Toward fighting increased check fraud across America, U.S. Rep. Young Kim (R-CA) on June 18 sponsored legislation that would amend current federal law regarding cases of fraudulent checks or wire transfers.
Specifically, the Strengthening Transaction Oversight and Preventing (STOP) Payments Fraud Act of 2026, H.R. 9331, would permit financial institutions to place extended holds on suspicious checks and wire transfers while potential fraud is investigated, according to a bill summary provided by the congresswoman’s staff.
“Check fraud can wipe out a family’s savings overnight while leaving financial institutions responsible for covering the losses,” said Rep. Kim. “Our laws shouldn’t force banks to release funds before they have the opportunity to investigate suspicious transactions. The STOP Payments Fraud Act gives financial institutions the time they need to stop fraud before it happens and better protect Americans’ hard-earned money.”
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