The Fight Against Fraud
Criminals are stealing billions from Americans. A coordinated national strategy is essential to stop them.
Criminals scam Americans out of nearly $196 billion each year, according to Federal Trade Commission estimates that account for both reported and unreported losses, by impersonating banks and other trusted entities—using using fake social media accounts, stolen personal information, and spoofed caller IDs. Their tactics blend psychological manipulation with increasingly sophisticated digital tools, making these schemes harder and harder for consumers to detect.
Banks invest billions in fraud prevention measures to protect their customers, but scammers continue to adapt, putting Americans’ hard-earned money, the broader economy and national security at risk.
To win this fight we need a coordinated national strategy with the public and private sectors working together, and all stakeholders need to do their part.
One sign of progress: the introduction of the bipartisan SCAM Act which will help shut down on scams that start on social media.
Urge your lawmakers to cosponsor the SCAM Act and stand with consumers.
Internet-enabled fraud losses in the U.S. exceeded $16.6 billion in 2024, according to the FBI.
More than one in three U.S. adults (34%) have experienced financial fraud or a scam since January 2024.*
* 2025 Bankrate Financial Fraud Survey
How Banks Fight Fraud
To stay a step ahead of criminals, banks are investing billions in advanced fraud detection tools.
- 24/7 fraud monitoring
- Fraud alerts through mobile app, texts, email, and phone
- Cutting-edge artificial intelligence
- Data encryption and biometrics
- Multifactor authentication
- Taking down phishing websites
- Shutting down phone numbers used in fake fraud alerts
Most banks have dedicated fraud-awareness web pages with:
- Up-to-date information on common scams
- Tips for spotting red flags
- Information on how to verify whether a call, text, or email is legitimate
Many also share timely alerts and educational content through email newsletters, social media, mobile apps and statement inserts, as well as in-person events, giving customers real-time guidance on emerging threats in their communities.
Americans support stronger action to combat fraud.
A recent ABA/Morning Consult survey shows consumers trust banks most to protect them from fraud—and want stronger solutions, including policy action, to stop it.
National Coordination and Strategy
We urge the White House to establish an Office of Fraud and Scam Prevention and cross-agency working groups—composed of banks, regulatory agencies, and industry stakeholders—to develop a national strategy to prevent scams and fraud.
Develop clear and consistent fraud-related regulations across all industries and have the federal regulators require all telecom companies to block spoofed CallerIDs and fake bank text messagesand social media companies take down impersonation accounts and fraudulent ads.
Congress should establish a dedicated grant program for state and local law enforcement agencies to combat financial crimes and respond to scams. Such funding would enable jurisdictions to establish Financial Crimes Intelligence Centers similar to the Texas model. Ground-level, state and local approaches that are rooted in community relationships and operational agility are often more effective at identifying and disrupting emerging crime trends than relying solely on federal interdictions.
Other ways ABA and our members are fighting fraud
- ABA expressed its strong support for the February 2026 introduction of the SCAM Act, a critical step forward in the nation's fight against fraud. The SCAM Act will require social media companies to take responsible steps to remove scam ads from their platforms.
- In November 2025, ABA also 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.
- ABA has 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 March 2026, ABA announced the expansion of the directory to include international banks.
- 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.
- 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.
Urge your lawmakers to cosponsor the SCAM Act
Consumers are scammed out of an estimated $196 billion annually. Stop scams by supporting S.3774 and H.R.7548.
Learn more about ABA’s Consumer Protection Campaigns
