The Senate passed by unanimous consent an ICBA-supported bill to help prevent romance scams.
Legislation Details: The Romance Scam Prevention Act (H.R. 2481), introduced by Rep. David Valadao (R-Calif.):
- Would require online dating apps and websites to provide users with a fraud ban notification if the user has received a message through the service from a banned user of the service.
- Provides for enforcement by the Federal Trade Commission and state attorneys general.
- Was passed by the House of Representatives in June.
Recent Sanctions:
- The Treasury Department in April sanctioned a network of Cambodian individuals and entities that have stolen millions of dollars from U.S. citizens using romance scams.
- Treasury and the Justice Department last year announced actions against criminal networks responsible for scams and money laundering, including an ICBA-supported final rule targeting the Cambodia-based Huione Group.
ICBA Advocacy:
- ICBA strongly supported FinCEN’s proposed rule to designate the Huione Group as a primary money laundering concern but said more needs to be done to curtail the rapid growth of crypto scams.
- In a statement for a congressional hearing on crypto-based romance confidence scams in 2024, ICBA said the persistent growth of such scams emphasizes the urgent need for policymakers to prioritize national security, counter illicit finance uses of cryptocurrency, and improve information sharing with community banks.
- ICBA also supported FinCEN’s effort in 2023 to classify transactions involving crypto mixers as a primary money laundering concern and subject them to additional reporting.
ICBA Resources: ICBA blog posts spotlight the growth of these scams and the need for a policy response. Resources to help community bankers fight fraud and scams are available on ICBA’s website.