“ABA applauds Sens. Gallego and Moreno for their leadership in introducing the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, a critical step forward in the nation’s fight against fraud. Millions of Americans lose billions of dollars a year to scams that start on social media platforms. Banks of all sizes invest significant resources to detect and stop fraud, and Americans appreciate those efforts, but we need to prevent scams before they ever reach a bank. The SCAM Act simply asks social media companies to put consumers first by taking responsible steps to remove scammers from their platforms. Protecting Americans from fraud should be a bipartisan, national priority, and ABA encourages all lawmakers to join Sens. Gallego and Moreno in supporting the SCAM Act and sticking it to the scammers.”
Additional Background
- ABA has been a leader in the fight against fraud, including launching the industry-wide consumer education campaigns #BanksNeverAskThat and #PracticeSafeChecks, which have reached millions of Americans with practical fraud prevention tips.
- ABA has also partnered with the U.S. Postal Inspection Service and law enforcement agencies to combat check fraud, which has surged since the pandemic, and launched a free online platform that allows member banks to more easily verify payee information for government checks using the Treasury Department’s Treasury Check Verification System.
- In 2025, ABA created an industry-wide Fraud Contact Directory to help make it easier for banks across the country to identify and resolve potential instances of fraud.
- In September 2025, Paul Benda, executive vice president of risk, fraud and cybersecurity at ABA and chair of the International Banking Federation’s Fraud and Scams Taskforce, testified before the House Financial Services Subcommittee on Oversight and Investigations during a hearing focused on fraud and the threat it poses to American families. 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. Paul Benda also hosts the ABA Fraudcast podcast, and the ABA Foundation has other helpful tips for consumers on how to spot fraud and scams including this recent infographic developed with the FBI on deepfake media scams.
- In November 2025, ABA welcomed the Justice Department’s launch of an interagency Scam Center Strike Force to dismantle Southeast Asian scam centers responsible for defrauding millions of Americans every year.