By Kenneth Kelly
ABA Chair Kenneth Kelly is chairman and CEO of First Independence Bank in Detroit.
Americans recognize the critical role that banks play — we have data that consistently shows that consumers understand and appreciate the steps banks take to safeguard their finances.
At ABA, we’re doing our part to support banks in these important efforts, through resources like the ABA Fraud Directory, which provides easy access to contact information to help bankers resolve fraud claims as quickly as possible, or exclusive member access to the Treasury Check Verification System, through which they can validate payee information on government checks.
And we help educate the public through our award-winning #BanksNeverAskThat and #PracticeSafeChecks campaigns, which educate consumers on fraud and scam risks and red flags — and which are available for free to all banks, whether you’re an ABA member or not.
I’m so proud to be part of an industry that is taking steps to tackle this pervasive problem head-on, and I salute my fellow bank leaders on everything that you’re doing to be proactive in this area.
Together, we can send a powerful message to fraudsters and keep our customers safe.
But the reality is that banks alone cannot stop fraud. The size and scale of the crisis we face is far too big for one single industrial sector to tackle effectively. That’s why ABA has led the call for a comprehensive, whole-of-government approach to fighting fraud — and why we need other industries to step up and do their part.
We’ve made that case in recent days, and lawmakers are listening. Earlier this year, ABA welcomed the introduction of the bipartisan SCAM Act — which is being championed in the House by Reps. Lou Correa (D-Calif.) and Dan Meuser (R-N.Y.), and in the Senate by Sens. Ruben Gallego (D-Ariz.) and Bernie Moreno (R-Ohio).
This bill seeks greater accountability from social media platforms, by requiring them to take reasonable steps to remove scam ads from their platforms. Every day, consumers across America fall prey to scam ads on Facebook, Instagram and other social media platforms. Many of these ads are not properly vetted, and too often, social media companies turn a blind eye because they generate revenue that supports their bottom line.
In fact, Reuters reported in November that Meta projected that its 2024 advertisements for scams and banned goods would bring in about $16 billion, or 10% of its total revenue.
It’s time for that to stop.
The SCAM Act is an important step in the right direction that will make Americans safer, and as bankers, we need to do everything we can to ensure that this bill becomes law. Please visit ABA’s grassroots website, SecureAmericanOpportunity.com today and urge your lawmakers to cosponsor the SCAM Act.
