Washington, June 30 -- Representative Young Kim issued the following press release:
Today, the House Financial Services Committee passed the STOP Payments Fraud Act, legislation led by Representative Young Kim (CA-40) to protect consumers and financial institutions from the rising threat of check and wire transfer fraud.
Check fraud has surged in recent years, with criminals stealing more than $1.3 billion (https://www.abtbank.com/blog/the-rise-of-check-fraud) from consumers and financial institutions in 2023 and 2024 alone. Under current law, financial institutions are required to make funds available within a prescribed timeframe, even when a transaction raises red flags. As a result, institutions may be forced to release funds before t...