CBA Urges Government Collaboration to Prevent Fraud and Scams

February 1, 2024

WASHINGTON, D.C. – The Consumer Bankers Association (CBA) this week submitted a letter ahead of the U.S. Senate Committee on Banking, Housing, and Urban Affairs’ hearing examining rising instances of fraud and scams, in which CBA highlights the most significant fraud threats facing consumers today and the leading role the banking industry has taken to identify and counter these threats to consumers. In the letter, CBA states:

“Banks have been on the front lines dedicating enormous resources – billions of dollars and thousands of hours by dedicated teams each year – to fight fraud and scams and continue to enhance these efforts in response to increasingly prevalent and sophisticated methods used by criminals, many of whom operate under state sponsored or organized crime rings. Some of these industry efforts include working to prevent, detect, and mitigate scams through education, and deploying advanced technologies to monitor, authenticate, and reduce risk, as well as consistently evolving and adapting customer protection measures, including real-time safety notifications and alerts, to address the continually changing nature of these threats.” 

Even with significant progress, fraud needs to be combatted in collaboration with regulatory agencies, like the CFPB, and other industries. In the letter, CBA outlines ways in which the CFPB can work in tandem with banks to prevent fraud:

“CBA calls on the Consumer Financial Protection Bureau (CFPB) to work collaboratively with other financial regulators, law enforcement agencies, and the private sector on a cross-industry basis (including telecommunications, credit reporting, non-bank financial and technology providers, and financial institutions) to educate consumers on fraud and scams and how to avoid them. One of the most meaningful ways the Bureau can partner with the industry is by using the substantial Civil Penalty Fund balance to conduct broader consumer education, which is one of the six “primary functions” of the Bureau and is essential for consumer protection. Aside from these helpful measures, the CFPB should refrain from taking any action that would run contrary to any prudential regulatory requirement and make it more difficult for banks to prevent fraud and scams.”

The letter also highlights the Senate’s Financial Services and General Government Appropriations bill report for its helpful language on fraud and scams, as well as urging the Treasury Department to engage in private-public partnership to combat these issues.

To read the full letter, click HERE.

CBA Advocacy

  • In a letter sent to CFPB Director Chopra, CBA President and CEO Lindsey Johnson called for a whole-of-government approach to combat the rise in scams and prevent consumer harm. To read the full letter, click HERE.
  • A national survey released last year from CBA found that an overwhelming majority – 8 in 10 Americans (83 percent) – believe banks are doing a good job helping them avoid scams. To learn more,   click HERE.
  • To read CBA’s most recent blog highlighting some of the many ways banks are working to protect consumers from falling prey to scams and fraudsters, click HERE