The U.S. Financial Services Committee’s Subcommittee on Oversight and Investigations held a hearing on the growing impact of financial fraud on American consumers, including increased check fraud and scams targeting seniors, and examined how federal agencies could better use their authorities and improve consumer outreach. Committee leaders also sent a letter to Federal Reserve Chair Jerome Powell requesting information on the Federal Reserve’s efforts to address the rise in fraud and communicate with consumers. Members and witnesses highlighted a wide range of schemes, including check washing, identity theft, bank transfer and payment scams, romance scams, and artificial intelligence-enabled impersonation using duplicated voices and images. The hearing cited 2.6 million reported fraud cases in the United States in 2024 and USD 12.5 billion in reported losses, with a focus on sophisticated, often transnational criminal networks and low recovery prospects. Witnesses called for a broader ecosystem response, including telecom action against spoofing, social media steps to remove impersonation accounts, stronger mail security to reduce check theft and alteration, and more coordinated government intelligence-sharing and disruption of scam networks.
U.S. Financial Services Committee 2025-09-18
U.S. Financial Services Committee reviews rising financial fraud and asks Federal Reserve for details on mitigation and consumer outreach
The U.S. Financial Services Committee’s Subcommittee on Oversight and Investigations held a hearing on the increasing impact of financial fraud on American consumers, highlighting schemes like check washing, identity theft, and AI-enabled impersonation. The hearing noted 2.6 million fraud cases in 2024 with USD 12.5 billion in losses, emphasizing transnational networks and low recovery rates. Witnesses urged a comprehensive response involving telecom, social media, mail security, and enhanced government intelligence-sharing.