Tuesday, November 5, 2024
Ranking Member Tim Scott (R-SC) of U.S. Senate Committee on Banking, Housing, and Urban Affairs. | https://www.banking.senate.gov/about/ranking-member

Senator Tim Scott emphasizes education in fight against consumer fraud

At a U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing focused on consumer fraud and scams, Ranking Member Tim Scott (R-S.C.) commended law enforcement for their relentless efforts to combat financial crime and protect Americans nationwide. Scott also recognized the contributions of state financial regulators and financial institutions in educating consumers about various scams.

Scott expressed gratitude to Carri Grube Lybarker, Administrator of the South Carolina Department of Consumer Affairs, for her testimony and insights on enhancing technology, education, and other methods to prevent these crimes.

In his opening remarks, Scott stated: "Thank you, Mr. Chairman. Thank you for being here today – all the witnesses. First and foremost, I want to start today by thanking our law enforcement partners at the state and federal level."

He emphasized the importance of recognizing frauds and scams as crimes that should be punished accordingly: "Every day, our law enforcement members work tirelessly to combat crime — including financial crime – and to protect and defend victims in every community around the country."

Scott acknowledged regulators at both state and federal levels along with financial institutions for their efforts in preventing criminal activities: "This includes their critical work educating consumers on the warning signs of popular frauds and scams."

Highlighting the need for consumer education as a primary defense against fraud, Scott said: "The first step to stopping fraud is ensuring people are equipped with the tools to recognize the very fraud that so many of us fall victim to."

He noted that criminals often target vulnerable populations such as seniors: "Unfortunately, it seems almost daily that I hear a horrible story of hardworking Americans who worked their entire lives forced to come out of retirement after having their savings wiped out by scams."

Reflecting on his tenure as Ranking Member of the Aging Committee, Scott discussed his initiatives aimed at raising awareness about these crimes through hearings focused on fraud types and an annual “Fraud Book.”

Scott expressed optimism about learning new solutions from expert testimonies: "Today, I look forward to hearing from the panel of witnesses in front of us today so that we can understand new and emerging solutions to this epidemic."

He stressed collaboration across sectors rather than assigning blame: "We need all hands on deck to solve the problem that we face today and help protect more Americans from challenges once their savings are gone."

Scott underscored education's role in combating financial crime: "If we can help more Americans access financial education, we can help them have tools both to protect themselves as well as achieve financial freedom."

Praising Lybarker’s approach known as “ditch the pitch,” he highlighted its effectiveness in quickly detecting scams.

Concluding his remarks with appreciation for ongoing efforts against financial crime, Scott said: "I am grateful for the work our law enforcement, our regulators, and our financial institutions – what they’re doing together to combat and prevent financial crime."

The hearing sought additional ideas on improving technology and educational approaches while avoiding incentives for new criminal acts.

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