WASHINGTON—Two congressional hearings this week explored ways to combat fraud and scams, including the Federal Trade Commission (FTC) authority to take enforcement action, which was recently limited by a Supreme Court ruling (see related story).
The Senate Commerce Committee's hearing was focused primarily on COVID-related fraud and scams, while the House Energy and Commerce Committee's hearing centered on returning funds to consumers who have been scammed.
In the Senate Commerce Subcommittee on Consumer Protection, Product Safety, and Data Security hearing, senators raised concerns about fraud within the Small Business Administration's (SBA) Paycheck Protection Program and medical scams, including fake personal protection equipment as people sought to protect themselves from the coronavirus.
Over the past year, NCUA, Financial Crimes Enforcement Network (FinCEN) and other agencies have flagged COVID-related fraud risks, noted NAFCU. In August 2020, NCUA issued a Risk Alert that included SBA loan fraud and unemployment fraud. FinCEN has also issued alerts on medical scams and unemployment insurance fraud, NAFCU noted.
During the hearing senators discussed ways to strengthen agencies' enforcement measures, provide the FTC with additional resources, and increase their ability to take fraudsters to court.
Legislation Discussed
During the hearing two pieces of legislation were also discussed:
- The SAFE DATA Act, which was introduced last session but has not yet been reintroduced this session. According to proponents, the bill would increase business transparency and hold them accountable for consumers' data while strengthening the FTC's ability to take enforcement action against fraudsters and establishing a fund to provide monetary relief for consumers' privacy violations
- The TRACED Act, which was enacted in 2019 and seeks to combat illegal robocalls.
In the House Energy and Commerce Subcommittee on Consumer Protection and Commerce hearing, lawmakers' discussion focused on legislative efforts to ensure the FTC has enforcement authority to seek monetary relief for consumers or require bad actors to return money earned through illegal activity.