ABA Welcomes House Financial Services Committee Report on Fraud and Scams

“We appreciate that the House Financial Services Committee’s new report recognizes that fighting fraud and scams requires a whole-of-ecosystem response, and we thank Chairman Hill and Subcommittee Chairman Meuser for their leadership in fighting this growing threat. While banks invest billions of dollars each year in fraud prevention, customer education and advanced technologies to help protect consumers, no single industry can solve this challenge alone. This report rightly highlights the critical roles that technology platforms, telecommunications providers, law enforcement, policymakers, as well as financial institutions all must play in disrupting criminal fraud networks and preventing victimization.

“We agree with many of the committee's specific recommendations including the need for a coordinated all-of-government approach, the removal of barriers preventing collaboration and information sharing within industries and with law enforcement and the harmonization of data collection and reporting systems to create a cohesive system through which individuals and entities can receive and disseminate reports of fraud and scams. We also strongly support the report’s call for enhanced telecommunications protections, including stronger authentication and monitoring and the prompt blocking and removal of scam calls, texts and the bad actors behind them. In addition, we agree with the report's conclusion that the bipartisan SCAM Act could serve as a meaningful step toward addressing fraudulent advertising on social media and reducing opportunities for criminals to target potential victims. 

“We look forward to continuing to work with Congress, the administration and other stakeholders to use this report to energize our fight against fraud and better protect consumers from these increasingly sophisticated threats."