ABA Applauds House Introduction of SCAM Act

“ABA commends Reps. Meuser and Correa for introducing the bipartisan SCAM Act and for taking this important step to protect Americans from the growing fraud threat. Each year, Americans lose billions of dollars to scams that originate in ads that appear on social media platforms, and this legislation requires social media companies to take reasonable steps to identify and prevent fraudulent and deceptive ads before they can do any damage. We urge lawmakers to support this legislation and join the banking industry and other stakeholders in the fight against fraud.” 
 
Additional Background

• On February 4, ABA expressed strong support for the SCAM Act after it was introduced in the Senate by Sens. Gallego and Moreno.  
• ABA has been a leader in the fight against fraud, including launching the industry-wide consumer education campaigns #BanksNeverAskThat and #PracticeSafeChecks, which have reached millions of Americans with practical fraud prevention tips.
• ABA has also partnered with the U.S. Postal Inspection Service and law enforcement agencies to combat check fraud, which has surged since the pandemic, and launched a free online platform that allows member banks to more easily verify payee information for government checks using the Treasury Department’s Treasury Check Verification System.
• In 2025, ABA created an industry-wide Fraud Contact Directory to help make it easier for banks across the country to identify and resolve potential instances of fraud.
• In September 2025, Paul Benda, executive vice president of risk, fraud and cybersecurity at ABA and chair of the International Banking Federation's Fraud and Scams Taskforce, testified before the House Financial Services Subcommittee on Oversight and Investigations during a hearing focused on fraud and the threat it poses to American families. In his prepared testimony, Benda highlighted the alarming rise in financial fraud targeting American consumers and businesses, emphasizing the need for a coordinated, multi-sector response to combat increasingly sophisticated criminal tactics. Paul Benda also hosts the ABA Fraudcast podcast, and the ABA Foundation has other helpful tips for consumers on how to spot fraud and scams including this recent infographic developed with the FBI on deepfake media scams.
• In November 2025, ABA welcomed the Justice Department’s launch of an interagency Scam Center Strike Force to dismantle Southeast Asian scam centers responsible for defrauding millions of Am