Press Releases

Today, the Subcommittee on Oversight and Investigations, led by Subcommittee Chair Dan Meuser (PA-09), held a hearing examining the growing problem of financial fraud affecting American families, including the rise in check fraud and senior scams. The subcommittee also explored how federal agencies can better use their authority to combat this issue and improve consumer outreach.

Full Committee Chairman French Hill (AR-02), O&I Subcommittee Chair Meuser, and Financial Institutions Subcommittee Chair Andy Barr (KY-06), sent a letter to Federal Reserve Chairman Jerome Powell requesting information on the Fed’s efforts to mitigate the increase in financial fraud and conduct outreach to consumers.

Read the letter HERE.

On the Bad Actors Behind Financial Fraud:

“The criminals behind fraud and scams are sophisticated. They use a wide variety of schemes: check fraud, romance scams, bank transfer fraud, identity theft, payment scams, and more. And they target all segments of the population. Individuals of all ages are falling victim,” said Subcommittee Chair Meuser.

On the Broad Scope of Financial Fraud:

 "Over the past three years, one state bank trade association that I've gone to after another - in Arkansas, Georgia, Mississippi, Louisiana, Texas, Ohio, among others - this has been the top topic. Our state attorney generals are witnessing accelerated check fraud, debit fraud, text phishing are all targeting Americans and generating unprecedented losses to both consumers and the financial system. Personally, our family was a victim of check fraud thanks to the U.S. Post Office," declared Chairman Hill.

 “… AI [is] being used to duplicate voice, to duplicate images, I think that's one of the things that's uniquely challenging. You can think of fraud against calling maybe a grandma or grandpa imitating the voice of a grandson or granddaughter saying that they need assistance taking that grandparent fraud to the next step. It's uniquely challenging. Especially if that's sure sounds like your grandson or granddaughter who needs quick help. And of course, it's a criminal on the other end saying send $100 to this location,” said Rep. Bryan Steil (WI-01).

 “This country, and the individuals in it, are losing billions of dollars each year to sophisticated scams. In 2024, there were reported 2.6 million fraud cases in the United States. It resulted in $12.5 billion being scammed from individuals, many of those dollars going overseas. These aren't just national statistics. They're real, everyday Americans - they’re families, friends, communities, veterans, and seniors, not just in my district, but across the country,” said Rep. Zach Nunn (IA-03).

 “This is not a small scam. This is a serious number, at least in the communities that we're living in. … So many of these criminal syndicates are not within the borders of the United States, and the likelihood of recovering these dollars is very, very slim, given the realities of these crimes,” said Rep. Mike Haridopolos (FL-08).

 “Financial fraud is touching every corner of our society, and no demographic is immune. This isn't a Republican issue, a Democratic issue. This is an issue that impacts everyone, you know, from sophisticated AI driven scams to check washing, you name it, criminals are stealing billions from seniors, veterans, and working families. Really anybody. I know of stories where these crimes have drained retirement accounts, wiped out savings, and really, if not put in check in some ways erode our financial system,” said Rep. Tim Moore (NC-14).

On Covid-19's Lasting Effect on Fraud:

During his questioning, Rep. Barry Loudermilk (GA-11) asked, “Has the pandemic actually helped create new criminal networks?” To which Mr. Paul Benda, Executive Vice President, Risk, Fraud & Cybersecurity, American Bankers Association replied, “... what we've seen is the unemployment insurance fraud created that market for the personally identifiable information, but it also created a belief that this white-collar crime isn't getting enforced. So, check fraud vastly increased after 2020. Identity theft increased after 2020. These white-collar financial crimes have vastly gone up and unfortunately, enforcement due to lack of resources simply hasn't kept up.”

Witnesses Echoed the Work of the Committee:

Mr. Paul Benda, Executive Vice President, Risk, Fraud & Cybersecurity, American Bankers Association said, “Combating these criminals requires not just banks to act but all entities involved in the scam and fraud ecosystem. It’s imperative for the telecommunications companies and their regulators to take action to prevent criminals from spoofing legitimate names and phone numbers to convince customers they are speaking with a bank. Also, social media companies should take steps to proactively root out accounts pretending to be bank employees or financial advisors to convince people to put their money into their investment scams. In addition, the postal service must improve the security of the mail system so that when someone mails a check, it will not get intercepted, stolen, altered or cashed by the criminal.”

Mr. Ian Bednowitz, General Manager, LifeLock at Gen said, “Fraud today is not just a technological problem; it is a psychological one. Criminals have learned to combine the precision of stolen data with the power of emotional manipulation. These scams are often triggered or amplified by emotionally charged events, a natural disaster like the recent floods in Texas or fires in California, a major political moment, or a sudden financial disruption. In those high-stress situations, people are more vulnerable to manipulation, and scammers exploit that urgency. Fraud tactics now rely just as much on emotional pressure as on technology, targeting individuals at their most vulnerable.”

Ms. Kate Griffin, Director, National Task Force on Fraud and Scam Prevention, Aspen Institute Financial Security Program said, “To counter this challenge effectively, government responses must evolve. Increasing the nation's capability to stop scams before they happen requires policies that drive a pivot toward preventing financial crime. Law enforcement agencies will have to become more focused on disrupting scam criminals. The U.S. Intelligence Community will have to prioritize detecting transnational scam activity and working to protect Americans from it. All agencies will have to become more coordinated and share more actionable scam intelligence with each other and with companies; and they will have to increase their capacity to analyze information and act on it to effectively counter the speed and technical sophistication of transnational scam criminals.”