The Consumer Financial Protection Bureau (CFPB) earlier this year released a compelling report that highlighted an unsettling increase in reported incidents of identity theft among servicemembers. According to data cited from the Federal Trade Commission (FTC), in 2021 alone there have been close to 50,000 cases of identity theft involving military consumers. This group not only includes servicemembers but also extends to veterans and their respective family members. Interestingly, the CFPB is now looking towards creditors to help servicemembers utilize their SCRA benefits more effectively.
This issue was first brought to light with the FTC’s 2020 report, which drew alarming statistics on identity theft hitting the military community. While we may surmise several reasons for the rise in this form of financial crime, it has prompted financial institutions and law enforcers to place particular importance on finding ways to secure the financial stability of servicemembers.
In response to this growing threat, the CFPB believes that creditors could play a role in helping servicemembers be protected. The agency seems to view creditors as potential safeguards, likely due to their direct relationship with consumers and the ability to monitor unusual activity.
This move underlines the agency’s drive to leverage every possible resource to mitigate the financial threats faced by our military community. In an industry largely defined by its adherence to rules and regulations, it’s refreshing to see a regulatory agency giving credence to a possibly overlooked sector in their fight against identity theft.
For more in-depth information, the complete CFPB report provides a detailed analysis. As financial professionals and legal advisors continue to tackle this issue, it will be interesting to observe how this strategy will further evolve and adapt to the changing landscape of financial crime.