BPInsights: February 7, 2026

5 Policy Steps to Fight Fraud

BPI this week published a Fraud and Scam Prevention Playbook and "U.S. Against Fraud" interactive media hub to help policymakers better understand how fraud and scams originate and what steps can be taken to address this growing problem. The majority of fraud and scams begin on social media, communications and messaging platforms, and are largely facilitated by transnational criminal networks beyond the reach of law enforcement. The Playbook outlines five targeted actions that policymakers and the private sector can take to stop scams at the source.

"When one in five Americans loses money to an online scam or attack, fighting back must be a national imperative," stated Greg Baer, BPI President and CEO. "The Administration has taken vital action through its DOJ strike force targeting overseas fraud and scam centers, but we also need policies to stop the kinds of fraud occurring every day in this country. Banks are playing whack-a-mole on behalf of their customers, but we need to help them by requiring social media platforms and telecommunications companies to do their part."

Approximately 73% of U.S. adults have experienced some form of online scam or attack, with these incidents being common across all age groups. Data highlight the scale of this problem:

• $16.6 billion - Internet crime losses reported in 2024.
• $12.5 billion - Consumer fraud losses in 2024, a 25% annual increase from the previous year.
• One in five - Americans who have lost money to an online scam or attack.
• $1.9 billion - Fraud losses originating on social media (15% of all reported losses).
• Six-in-ten or more - U.S. adults who say online scams are a major problem on text messages and phone calls, emails and social media.
• 68% - U.S. adults who get scam phone calls at least weekly.
• 63% - U.S. adults who get scam emails at least weekly.
• 61% - U.S. adults who get scam text messages at least weekly.
• One-third - Adults who get scam messages on social media at least weekly.
• Nearly 50% - Fraud complaints that one major bank received in the second half of 2024 that were linked to social media.
• 15 billion - Number of scam ads one social media network shows daily to its users.
• 10% - Projected portion of one social media network's 2024 revenue from ads for scams and banned goods.

The launch is accompanied by a new interactive media hub, highlighting stories of Americans who have been targeted by fraud and scams and featuring a state-by-state interactive map showing where fraud losses are most prolific. In addition to the Playbook and media hub, BPI released two companion reports:

• Fact Sheet: Fraud vs. Scams: What's the Difference? This new fact sheet examines the differences between unauthorized fraud and authorized payment scams, a prerequisite for prescribing a solution.
• Report: What Works, What Doesn't in the Global Fight Against Scams. This report examines policies from the United Kingdom and Australia to better determine the most effective solutions.

Legislative Action. Senators Bernie Moreno (R-OH) and Ruben Gallego (D-AZ) introduced bipartisan legislation this week titled "Safeguarding Consumers from Advertising Misconduct Act" (SCAM Act), aimed at tackling malvertising and bank impersonation scams. BPI issued a statement of support.

To access the Fraud and Scam Prevention Playbook, interactive media hub and other resources, see below:

• Fraud and Scam Prevention Playbook
• U.S. Against Fraud: Interactive Media Hub
• Report: What Works, What Doesn't in the Global Fight Against Scams
• Fact Sheet: Fraud vs. Scams: What's the Difference?

Five Key Things

1. Fed Finalizes 2026 Stress Test Scenarios

The Federal Reserve on Wednesday finalized the scenarios for this year's stress test. The final scenarios are substantially similar to the versions proposed in October. The Fed also voted to maintain current stress capital buffer requirements until 2027, "when new requirements can be calculated based on models that take public feedback into consideration." The Fed has solicited public comment on its stress testing models and scenarios in line with a legal challenge by BPI and other organizations seeking more transparency in the process.

Scenario Details. This year's scenario includes a nearly 5.5-percentage-point unemployment rate rise to a peak of 10 percent, as well as severe market volatility, a widening of corporate bond spreads and a collapse in asset prices. The asset price collapse includes a 30 percent decline in house prices and a 39 percent decline in commercial real estate prices. Large banks with significant trading or custody operations must simulate the unexpected default of their largest counterparty. Trading banks will also face a global market shock component, testing the resilience of their trading operations to market turmoil. "The final scenarios include two revisions to the global market shock component to improve consistency across shocks applied to similar exposures and enhance plausibility," the Fed stated.

2. Banks Caution Against Relaxing Standards for Fed Account Access to Preserve Financial Stability

The Bank Policy Institute, Financial Services Forum and The Clearing House Association responded Friday to the Federal Reserve's request for input on a special-purpose payment account, sometimes referred to as a "skinny master account." This proposal would relax Federal Reserve master account access standards by introducing a new type of account aimed at payments companies. The associations warned that granting direct access to the Fed's payment infrastructure to lesser-regulated institutions without sufficient guardrails could increase payment system risks and undermine financial stability.

"​The United States' payment system is based on the core principles of trust, security and resiliency," the associations wrote. "We support innovation in the payments ecosystem that consistently upholds these principles and appropriately limits systemic and operational risks."

A "master account" serves as a bank account for banks. It allows financial institutions to clear and settle transactions on behalf of their customers. The Federal Reserve Board has adopted rigorous account access guidelines for master accounts, which historically have been granted primarily to insured depository institutions and other depository institutions engaged in low-risk activities. This creates a safer and more efficient payments system because all participants within this system are vetted and generally subject to robust, ongoing supervision.

The Fed's proposal would open the door to the payments system for institutions that do not have federal deposit insurance and are not subject to comprehensive prudential regulation and supervision. The proposal identifies a few important safeguards to address the risks presented by these applicants, such as prohibiting overdrafts, discount window access and interest on account balances. The associations support these protections but encourage the Fed to go further. To learn more, click here.

3. Top Takeaways from Secretary Bessent on the Hill

BPI this week highlighted key takeaways from Treasury Secretary Scott Bessent's testimony at House and Senate hearings this week. For the full highlights, click here.

1. Stablecoin legislation should avoid deposit flight that could deprive communities of lending.

Sen. Cynthia Lummis (R-WY): "Among the things that have challenged us in these last months, is concern by community banks and big banks that the stablecoin bill, the GENIUS Act and market structure [bill] could cause a bleeding of deposits from small banks. What's your reaction to that concern?"

Secretary Scott Bessent: "Look, I've been a champion of these small banks, and deposit volatility is very undesirable, because it is the stability of those deposits that allows them to lend into their communities, ag[riculture], small business, real estate and we will continue to work to make sure that there is no deposit volatility associated with this."

2. Congress remains committed to bipartisan market structure and stablecoin legislation.

Sen. Angela Alsobrooks (D-MD): "Before I get to my questions, I want to make a quick comment on market structure legislation. Mr. Secretary, I speak for many of my colleagues when I say that we really want to get to a good, bipartisan bill. We want to get it done. And I've appreciated working with your team, both during the GENIUS Act and market structure process, and really appreciate their attention to the issue of stablecoin paying yield and interest. I am confident, feel really good we are going to get a bipartisan compromise that protects innovation and our community banks, and I really encourage your continued work on that issue."

3. Treasury is on track to issue rules implementing the GENIUS Act by July 2026.

Rep. Bryan Steil (R-WI): "I chair the Digital Assets Subcommittee. We passed and [the President] signed into law the STABLE [GENIUS] Act, setting forward legislation as it relates to stablecoins. Treasury is required to complete implementing regulations by July 18 of this year. Are you going to hit the deadline and are there any impediments preventing you from hitting that July 18 deadline?"

Secretary Scott Bessent: "I don't see any impediments at present, and if we're going to hit them, we will notify you and the committee."

4. Duplicative regulation and supervision costs consumers.

Chairman Tim Scott (R-SC): "Reassessing bank regulatory and supervisory frameworks to remove undue burdens isn't about weakening safeguards. It's about making sure the financial system works as intended for the people it serves. Coordination matters too. Businesses should not be caught in the crossfire, conflicting rules, duplicative supervision or regulatory whiplash. When regulators fail to coordinate, the consequences don't stay in Washington. They show up in higher costs, fewer choices and less access at the kitchen table."

4. Tillis Stands Firm on Fed Nominee Block

Sen. Thom Tillis (R-NC) reiterated his intention to use his vote on the Senate Banking Committee to block nominations to the Federal Reserve Board, according to POLITICO this week. A presidential pardon of Federal Reserve Chair Jerome Powell, who is under Department of Justice investigation over his testimony on Fed building renovations, would not suffice to change Tillis' plans, according to the Senator. Tillis' call for the DOJ to resolve its investigation may preclude the swift confirmation of Kevin Warsh, President Trump's pick to succeed Powell as chair.

Scott on Powell. Banking Committee Chair Tim Scott (R-SC) said he does not believe "that [Powell] committed a crime during the hearing" in which Powell discussed Fed renovation costs. Scott, in a Fox Business interview this week, criticized Powell's performance as Fed chair but said "ineptness or being incompetent is not a criminal act."

5. The Role of Board Technology Committees for Financial Services Companies

BPI published a paper this week offering takeaways from its survey of member banks on how boards of directors are evolving to oversee technology. AI, data governance, cybersecurity and resilience have rapidly expanded as focus areas for bank boards in recent years. As banks deploy advanced technology and modernize their platforms, boards are focusing on sustained, consistent oversight of technology strategy and risk, emerging trends and major initiatives.

Benchmarking Insights. This report synthesizes our survey findings and provides benchmarking insights into how financial institutions' boards are structuring their technology oversight today, covering three primary areas: the formation and use of technology committees with an emphasis on determining the prevalence of technology committees, primary areas of focus and trends related to strategy, risk, innovation and resilience; the charter, structure, composition and frequency of committee meetings, including interaction with risk and audit committees and the full board; and how firms are providing educational opportunities for board members to continuously develop broad technology expertise.

Industry in Transition. The results of this survey provide a clear view of an industry in transition: technology oversight is less frequently rolled up under audit or risk committees, nor is it treated predominantly as a compliance or operational matter. Instead, many banks are establishing dedicated technology committees to focus not only on cybersecurity and resilience, but to assess major initiatives and emerging technology and provide strategic guidance.

In Case You Missed It

Market Participant Treasury Briefing Highlights Bank Demand Factors

On Wednesday, the Treasury published the latest set of materials from its quarterly briefing by the Treasury Advisory Borrowing Council (TBAC), which consists of private-sector Treasury market participants.  TBAC's briefings cover current market conditions and special "charges" requested by Treasury.  One of the charges this quarter covered "Trends in demand for U.S. Treasury securities."

The trends include the recent shift from shedding to slowly acquiring securities by the Federal Reserve, stalled foreign official demand for Treasuries, and the reduced diversification benefits of investing in Treasuries.  The briefing also noted that commercial banks were poised to expand their investments both because deposits were projected to grow and because of recent and expected changes to regulations. 

The changes include the recent recalibration of the enhanced supplementary leverage ratio (eSLR) so that it was less likely to bind.  The eSLR imposes the same capital requirement on all bank assets, treating Treasury bills the same as subprime mortgages.  When it is the binding, it discourages investment in safer assets such as Treasuries.  The similar Tier 1 leverage ratio requirement, however, remains binding for many banks.  Anticipated changes to the capital surcharge imposed on global systemically important banks (GSIBs) could also reduce the current penalties the surcharge imposes for owning Treasuries and participating in Treasury markets.

The TBAC also noted that the Fed was expected to be making greater use of its standing repo operations, making Treasuries, which are allowable collateral for the operations, more attractive as a liquidity management tool for banks.

The TBAC materials are available here and the deck on trends in Treasuries demand is available here.

Global Bond Sales Reach $1 Trillion at 'Fastest Pace Ever'

Global publicly syndicated bond issuance reached the $1 trillion mark on Monday, Feb. 2 - record time compared to previous years, according to Bloomberg. The early milestone likely reflects borrowers' rush to lock in cheaper borrowing costs. In comparison, the threshold was hit on Feb. 7, 2024 and Feb. 11, 2025. More than 40 percent of the bond sales this year consisted of government bonds, and nearly 35 percent comprised bonds sold by financial firms.

The Crypto Ledger

Here's the latest in crypto.

• Market Structure Meeting. Bank trades including BPI released the following joint statement after their White House meeting on crypto market structure legislation: "We want to thank the administration for hosting today's constructive conversation and for recognizing the importance of the banking industry's perspective on market structure legislation. As we shared in the meeting, we must ensure that any legislation supports the local lending to families and small businesses that drives economic growth and protects the safety and soundness of our financial system. Banks of all sizes will continue to work with lawmakers, the White House and other stakeholders to help develop thoughtful, effective policy around digital assets."
• Bitcoin ATM Operator Sued by Massachusetts AG. A major bitcoin ATM operator was accused by Massachusetts' state attorney general of failing to protect customers from crypto scams. The AG's complaint, filed this week, alleges that Bitcoin Depot Operating LLC is aware that scammers use its kiosks to defraud victims but chooses to do nothing because "scams provide a 'major revenue source' for the business."
• Delaware Court Keeps Coinbase Insider Trading Suit Alive. The Delaware Chancery Court declined to terminate a case accusing Coinbase insiders of profiting ahead of a steep share price drop. The crypto firm's special litigation committee failed to meet Delaware's standards of independence, according to Law360.

Traversing the Pond

Here's the latest in international banking policy.

• FSB Releases 2026 Agenda. The Financial Stability Board this week released its 2026 work program, which includes priorities such as nonbank financial intermediation, cross-border payments, digital innovation and AI and modernization of financial regulation and supervision. The latter has been a key priority for U.S. regulators.
• FSB Flags Repo Market Risks. The FSB this week also released a report highlighting financial stability risks in repo markets. Government bond-backed repo markets are large and critical for short-term funding and market liquidity, but several vulnerabilities could threaten the stability of the global financial system, according to the report. Vulnerabilities include leverage buildup, heavy reliance on short-term funding and high concentration among a small set of participants. The FSB calls for authorities to close data gaps, strengthen surveillance and consider measures to contain leverage and liquidity risks, particularly among nonbanks.
• Merz Emphasizes Capital Markets Reform. German Chancellor Friedrich Merz stressed the necessity of reforming the EU's capital markets, which he said would boost Europe's global competitiveness. "Perhaps the greatest lever we have for our sovereignty and competitiveness is finally creating large, liquid capital pools and an effective and efficient European financial market infrastructure in the relevant areas," Merz said this week.

Wells Fargo Cuts Ties with Shareholder Proxy Adviser

Wells Fargo's wealth and investment management division recently severed ties with Institutional Shareholder Services, a shareholder proxy adviser. The bank will make voting decisions on shareholder proposals without reliance on proxy advisers. The decision follows JPMorgan's similar action in January, suggesting a rising trend among large banks.

BPI Job Bank

• AVP, Graphic Designer
• AVP, Research Analyst
• Junior Event Planner & Administrative Coordinator

Member News

Fifth Third Completes Merger with Comerica

Fifth Third Bancorp this week announced it has closed its merger with Comerica Inc., creating the ninth-largest U.S. bank with about $294 billion in assets. The combined institution will solidify Fifth Third's footprint in the Midwest and build out its presence in the Southeast, Texas and California.

Santander Grows U.S. Presence with Webster Acquisition

Banco Santander this week announced an agreement to acquire Webster Financial Corporation, the holding company for Webster Bank, headquartered in Stamford, CT. The acquisition will significantly expand Santander's scale and deposit base in the U.S. market.

Upcoming Events

• 2/20/2026: Columbia/BPI Annual Bank Regulation Research Conference: Announcement and Call for Papers