Early Warning Services Proposes Comprehensive Fraud Prevention Plan for U.S. Payment Systems

Collaborating to Combat Payment Fraud: Early Warning Services' Response

In an era where financial fraud continues to threaten the digital landscape, Early Warning Services, LLC has stepped up with a robust initiative aimed at fortifying the U.S. payment systems. The company, renowned for its influential products like Zelle® and PazeSM, submitted a comment letter on September 19, 2025, to the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC). This letter articulates a five-point plan intended to address the rising occurrences of payment fraud across the nation.

The Urgency of the Situation

Early Warning Services has dedicated over 35 years to fighting financial fraud, reinforcing its credibility as a leader in this sector. In 2024 alone, they successfully screened a staggering $10.8 trillion in payments, preventing losses amounting to $3 billion that could have fallen victim to fraudulent schemes. Ben Chance, the company's Head of Identity and Payments Risk, emphasizes that to change the current landscape, a collaborative effort is not only necessary but vital to safeguarding consumers against scams.

The company identifies that fraudsters often target individuals before a payment is made, employing tactics like impersonation scams, fake checks, and misinformation on social media to manipulate consumers. The complexity of these tactics necessitates a united front from various sectors beyond traditional financial institutions.

The Five-Pillar Approach

Early Warning's comment letter outlines five crucial pillars aimed at curbing the prevalence of payment fraud:

1. Establishment of a Cross-Sector Task Force: By creating a collaborative group that includes financial institutions, payment providers, regulators, and social media platforms, Early Warning aims to foster proactive fraud prevention strategies.

2. Standardized Information Sharing: This involves improving communication across stakeholders to enhance the detection of fraud and response times. Quick sharing of information can mitigate emerging threats significantly.

3. Enhanced Engagement and Best Practices: Beyond finance, engaging social media and telecom providers which play critical roles in both facilitating and combating scams is crucial.

4. Increased Coordination with Law Enforcement: Having real-time exchanges of information and strategic responses will allow law enforcement agencies to disrupt fraud activities more efficiently.

5. Investment in Consumer Education: Educating the public about recognizing and avoiding scams is imperative. Enhanced awareness can empower consumers to protect themselves and reduce their chances of becoming targets.

A Shared Responsibility

The need for a collective response to financial fraud is evident. Early Warning's recommendations clarify that combating fraud is not solely the responsibility of banks and credit unions; it extends to digital platforms, law enforcement, and consumers. This multidimensional threat demands a comprehensive strategy involving all parties to secure the integrity of the payment system.

As the digital landscape evolves, so do the tactics of fraudsters. However, with established collaborations, heightened awareness, and proactive measures, we can create a safer banking environment. Early Warning Services' initiative reflects a significant step towards enhancing the resilience of the U.S. financial system.

About Early Warning Services, LLC

As a frontrunner in financial technology, Early Warning Services, LLC is dedicated to protecting consumers and small businesses through innovative fraud and payment solutions. The power of collaboration and shared responsibility could redefine the future of payment security, making it a community endeavor. With a commitment to empowering institutions and consumers alike, Early Warning continues to lead the charge against financial fraud.