The Consumer Federation of America’s Director of Financial Services, Adam Rust, submitted the following testimony before the U.S. House Committee on Financial Services, Subcommittee on Financial Institutions, for a hearing titled “Fighting Fraud on the Front Lines: Challenges and Opportunities for Financial Institutions.” The testimony addresses the rapid rise of financial fraud and scams and the growing risks facing American consumers and the financial system.

The testimony highlights that financial fraud and scams represent one of the fastest growing threats to consumers, with reported losses reaching $12.5 billion, though it emphasize that the true cost is likely much larger, as many victims never report their losses. The testimony also discuss the important role of the Consumer Financial Protection Bureau in protecting scam victims and warning that recent attacks on the agency have weakened oversight, and made consumers more vulnerable to scams.

The testimony urges Congress to take meaningful action to address the growing issue of scams and strengthen legislative protections for consumers.