IPA Supports Coordinated Action to Combat Financial Fraud and Scams

Financial fraud and scams are becoming increasingly sophisticated, creating new challenges for consumers, financial institutions, regulators and law enforcement.

In a recent letter to the House Financial Services Committee, the Innovative Payments Association (IPA) expressed its support for the Committee’s report, Fighting Back: A Policy Framework for Combating the Rise of Financial Fraud & Scams, and its broader efforts to address the growing threat of financial fraud.

The Committee’s report examines how rapidly evolving technologies, including artificial intelligence, are being used to target Americans through increasingly sophisticated scams. It also recognizes the significant investments financial institutions and their partners already make to identify and mitigate fraud.

For the payments industry, protecting the integrity of the financial system and the consumers who rely on it is a critical priority. Mobile wallets, fintech deposit accounts, prepaid cards, peer-to-peer payments and other payment products operate within an extensive regulatory framework, but fighting increasingly complex fraud schemes requires cooperation that extends beyond any single institution, regulator or industry.

IPA agrees with the Committee that there is no single solution to financial fraud. A coordinated approach that brings together federal and state authorities, law enforcement, regulators, financial institutions, technology companies and other stakeholders is essential.

In its letter, IPA highlights several areas where progress can be made, including stronger coordination among federal agencies and between federal and state authorities, greater information sharing with law enforcement, and appropriate regulatory flexibility that allows financial institutions and their partners to respond effectively when fraud is suspected.

IPA also expressed support for a number of bipartisan legislative proposals identified by the Committee that would strengthen fraud prevention, enforcement and the government's ability to respond to emerging threats.
As policymakers continue examining ways to protect consumers and the U.S. payments system, IPA and its members look forward to serving as a resource and working with Congress, regulators and other stakeholders on practical solutions.
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Download IPA’s full letter to the House Financial Services Committee to learn more about our recommendations and the bipartisan proposals we support.

Download Comment Letter