feature' is used to mark transactions, allowing manual review before final resolution.”
The view of community banks
Smaller banks stress the need for faster and more reliable collaboration tools. Chambers Bank proposed “a centralized online portal designed to conduct secure and direct digital communication between institutions” and argued that this would eliminate telephone calls and “simplify inter-agency participation.”
Advertisement: Scroll Continue
The bank also called for a “single integrated reporting database for fraud activities” and the national fraud contact registry for financial institutions. At the same time, it urges regulators to take more responsibility for businessmen who violate databases: “Businessmen should present more responsibility to the customers they acquire: compromise, This is their database. ”
Dayspring Bank adds another operational challenge: fraudulent remote deposits. “We continue to see losses associated with fraudulent mobile deposits, often changing or duplicate checks, which poses a significant challenge for community banks,” the agency wrote.
It requires regulators to require clearer powers to extend suspicious items and requires a practical fraud reporting system “accessible and practical for community banks with limited compliance personnel.”
Education and awareness
First Service Credit Union emphasizes that fraud prevention begins with informed consumers. “Education is one of the most effective tools for preventing fraud, especially when tailored at the community level.” The template campaign proposed by credit unions can be localized by smaller institutions and targeted efforts to attract vulnerable people like the elderly.
Visa's own relics say fraud education is “essential, but not enough in itself”, believing that consumers must participate through cultural moments and the real world interaction.
Chambers Bank responded to the call for publicity, noting that social media “seems to attract the widest audience” and recommended consumer campaigns that encourage people to “stop > think > before using payment methods.”
Adjustment flexibility
Some agencies urge regulators to balance fraud with operational reality. First Service Credit Union urges updates to CC and regulation E to better reflect fraud trends in mobile deposit and social engineering scams. It warns that the current rules “usually expose credit unions to high liability when members manipulate through increasingly complex scams.”
The same goes for a large number of breeding banks ask Especially flexibility exist Deposit holding time to give smaller banks the power to suspend suspicious items before settlement. Visa calls on regulators to consider “the provisions or pilot programs of safe harbors” that will allow AI testing “without over-execution risks” to be controlled.
In short, the comments highlight that a certain level of regulations may inadvertently increase the cost of community institutions while allowing large companies to innovate more freely.
