The Consumer Bankers Association (CBA) is encouraging the Consumer Financial Protection Bureau (CFPB) to work with the banks to protect consumers from more prevalent peer-to-peer (P2P) payment platform scams.
CBA President and CEO Lindsey Johnson recently forwarded correspondence to CFPB Director Rohit Chopra, advocating the CFPB collaborate with banks to enhance ongoing fraud prevention efforts.
“For years, banks have been on the front lines fighting fraud and continue to do so in response to sophisticated financial scams across peer-to-peer (P2P) payment platforms,” Johnson wrote. “Banks continue to dedicate incredible resources on an annual basis, including billions of dollars each year, to keep consumers and their money safe.”
Johnson cited banking industry protection initiatives that include investing resources to prevent, detect, and mitigate scams through
education, monitoring, the use of authentication and risk tools; and evolving and adapting consumer protection measures that include real-time safety notifications and alerts to address deceptive activities.
“One of the most meaningful ways the Bureau can immediately partner with the industry to protect consumers from falling victim to these scams is through broader consumer education, which is one of the six ‘primary functions’ of the Bureau – core to its mission – and essential for consumer protection,” Johnson wrote.
Johnson has urged the CFPB to direct unallocated funds in the agency’s Civil Penalty Fund, estimated to have a balance exceeding $2 billion, toward consumer education initiatives focused on financial scam identification and prevention.
“CBA strongly urges the CFPB to direct unallocated funds in the CFPB’s Civil Penalty Fund toward consumer education initiatives focused on financial scam identification and prevention in accordance with Section 1075.107(a) of the Consumer Civil Penalty Rule (the Rule),” Johnson concluded.