Press Releases

Today, the Subcommittee on Financial Institutions, chaired by Rep. Andy Barr (KY-06), examined how financial institutions are protecting Americans from the rising occurrence of financial fraud and the challenges they face within the broader anti-fraud ecosystem.

On the Rise of Financial Fraud Across our Country:

Full Committee Chairman French Hill (AR-02) said, "Fraud and scams are not a new challenge, but the scale and complexity of the problem, are increasing rapidly and posing greater costs on American families and on the financial services arena and on our small businesses… Our banks and credit unions serve on the frontlines of this fight, working every day to safeguard their customers and we need an all of government approach. That’s why I commend the work of this Committee.”

Subcommittee Chairman Barr said, "Today’s hearing continues this Committee’s work to combat the growing threat of financial fraud and scams harming American families, seniors, and small businesses across our country. Fraud and scam losses are not abstract statistics – they represent retirement savings wiped out, college funds drained, and small business savings accounts emptied overnight.”

Subcommittee on Oversight and Investigations Chairman Dan Meuser (PA-09) said, “The FTC reported $12.5 billion… in fraud losses last year. We, of course, know the real numbers are far higher. By the way, between 2021 and 2024, CBO reported scams and fraud was up 110% under the CFPB’s oversight. So, doubling down on failure is pretty much the last thing that we're going to do to solve this crisis. Fraud and scam roundtables have been held by our committees, telecom companies have been invited in, tech platforms, hosting tele-town halls with community banks, working with our U.S. Attorney General's office, as well as state attorney general's offices. We've been working at it since the beginning of this Congress, and we are making progress. And we are as determined to fight this crisis situation as you folks clearly are.”

Rep. William Timmons (SC-04) said, “Financial fraud and scams are becoming one of the fastest growing financial crimes facing Americans. Increasingly, these schemes are carried out by large scale criminal networks operating overseas, often using sophisticated technology, coordinated infrastructure, and social engineering tactics to target Americans at scale. As these operations evolve, financial institutions are often the first line of defense. Banks and credit unions are responsible for detecting suspicious activity, protecting their customers, and coordinating with law enforcement. But as fraud networks grow more complex and increasingly operate across borders, it raises serious questions about whether our current legal and regulatory frameworks are fully equipped to support the institutions working to stop these crimes.”

On Methods Used in Scams:

Full Committee Vice Chairman Bill Huizenga (MI-04) said, “With readily available information and images that are out in the general public on the internet and other places, there are many many people who are victims as both scam targets and as vehicles to go after those victims.”

Small Business Committee Chairman Roger Williams (TX-25) said, “Many scams targeting small businesses involve criminals impersonating vendors, bankers, or contractors. These scams often start through spoofed phone calls, email promises, PR social media messaging before the transaction even reaches the banking system. Once the payment is sent through wires or peer-to-peer transfers, it can be extremely difficult, as we've heard already, to recover these funds.”

Witnesses Echoed the Work of the Committee:

Mrs. Gay Dempsey, Chief Executive Officer, Bank of Lincoln County, on behalf of the Independent Community Bankers of America (ICBA) said, “I am a lifelong community banker, and I have witnessed firsthand the impact of fraud on our customers and community and have seen the financial ruin that fraud can produce. Community banks like mine are on the front lines, spending significant time and resources to educate customers and identify and mitigate fraud. Coordination among financial institutions, law enforcement, and government at every level is necessary to combat this urgent problem… But I must stress that additional mandates on community banks would only harm our ability to fight fraud.”

Mr. Patrick McDade, Senior Vice President for Fraud and Technology Risk Management, EverBank, on behalf of Consumer Bankers Association (CBA) said, “The steps this Committee and specific members have taken in a bipartisan manner demonstrate policymakers’ aim to tackle this consumer crisis. A number of legislative proposals have been introduced and will be extremely meaningful to address the numerous complicated facets of scams. But even more will be needed, including Administrative and agency actions to create an even greater unified approach across government and the private sector to educate consumers, to investigate and mitigate scams, and prosecute bad actors.”

Ms. Kate McKune, General Counsel, Park Community Credit Union, on behalf of America’s Credit Unions (ACU) said, “America’s Credit Unions supports greater interagency coordination, expanded information sharing authority, and close collaboration with law enforcement to address fraud. An effective national strategy to mitigate fraud should also prioritize the following objectives: 1. Encourage the use of innovative technology, including artificial intelligence, to improve early warning capabilities; 2. Offer technical assistance and grants to support efficient information exchange between small, community financial institutions and other payment system stakeholders; 3. Promote regulatory modernization (particularly for funds availability rules); and, 4. Prioritize consumer education.”

Mr. Joseph J. Schuster, Partner, Ballard Spahr LLP said, “Fraud losses and fraud-prevention expenditures also carry broader economic consequences. Even when institutions absorb fraud losses directly, those losses affect capital allocation, operational costs, and investment decisions. Over time, fraud operates as a distributed cost across the customer base, impacting pricing, product availability, credit access, and innovation investment. Effective fraud prevention therefore serves not only institutional interests but systemic efficiency.”

###