[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99,111],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6463720,"mediaKeyId","5785120-6ac5493d9140e0d15f57b384635f21d9","parentId",5785120,"title","Committee hears concerns about crypto, DeFi and Bitcoin ATMs as scam cash‑out channels","audioSeconds",4661,"startMs",3725000,"endMs",8386000,"viewUrl","/Search/View?dp=1&key=5785120-6ac5493d9140e0d15f57b384635f21d9&start=3725&end=8386","thumbnailUrl","https://assets.pipeline.soar.com/5785120-6ac5493d9140e0d15f57b384635f21d9/thumbnail_3725000.jpg","articleUrl","/articles/6463720/Committee-hears-concerns-about-crypto-DeFi-and-Bitcoin-ATMs-as-scam-cashout-channels","mediaUrl","https://secure.pipeline.soar.com/6463720-df1c88983bfbb1c68b5932194dbd4110/orig.mp4?Expires=1770403598&Signature=hfVMCk2ZOcFeNX8eH6uNZG5Gyf7sK8q3~RaBFK4ruMeU4pqbGVWJNQ2vDonvr2W5ums~Ny7JBoVAzq-kH0LSh74WqgGBt~VweWTJSvXDiNn2JJ1w8tJh2uP8T4eZyKcBXCWHlPpP7ZUYDCxmzBfZNYu2ExkpqGpRb-pQicZMDA~ElpRZ2KE3YdlrlhqiYKSoFOxMeA78iGdeXW7UGiQ-CfrfulkzTJLEcf9HxX6WY6AUMg-YMYbAexqTy~KjmINlcSNIZiMhdW8~nbYPbAPcFAlbXMWEhS~WMqy~GwlUclJp1xZWO6b29Xvagn0fj-xmnJMqh9z-WQBAOo7Dz2lyWw__&Key-Pair-Id=KUT5TJCACFTXG","author","U.S. House Committee on Financial Services","date","2025-09-19T04:22:46Z","article","Members of the House subcommittee and witnesses discussed how cryptocurrency and decentralized finance (DeFi) can be used by fraudsters to receive and launder stolen funds, and they urged stronger oversight and law‑enforcement tools.

Representative David Liccardo and others questioned how to address scams facilitated by unhosted wallets and DeFi protocols that make identification and recovery difficult. Carla Sanchez Adams recommended extending legal protections and supervisory reach so that payment rails used in crypto are subject to consumer protections, including updating EFTA coverage to apply to such transfers and to fraudulently induced transactions.

Witnesses also flagged Bitcoin ATMs as a common cash‑out method for scams targeting seniors. Paul Benda cited a Washington, D.C. enforcement action where a Bitcoin operator’s ATM transactions were 93% fraudulent, with an average victim age of 71 and average loss of about $8,000 per incident. Kate Griffin urged parity in law‑enforcement authorities for digital assets, including civil forfeiture and clarified Secret Service authorities, and recommended investigating crypto ATMs placed in vulnerable settings such as convenience stores and retirement facilities.

Panelists discussed the House Clarity Act (described in testimony as clarifying KYC/AML for centralized exchanges) as helpful for centralized operators but noted DeFi and unhosted wallets present additional cross‑border enforcement and identification challenges. Witnesses and members asked for follow‑up on legislative fixes and for consumer education to highlight the risks of sending crypto.","mediaType","Video","parentTitle","Fraud in Focus: Exposing Financial Threats to American Families (EventID=118624)","oneSentenceSummary","Members and witnesses discussed the role of cryptocurrency, unhosted wallets and Bitcoin ATMs in enabling fraud and called for clearer regulation, parity of law‑enforcement powers and consumer education on crypto risks.","taxTitle","Financial Services: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal","taxId",1981,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6463724,"Witnesses: AI accelerates fraud but also helps detect deepfakes and scale defenses",4615,2465000,7080000,"/Search/View?dp=1&key=5785120-6ac5493d9140e0d15f57b384635f21d9&start=2465&end=7080","https://assets.pipeline.soar.com/5785120-6ac5493d9140e0d15f57b384635f21d9/thumbnail_2465000.jpg","/articles/6463724/Witnesses-AI-accelerates-fraud-but-also-helps-detect-deepfakes-and-scale-defenses","https://secure.pipeline.soar.com/6463724-fd04a3fbf0df9bb37544a96b01a05548/orig.mp4?Expires=1770403598&Signature=Q6fcQXeSvmOOdvbNB6Uvq8VcfdjWodWQwHnpL1whWr1NbOSo6BvASjWetkSWGvrXu3~NSKcj4smK4SpNkFkAVexOfEBwMa3R-mEtWyTat6JgBIzkybnVxG6NJVl3tkcz8Fat8RztPPXPk4VlBwr8JYjaD-DxTj4NT7yhdVyZbXGiZsUNiz3bGBy6lWlTCXSym09bK8UypUme4vAwVJqlTb~Vf89x-F6QL0NXBqBB-SgKN2c~5WJnDKbgdMmoMCsWkxBUMD0Nhhcp893fac94t-Lj2VUy3UeMQK1b-L9omXORBpP4utOTnBjMws1IGq~L~7PnG9jqPpms5Q9iHuBj8A__&Key-Pair-Id=KUT5TJCACFTXG","Witnesses told the House subcommittee that artificial intelligence (AI) has become a central factor in recent growth of fraud but can also be used to detect and stop scams.

Ian Bednowitz of LifeLock testified that breaches and AI are primary drivers of recent fraud increases. He said the number of Social Security numbers exposed on the dark web rose sharply and that AI is enabling criminals to “industrialize fraud,” creating convincing phishing messages, voice clones and deepfakes. He told the committee that seniors experienced particularly large average losses and that “in the hands of criminal organizations, artificial intelligence is allowing them to industrialize fraud.”

Paul Benda and other witnesses described AI as a “double‑edged sword.” Benda said banks and security firms use AI to scan millions of data points to detect fraud in real time, detect deepfakes and block fraudulent communications. Kate Griffin said law enforcement and governments must also have access to tools and training to use AI to query databases and build cases at scale.

Policy recommendations included: invest in public‑private AI tools for detection and takedown, modernize breach notifications so law enforcement and firms can act, fund training for local law enforcement to use AI tools, and encourage financial institutions and platforms to deploy defensive AI products that scale to meet automated attacks.

No regulation was adopted at the hearing; committee members asked witnesses for technical follow‑up and examples of AI‑driven defensive tools.","Testimony at the House subcommittee hearing emphasized that artificial intelligence has multiplied scammers' capabilities — producing convincing phishing, voice cloning and deepfakes — while firms are deploying AI tools to detect fraud in real time and protect consumers.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6463727,"Committee hears calls to force telecoms and platforms to block spoofing, speed fraud ad takedowns",3261,2175000,5436000,"/Search/View?dp=1&key=5785120-6ac5493d9140e0d15f57b384635f21d9&start=2175&end=5436","https://assets.pipeline.soar.com/5785120-6ac5493d9140e0d15f57b384635f21d9/thumbnail_2175000.jpg","/articles/6463727/Committee-hears-calls-to-force-telecoms-and-platforms-to-block-spoofing-speed-fraud-ad-takedowns","https://secure.pipeline.soar.com/6463727-8ac049c6cf8b6a000ade2c92529afdcc/orig.mp4?Expires=1770403598&Signature=YY97g~JsD3x0tr1KAaAzWR5fUkRjh70zr-l1SYvMsGRDaFnubcWOZbvG7p8FUsTYm397REniRJVI0-isHFaMsk9OleCRltvk95xnouWIZ4HG2U9OUXqioDcSxLXqVj8sCGMvCXpdtEmiu9AGXw4-~0FA8eMaYJFOn8HRPdejxl3MVqoTqXPFiOnsOhHmSMDGBiSQT07oanI3AeXDTJWTk6DeAGs4WLOideYln6trHGks3ZcaH2RGH3~eQvZJVcV-s6JWCZ2Yn0j3Jf7HzIXgSiVd7YacJxXKoR8cjHNSgyntUfC1kBWea7lmrc2b~IQtRdaKLNyEY-628mYlLSDdcw__&Key-Pair-Id=KUT5TJCACFTXG","Witnesses at the subcommittee hearing urged stronger obligations for telecom carriers and social‑media platforms to stop scam distribution channels that enable fraud.

Paul Benda of the American Bankers Association told the committee telecoms must “stop criminals from impersonating banks through spoof phone calls and fraudulent texts,” and called for closing loopholes that allow SIM‑box operations that send thousands of scam texts. He said caller ID spoofing makes it easier for criminals to appear to call from a legitimate bank and that telecoms currently lack sufficient incentives to block that traffic.

Witnesses also criticized the speed and consistency of ad takedowns on platforms. Benda cited a Wall Street Journal report and said takedown processes can require many repeat reports before removal. He praised Google’s pilot “priority flagger” program as effective and recommended broader adoption or mandate for platform takedown programs. Ian Bednowitz said platforms’ privacy controls and public data practices increase criminals’ ability to profile victims.

Recommendations included: requiring telecom accountability (FCC action or statute), banning SIM‑box abuse, establishing a searchable spam text and messaging database under FCC, providing legal safe harbors for good‑faith information sharing and takedowns, and mandating quick, free takedown of impersonation accounts with potential liabilities for platforms that knowingly allow impersonation to persist.

Committee members noted jurisdictional limits across committees and agencies (FCC, FTC) but stressed that telecoms and platforms are central to prevention. No new rulemaking was adopted at the hearing; members and witnesses asked for follow‑up documentation and legislative options.","Banking and consumer witnesses urged Congress and regulators to require telecom companies and social platforms to stop spoof calls and remove fraudulent ads quickly, and to create searchable spam text and messaging databases.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6463732,"Witnesses and members criticize CFPB staffing changes and dropped enforcement actions",435,4320000,4755000,"/Search/View?dp=1&key=5785120-6ac5493d9140e0d15f57b384635f21d9&start=4320&end=4755","https://assets.pipeline.soar.com/5785120-6ac5493d9140e0d15f57b384635f21d9/thumbnail_4320000.jpg","/articles/6463732/Witnesses-and-members-criticize-CFPB-staffing-changes-and-dropped-enforcement-actions","https://secure.pipeline.soar.com/6463732-b61651a58e11eb23740cc625ff385437/orig.mp4?Expires=1770403598&Signature=jMogV2w25th56RgkHx7ANgehHfLaz~g3F~8C1HOS3YGdMs0Ot2rD2~5OjUp7xN8xJ8R81EM~daD0XfKm5NYnI2wL0P7EVAs1cKM4s-WmY6-WldNL6ud2AHfgD2ZldtTJecOmaTD1WzRYLj4BXxfF~k91IcJqAwBT1el910MamIVIZiAfJgVmpcoA2B7piR3RmZyOi4ArbqTO007mPoqBLqeJ0kebktx3zlBj-ar9jih53mBiNvJXdBq8Gvgs1DxWqSbT96HGDmhvuV~EVleXe4rU-V0iV9GiLSthPQTZxkUnLKNDtg9m84q9mh2nHU5uVACpwc7XKUQpsJ3CciUHVA__&Key-Pair-Id=KUT5TJCACFTXG","Members of the House subcommittee and consumer advocates criticized recent changes at the Consumer Financial Protection Bureau (CFPB), saying staffing reductions and dropped enforcement actions have reduced protections for fraud victims.

Carla Sanchez Adams, senior attorney at the National Consumer Law Center, described payment fraud as a “national crisis” and said legal protections vary by payment method. She told the committee that unauthorized transactions are covered by the Electronic Fund Transfer Act (EFTA), but that EFTA does not clearly protect many newer payment methods and fraudulently induced transfers. Sanchez Adams urged Congress to modernize EFTA to cover fraudulently induced transfers, noting the UK’s reimbursement approach as an example.

Ranking Member Greene and other Democratic members sharply criticized the current CFPB leadership and cited recent dropped enforcement actions. Rep. Maxine Waters said the bureau under its current leadership “dropped a lawsuit” involving Zelle and another involving Cash App, leaving state attorneys general to pursue those cases. Sanchez Adams confirmed that some suits were picked up at the state level and that redress ordered in prior consent decrees has not been fully distributed to consumers.

Witnesses and members discussed private remedies, including the EFTA’s private rights of action and industry remediation programs, but several witnesses warned that many victims cannot afford private litigation and rely on agencies for enforcement. Kate Griffin said victim reporting is concentrated to financial institutions rather than law enforcement, and Paul Benda and others called for improved agency coordination and continued supervision of emerging payment products.

No formal policy change was adopted at the hearing; members asked for follow‑up written responses and said they would consider legislative fixes to restore or clarify consumer protections.","Consumer advocates and several members said cuts and leadership changes at the Consumer Financial Protection Bureau have weakened enforcement of consumer protections in fraud cases, citing dropped actions against payment apps and continued consumer losses.",{"_33":112,"_35":36,"_37":38,"_39":113,"_41":114,"_43":115,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6463735,"House subcommittee hearing highlights surge in fraud, calls for national anti‑scam strategy",7642,1349000,8991000,"/Search/View?dp=1&key=5785120-6ac5493d9140e0d15f57b384635f21d9&start=1349&end=8991","https://assets.pipeline.soar.com/5785120-6ac5493d9140e0d15f57b384635f21d9/thumbnail_1349000.jpg","/articles/6463735/House-subcommittee-hearing-highlights-surge-in-fraud-calls-for-national-antiscam-strategy","https://secure.pipeline.soar.com/6463735-f8c5f56ed3470d8b26bd47d6d20aa0fc/orig.mp4?Expires=1770403598&Signature=KAvSlf1H~dAQ6YpcGI~qSHkid1A7~6HDIlpNwT3HRIHQ2Pl02thdNQh-LHvA2L7HM2dIy7vd~rwNRN3OS2O8B0JsqRcmhFm6vGmBVVp58yErZFvAKONPUnR~gXHvNXv9GMkxOpPwEbyP7aIdy2KkIwiBNSP~ronoJFkFd7h1SHPa4R9XnYDbsxyjmQg2g5FTxzMk3fguR9snYueiZrC3jue6~thRDZSzW2wNKIPKjCp7uUIDotbal~Qns3iujEMRBkV~KYYz40wK68AgOqKz~F5pHPyZiObzX5MiqiX1fth3ciNufLofW8tcZLHL9ZwExzWYHtto4FRlwwEZFRlDwg__&Key-Pair-Id=KUT5TJCACFTXG","The House Financial Services Subcommittee on Oversight and Investigations convened a hearing titled “Fraud and Focus: Exposing Financial Threats to American Families,” opening with committee members and witnesses warning of sharply rising fraud losses and urging a coordinated national response.

Chairman Muser said the hearing’s purpose was “to better understand the various types of financial fraud that exist, including the meteoric rise in check fraud and senior scams.” He and other members cited federal statistics and industry figures showing large year‑over‑year increases in reported losses. Paul Benda, executive vice president for risk, fraud and cybersecurity at the American Bankers Association, told the subcommittee that criminals have “reinvested the $300,000,000,000 stolen during the pandemic” and now operate organized networks using deepfakes, spoofed caller IDs, stolen checks and fake social media accounts.

Witnesses and members described fraud as an ecosystem problem that spans telecoms, social platforms, retail, payments, fintech and cross‑border criminal networks. The hearing repeatedly stressed three priorities: prevent scams before money moves, improve law‑enforcement capacity and coordination, and strengthen consumer protections and reimbursement pathways. Ian Bednowitz, general manager of LifeLock, said AI both accelerates scams and is “also our best defense” when deployed by firms to detect fraud in real time.

Specific proposals discussed included creating a White House Office of Fraud and Scam Prevention to coordinate federal efforts and unify reporting, improving information sharing through safe harbors for banks and regulators, and requiring telecoms and messaging providers to close loopholes that allow spoofing and bulk scam texts. Benda urged “telecommunication accountability” and mandated faster takedowns of fraudulent social‑media ads. Kate Griffin of the Aspen Institute’s National Task Force on Fraud and Scam Prevention described a forthcoming task force report that will recommend a national strategy and private‑sector standards.

Committee members and witnesses also raised process gaps: inconsistent reporting channels across federal agencies, uneven takedown practices by platforms, limited resources for state and local law enforcement and the need for better data collection to measure true losses. Several members urged bipartisan legislative packages pending in the House — including the TRAPS Act and the Guards Act — as elements of a broader federal approach.

The hearing concluded without committee votes. Members requested written responses and underscored plans for further hearings and legislative work.

Taper: Members said follow‑up will focus on implementing recommendations discussed at the hearing, with staff and witnesses asked to provide additional written material to the committee record.","A House Financial Services subcommittee hearing centered on rising fraud and scams, with witnesses and members urging a coordinated federal response, improved information sharing, and private‑sector accountability for telecoms, platforms and payment providers.","actionData","errors"]

Article not found

Committee hears concerns about crypto, DeFi and Bitcoin ATMs as scam cash‑out channels

Witnesses: AI accelerates fraud but also helps detect deepfakes and scale defenses

Committee hears calls to force telecoms and platforms to block spoofing, speed fraud ad takedowns

Witnesses and members criticize CFPB staffing changes and dropped enforcement actions

House subcommittee hearing highlights surge in fraud, calls for national anti‑scam strategy