Why the U.S. Requires New Strategies to Combat Scams

In contrast to the collaborative efforts seen in the UK and Australia to combat payment scams, the United States grapples with unique challenges. According to Trace Fooshee, a strategic advisor at Datos Insights, replicating existing regulatory frameworks is impractical. However, focused measures, such as imposing regulations on ad platforms that attract scams and establishing a centralized fraud-fighting agency, could be effective.

The UK model, where Google is mandated to maintain a vetted list of financial firms eligible for advertising, serves as a notable example. This strategy has proven successful in curbing fraudulent advertising and could be potentially adapted for implementation in the US without requiring a complete overhaul of its ad ecosystem.

“Implementing a similar initiative in the U.S. market is certainly feasible. This is one avenue through which we can galvanize segments of the fraud ecosystem that have largely remained unregulated,” Fooshee remarked.

Fooshee emphasized the need for a centralized authority within the U.S. payments sector to spearhead anti-fraud initiatives. Existing federal bodies are not equipped for such a role, necessitating new legislation from Congress to establish a dedicated agency focused on combating fraud.

During a recent interview with Information Security Media Group, Fooshee provided insights about multiple facets of the fraud landscape. He discussed how the UK’s advertising policies have reduced scam activity and explored the justification for a new federal entity to unify anti-fraud efforts. Additionally, he addressed how the ambiguity surrounding data-sharing laws undermines defenses against fraud.

With extensive experience in financial services, Fooshee advises institutions on digital fraud strategies, risk management, and regulatory policy, contributing significantly to the discourse on enhancing security within the financial sector.