Testimony of Paul Benda on Protecting Seniors from AI-Generated Fraud

Introduction

Chairman Scott, Ranking Member Gillibrand, and members of the Committee, thank you for the opportunity to testify for today's hearing entitled: "The AI Deception Machine: Deepfakes, Chatbots, and the New Frontier of Senior Fraud." My name is Paul Benda, and I serve as Executive Vice President for Risk, Fraud and Cybersecurity at the American Bankers Association. ABA is the voice of the nation's banking industry, which is composed of small, regional and large banks that together employ more than two million people, safeguard trillions of dollars in deposits, and extend credit in communities across the country.

Banks play a unique and essential role in supporting the financial health of older Americans. As trusted institutions deeply rooted in their communities, banks are often the first, and most consistent, financial touchpoint for seniors and their families. Every day, bank employees help older customers manage retirement income, protect their savings, recognize and avoid scams, and adapt to an increasingly digital financial system. These relationships position banks not only as providers of financial services, but also as front‑line educators and protectors of financial security.

Banks have long used advanced analytics and artificial intelligence to identify suspicious transactions, protect customer accounts, and respond to cyber threats. Generative AI is strengthening those defensive tools. At the same time, criminals are using the same technology to make familiar scams more convincing, more personalized, cheaper to launch, and easier to scale. The central point of my testimony is straightforward: generative AI is not replacing traditional scams. It is industrializing them. A criminal can now create a convincing voice, video, photograph, text message, advertisement, or online persona with little technical skill and at very low cost. AI allows fraudsters to imitate a friend, family member, bank employee, government official, physician, pastor, financial adviser, or virtually anyone else whose identity may inspire trust.

Older Americans face especially serious consequences from these scams. A loss may represent retirement savings that cannot be replaced, proceeds from a home sale, or money set aside for medical and long-term care needs. The financial damage can be compounded by shame, isolation, fear of losing independence, and reluctance to report the crime. We should be careful not to describe older Americans as inherently unsophisticated. These crimes succeed because professional criminals deliberately exploit trust, fear, urgency, family relationships, and authority. Generative AI makes those tactics substantially more credible.

My testimony focuses on four issues. First, I will describe how generative AI is changing the nature of scams. Second, I will explain why those changes are particularly significant for older Americans. Third, I will discuss what banks and ABA are doing to protect customers. Finally, I will offer practical steps for consumers and targeted policy recommendations for Congress and federal agencies.

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