U.S. Capitol aerial view
A bipartisan group of senators has introduced legislation to tackle the rising threat of payment scams that cost Americans billions each year, earning strong support from credit union leaders nationwide.
Led by Senators Mike Crapo (R-Idaho) and Mark Warner (D-Va.), the Task Force for Recognizing and Averting Payment Scams (TRAPS) Act would create an interagency task force to analyze vulnerabilities in U.S. payment systems and recommend strategies to prevent fraud. The task force, housed within the Treasury Department, would include representatives from the NCUA, CFPB, FTC, FCC and DOJ, along with financial industry stakeholders, including credit unions.
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Consumer losses due to scams surged to an estimated $12.5 billion last year. Idaho residents alone reported over $63 million in losses.
“Payment scams are an unfortunate reality for many consumers,” Jim Nussle, president/CEO of America’s Credit Unions, said. “Despite credit unions' member education and preventative technologies, scammers continue to try to steal Americans' hard-earned money. The creation of an inter-agency task force focused on identifying effective measures is exactly the kind of commitment needed to stop scammers.”
The bill also called for annual public reporting for three years and emphasized coordination among regulators and private sector leaders. Credit union representation on the task force ensures the cooperative banking sector will have a voice in shaping anti-fraud protections.
“We thank Senator Crapo and the bill’s co-sponsors for their leadership,” Troy Stang, president/CEO of the GoWest Credit Union Association, said. “The TRAPS Act reflects the credit union movement’s deep-rooted priority: Protecting the safety and security of our members and communities.”
America’s Credit Unions engaged with lawmakers in advance of the bill’s introduction to ensure the unique perspective of credit unions would be included. Under the legislation, the NCUA and a credit union representative would play formal roles in the task force’s work.
Supporters said the TRAPS Act offers a proactive, coordinated strategy to stem the tide of scams that threaten household financial stability and the integrity of the U.S. financial system. The bill awaits further committee action.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
