CBA’s Fraud Management Committee Chair to Congress: Banks Are Leading Way to Combat Fraud and Scams but Need Whole-of-Government Action

WASHINGTON, D.C. - Testifying before the U.S. House Financial Services Committee at a hearing entitled "Fighting Fraud on the Front Lines: Challenges and Opportunities for Financial Institutions" today, Consumer Bankers Association (CBA) Fraud Management Committee Chair Patrick McDade will highlight how United States is facing a rapidly escalating fraud and scam epidemic driven largely by criminal activity occurring outside regulated banking channels-particularly on social media, telecom networks, and online platforms.

McDade, who is also Senior Vice President, Fraud Risk and Technology Risk Management, Head of Internal Investigations at EverBank, will urge Congress and the Administration to take additional steps to unify reporting, modernize fraud tools, and hold nonbank platforms accountable for the environments where scams originate. CBA is calling for an Executive Order that would provide immediate structural alignment across federal agencies while longer-term statutory reforms are developed and considered.

Key excerpts from McDade's prepared testimony are below.

On the importance of differentiating between fraud and scams:

"Successfully combating fraud and scams requires a robust understanding of the key differences between the two illicit activities, as their unique features should dictate the methods used to counter each of them. Bank fraud generally involves an attempt to obtain money that is owned by or under the custody or control of a financial institution by false pretenses or misrepresentation […] Scams, on the other hand, involve criminals deceiving customers directly, often through phone, text, or online communication and convincing the bank's customers to send money out of the bank under false pretenses. Notably, scams generally occur outside of the bank's control environment and the first time the bank becomes aware of the transaction is when the customer requests that their money be moved."

On how America's leading Main Street banks are committed to combating fraud and scams:

"Financial institutions are deeply committed to safeguarding their customers, especially individuals who may be more vulnerable, such as older adults. This commitment extends far beyond simply meeting regulatory requirements. It reflects a genuine dedication to protecting customers' financial security, promoting their overall wellbeing, and ensuring they can engage with and conduct their financial services needs confidently and safely."

On how the Administration could continue to supplement Congressional legislation to prompt action to coordinate a whole-of-government approach to combat this issue:

"The Administration could issue an Executive Order establishing a formal, government-wide framework for combating fraud and scams. Such an Executive Order would not replace legislative action, nor would it alter Congress's important oversight role. Rather, it would provide immediate structural alignment across agencies while longer-term statutory reforms are developed and considered."

To read McDade's full written testimony, click HERE. To watch the hearing via livestream, click HERE.

CBA Advocacy

• To read a CBA comment letter sent in response to a joint request for information issued by the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation regarding potential actions to address payments fraud, click HERE.
• To read a summary of the cross-industry convening CBA hosted in July 2024 on combating fraud and scams, click HERE.
• To read the white paper that CBA commissioned in 2024 on combating fraud and scams, click HERE.
• To read a recent op-ed from CBA Vice President, Associate General Counsel Brian Fritzsche published in Open Banker calling for a coordinated, national response to protect consumers from increasingly sophisticated financial fraud and scams, click HERE.
• To read an April 2025 op-ed in The Hill from CBA President and CEO Lindsey Johnson calling for lawmakers to support a whole-of-government approach to combat fraud and scams, click HERE.