The U.S. Financial Services Committee convened a Financial Institutions Subcommittee hearing on the role of banks and credit unions in the broader anti-fraud ecosystem. In prepared opening remarks, Subcommittee Chairman Andy Barr framed the session around rising fraud and scam harms and cited FBI data showing reported US cybercrime losses of USD 16.6 billion in 2024, up 33 percent year on year. Barr described increasingly sophisticated fraud techniques, including the use of artificial intelligence, voice cloning, spoofed caller IDs, fake investment platforms and coordinated money mule networks, often operating across social media, telecommunications infrastructure and cross-border channels. He argued that banks and credit unions are frequently the last line of defense and highlighted industry investments in data analytics, machine learning, real-time monitoring and customer education, alongside community bank and credit union efforts such as training, enhanced check verification and law enforcement partnerships. The remarks also pointed to structural constraints, including outdated information-sharing rules affected by privacy statutes, antitrust concerns and uncertainty under consumer reporting laws, Regulation CC funds-availability requirements that can be exploited to move funds before fraud is detected, limited regulator familiarity with AI and machine learning when setting expectations, and law enforcement resource and coordination challenges. Barr cautioned against proposals that would place liability on financial institutions for consumer-authorized scam payments, arguing they would not address root causes and could create perverse incentives and strain smaller institutions. Barr indicated the hearing would inform further work with witnesses and Committee colleagues on measures to strengthen defenses against financial fraud and scams.

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