Fed’s Bowman Says Consumer Fraud Poses Risks to Financial System

The Federal Reserve’s top bank cop said that consumer fraud and scams pose increasing risks to the financial system, emphasizing that “nearly every fraud” affects a bank account or is tied to a payment that involves a bank account.

Regulators are weighing ways to step up the fight against consumer fraud as banks make “unprecedented investments in security and consumer education,” Vice Chair for Supervision Michelle Bowman said Tuesday in prepared remarks.