WASHINGTON—Paul Benda, executive vice president of risk, fraud and cybersecurity at the American Bankers Association, urged Congress last week to create a national fraud prevention strategy, including a new Office of Scam and Fraud Prevention within the Executive Office of the President, as part of his testimony before the House Financial Services Subcommittee on Oversight and Investigations.
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.
“Banks are working every day to protect their customers from fraud by investing in new technologies, deploying public relations campaigns to educate consumers and small businesses about old and new scams, and partnering with law enforcement and other federal agencies on new initiatives to combat fraud,” Benda said. “Yet our industry recognizes that there is more work to do, and banks cannot stop criminals by themselves. Every player in the fraud ecosystem must play a role; from the telecommunications firms to the social media companies to the Postal Service.”
Benda also urged Congress and regulators to:
- Close loopholes that enable impersonation scams via spoofed caller IDs and fake social media accounts
- Enhance collaboration with law enforcement and regulators to improve fraud detection and prosecution
- Improve real-time fraud information sharing across industries and government agencies
- Continue to enhance bank anti-fraud operations to ensure they match the sophistication of modern fraud, including interbank recovery mechanisms and customer experience in fraud resolution
- Support consumer education campaigns to empower individuals against scams