The American Bankers Association presented lawmakers with a national blueprint for fighting fraud and scams, which included requiring telecommunications and social media companies to do their part and giving states and local governments the resources to target financial crimes.
The Joint Economic Committee – which comprises members from both the House and Senate – will hold a hearing today on modernizing federal approaches to combating fraud and scams. In a statement submitted ahead of the hearing, ABA pointed to the long history of banks as first adopters of new technologies to protect customers.
However, telecommunications and social media companies need to do more to fight fraud on their end, ABA said. Banks also need strong partnerships with law enforcement, and they welcome the chance to partner with community organizations to address the problem.
“Banks clearly play a key role in…
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MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.