Washington, D.C. – To protect U.S. consumers from payments fraud, U.S. policymakers should demand accountability from the sectors where fraud originates and empower banks to safely share information and intervene when fraud occurs, BPI said in a response to the banking agencies’ request for information on payments fraud and a separate statement for the record for the House Financial Services Subcommittee on Oversight and Investigations’ hearing on the same topic.
“Fraud touches the banking system, but often doesn’t start there. The complexity and scale of fraud against consumers demands a comprehensive solution that holds all sectors accountable, particularly the telecom and social media platforms where fraud proliferates. Banks are leading the charge against malicious actors, but cannot fight the battle alone. The U.S. government should require that all sectors take action to prevent fraud and implement strong consumer protections, and that starts with prevention at the source.” — Greg Williamson, BPI Senior Vice President, Fraud Reduction
Large-Scale Problem. Fraud and scams are draining significant sums from Americans’ accounts, and a problem this large requires action across sectors and a cohesive national strategy. Social media and phone scams link fraudsters to their victims.
- According to the FTC, 36 percent of 2024 fraud reports involving a contact method originated via phone or text, leading to $1.5 billion in losses, and fraud reports involving social media totaled $1.9 billion in losses.
- JPMorgan Chase reported that nearly 50 percent of the fraud complaints it received in the second half of 2024 were linked to social media.
- A recent BPI member survey found that, among Zelle-related fraud in Q4 2024, where a contact method was recorded, 37 percent began with a spoofed call or text, while 52 percent involved social media.
BPI Recommendations. In these two documents, BPI recommends several policy solutions to combat fraud and scams, including:
- Social media platforms should verify advertisers to stop scams before they originate and quickly take them down once fraud is reported.
- The FCC and FTC should require telecom, social media and messaging app companies to monitor their networks and proactively notify victims.
- Banks should be given a safe harbor to intervene when necessary to protect customers.
- Congress and regulators should encourage and empower telecom providers, social media, messaging platforms and financial institutions to share data and information related to fraud and scams by creating a safe harbor to mitigate legal uncertainty about liability and antitrust concerns.
- The U.S. government should establish a National Anti-Scam Strategy to prioritize prevention strategies and align accountability.
Bottom Line: A full-scale solution to fraud requires collaboration among government and industries, and more proactive prevention from the platforms where fraud takes root. Policymakers should expand accountability across sectors, modernize regulatory requirements and enable real-time information sharing to support a cross-industry solution to this critical challenge.
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About Bank Policy Institute
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud and other information security issues.
Media Contacts
Tara Payne
Bank Policy Institute
tara.payne@bpi.com
