10/28/2024

ABA’s Nichols calls on Congress, White House to address fraud crisis

ABA Banking Journal

Calling fraud an “insidious problem” that affects the financial and psychological well-being of millions of Americans, American Bankers Association President and CEO Rob Nichols today called for immediate government action to develop a national fraud and scam prevention strategy. Speaking to bankers at the 2024 Annual Convention in New York City, Nichols emphasized that the fight against fraud requires “a whole-of government approach… that starts at the very top.”

Specifically, Nichols called on the next administration and Congress to create and fund an Office of Scam and Fraud Prevention and develop a national strategy that will address all parts of the fraud ecosystem and help reduce the number of Americans who fall victim to scams. According to Federal Trade Commission Data from 2023, fraud losses in the U.S. topped 23.7 billion, though that figure could be as high as 158 billion, according to agency estimates.

Nichols also called on the Federal Communications Commissions to develop a database of reported SPAM text messages that would be available for all legitimate businesses to access, and require that telecoms and messaging apps submit all SPAM messages reported by consumers to the database. Having this tool would make it easier for banks and others to more closely monitor how scam topics are evolving and educate their customers more effectively, he said.