ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Compliance and Risk

Fraud Watch: The value of a multipronged strategy

The value of building that response playbook and focusing on education and planning.

July 8, 2025
Reading Time: 3 mins read
Fraud Watch: The value of a multipronged strategy

By Khalil Garriott

With more than one in three Americans having experienced financial fraud or a scam since January 2024 — 37% of whom have lost money — fraud has become pervasive.

According to a new Bankrate survey, baby boomers and Generation X are the most likely to experience financial scams. Additionally, half of Gen Z respondents who said they experienced a scam lost money.

With so many affected consumers across generations, banks need to stay vigilant to help protect them. At the 2025 ABA Conference for Community Bankers, a panel of experts shared anecdotes of customers falling prey to bad actors.

“We’re seeing a lot of scams on a daily basis,” said Laurel Sykes, EVP and chief risk officer at American Riviera Bank in California. “We’re still dealing monthly — if not daily — with romance scam victims.”

The panel covered relationship investment scams, whereby criminals take time and build connections with their targets. They target innocent people, often older in age, through texts, dating sites, social media channels, professional networking platforms and/or other apps. Once trust is established, it’s not likely to end well.

“Fraudsters are nimble,” said Robert Mascio, director at the FINRA Investor Education Foundation. “They’re putting in a lot of time and effort to prey on these [victims].”

The Better Business Bureau, whose scam tracker is a free tool anyone can use to report suspected scams, published new research during National Consumer Protection Week in March. Melissa Trumpower Lanning, executive director of the Better Business Bureau Institute for Marketplace Trust, noted that the Bureau doesn’t only share the doom and gloom reality of these crimes; it also distributes uplifting stories of people who have lived through them and want to help others by sharing their experiences.

Phishing and other financial scams cost consumers more than $12.5 billion in 2024 — a 25% uptick from 2023 — according to the Federal Trade Commission.

“The reality is … you’re going to have [people] who are going to be victimized one way or the other,” said Sam Kunjukunju, VP for consumer education at ABA Foundation and moderator of the panel.

Phishing and other financial scams cost consumers more than $12.5 billion in 2024 — a 25% uptick from 2023 — according to the Federal Trade Commission. Banks should tailor messaging to ensure that educational interventions reduce susceptibility to fraud.

As bankers, awareness of red flags is vital. The panel stressed to listen to your intuition, pause and think first before taking an action. Typically, financial fraud falls into one (or more) of four common themes:

  • Unexpected contact
  • Emotional manipulation
  • Sense of urgency
  • Paying in a way that’s difficult to reverse or track

“The most important thing, when it comes to education, is to hit every stakeholder,” said Sykes, adding that banks should tailor messaging to ensure that educational interventions reduce susceptibility to fraud. “The words that we use are so important. When you’re working with your bank staff, make sure that they’re using the right language.”

Scammers not only cause financial loss. They also create a psychological and emotional toll for targeted consumers. Bankers, while focused primarily on rectifying the former, also can help with the latter. The CCB session provided attendees with a dozen banker resources, from the BBB Scam Survival Toolkit and FINRA Foundation to AARP’s Fraud Support Group and the Cybercrime Support Network — plus many more.

Nine in 10 Americans say their bank takes proactive steps to protect them from scams. It’s important for banks to attack the problem from multiple angles.

For example, Sykes said her bank is currently creating a fraud playbook and doing role playing. She suggested developing an escalation process within the bank. Banks also can offer resources like real-time transaction monitoring and customer risk ratings.

As the uphill battle to fight fraud persists, consumer education is essential.

“What works for one group of people doesn’t necessarily work for another group of people,” Mascio said. “This stuff is hard. There’s no simple answer.”

Tags: Financial crimesFinancial educationFraudHuman resources
ShareTweetPin

Author

Khalil Garriott

Khalil Garriott

Khalil Garriott is executive editor of the ABA Banking Journal.

Related Posts

COVID-19 Exposes Threats, Opportunities for the Payments Business

Beyond the swipe: Surfing the waves of change in the debit industry

Payments
April 3, 2026

Consumer preferences, emerging technology and merchant incentives have altered the debit market.

CFPB received 6.6M consumer complaints in 2025

CFPB received 6.6M consumer complaints in 2025

Compliance and Risk
April 2, 2026

The CFPB received more than 6.6 million complaints in 2025, according to the bureau’s annual report. Banks and other financial companies responded to more than 99% of complaints in a timely manner.

Iowa targets crypto ATMs for role in alleged scams

States tighten reins on ‘crypto ATMs’

Compliance and Risk
April 2, 2026

In recent months, multiple states have proposed and passed laws to tighten restrictions on convertible virtual currency kiosks, with Indiana becoming the first state to ban the machines.

Joining forces to improve tax literacy

Joining forces to improve tax literacy

Financial Education
April 2, 2026

By equipping current and future generations with core tax fundamentals, we can collectively help reduce confusion and foster confidence.

Senate fails to reach funding deal on DHS

Congressional leaders announce deal to end DHS shutdown

Compliance and Risk
April 1, 2026

Lawmakers plan to advance a spending bill to fund most of DHS through Sept. 30, except for the agencies involved in immigration enforcement.

FDIC withdraws proposed rules on brokered deposits, corporate governance, executive pay

FDIC releases 2025 figures for consumer protection violations

Compliance and Risk
April 1, 2026

The FDIC cited 1,155 violations of consumer protection statutes and regulations in 2025, representing a decline from the year before, according to the agency’s annual Consumer Compliance Supervisory Highlights report.

NEWSBYTES

ABA DataBank: Average tax refunds are higher in 2026

April 3, 2026

ABA DataBank: March nonfarm payrolls exceeded expectations

April 3, 2026

Report: More than 10,000 veterans have lost homes since VA changes

April 2, 2026

SPONSORED CONTENT

Check Fraud Is Outpacing Legacy Controls. What Banks Should Evaluate Now.

Check Fraud Is Outpacing Legacy Controls. What Banks Should Evaluate Now.

April 1, 2026
How top agricultural lenders are approaching AI, automation and innovation in 2026

How top agricultural lenders are approaching AI, automation and innovation in 2026

March 2, 2026
Top 7 FP&A Trends in Banking for 2026

Top 7 FP&A Trends in Banking for 2026

March 1, 2026
How Instant Payments Can Accelerate B2B Payments Modernization

How Instant Payments Can Accelerate B2B Payments Modernization

February 3, 2026

PODCASTS

Podcast: Are credit union commercial loans risky business?

March 30, 2026

Podcast: Risk and strategy in sponsor banking

March 19, 2026

Podcast: From stablecoin to fraud, top takeaways from the 2026 ABA Summit

March 13, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.