Removing Barriers Blog

Letter sent to HFSC Subcommittee prior to hearing on cybercriminals and fraudsters
Posted June 17, 2020 by CUNA Advocacy

Yesterday, CUNA wrote to Chairman Cleaver and Ranking Member Hill of the House Financial Services Subcommittee on National Security, International Development and Monetary Policy prior to their hearing entitled, “Cybercriminals and Fraudsters: How Bad Actors Are Exploiting the Financial System During the COVID-19 Pandemic.” 

We wrote in support of several bills it believes will help financial institutions combat financial scammers.

Internet Fraud Prevention Act - introduced by Rep. Brad Sherman (D-CA)
If enacted, this legislation would require the Federal Reserve, Federal Trade Commission, and FBI to study and report on Business Email Compromise Scams and require the Federal Financial Institutions Examination Council to include Business Email Compromise Scams in its Bank Secrecy Act and Anti-Money Laundering (BSA/AML) exam procedures.

Another CUNA-supported bill, introduced by Rep. Tulsi Gabbard (D-HI), would require Federal Regulators, including NCUA, to issue guidance encouraging financial institutions to educate their members and customers at the signs of money mule scams.

The letter also reiterated principles that should be followed for any federal data security legislation:

  • Any new privacy law should include both data privacy and data security standards;
  • The new law should cover all business, institutions and organizations;
  • Any new law should preempt state requirements to simplify compliance and create equal expectation and protection for all consumers. 
  • Breach disclosure and consumer notification are important, but these requirements alone won’t enhance security or privacy:
  • Hold entities that jeopardize consumer privacy and security accountable through private right of action and regulatory enforcement:   
  • Recognize this issue for what it is--a national security issue.