Banks and bank regulators can do more to address financial fraud, but they also need third parties such as social media platforms and telecommunications providers to do their part, Acting Comptroller of the Currency Michael Hsu said yesterday.
During a speech on fraud, Hsu said many banks have already increased efforts to mitigate the problem, such as by providing customers with relevant information about trending scams and improving their fraud detection and monitoring systems. He also pointed to industry efforts such as the creation of the American Bankers Association’s Fraud Contact Directory and ABA’s partnership with the U.S. Postal Inspection Service to fight check fraud. Still, addressing fraud will require all stakeholders — from banks to social media platforms — “to each pull their weight and to act above and beyond what is currently legally required,” he said.
“The most efficient and effective way to avoid this outcome would be for each and every stakeholder to step up and do their part to combat fraud,” Hsu said. “This would mean getting in the habit of leaning down and picking up the proverbial trash instead of just walking by it, even if doing so isn’t legally required.”
Social media platforms, telecommunication companies, email hosts, the U.S. Postal Service and law enforcement need to step up when it comes to fighting fraud, he said. “Banks and bank regulators can and will need to do more to address fraud. But they cannot solve the problem on their own.”
