WASHINGTON—A Federal Reserve survey of risk officers at financial institutions found that debit card fraud was the leading driver of fraud losses in 2024, closely followed by check fraud, ABA Banking Journal reported.
From 2023 to 2024, the number of financial institutions experiencing attempted check fraud increased by 10%, while attempted automated clearing house (ACH) fraud rose by 9% and debit card fraud by 6%. Despite this, debit card fraud accounted for the largest share of fraud losses at 39%, followed by check fraud at 30%. ACH fraud made up 9% of losses, while credit card fraud contributed 5%. The remaining losses stemmed from other payment methods—such as wire transfers and nonbank apps—though losses from instant and real-time payments were minimal or nonexistent, ABA Banking Journal stated in its analysis.
The report also highlighted a rise in check fraud schemes involving counterfeit checks, check washing, and payee forgery. However, incidents of kiting, float, and paperhanging declined, suggesting that collaborative industry efforts are effectively mitigating risks and reducing losses, ABA Banking Journal added.