U.S. Capitol
Reps. Zach Nunn (R-Iowa) and Jim Himes (D-Conn.) introduced bipartisan legislation Wednesday to combat a surge in payment scams that have cost Americans billions, especially vulnerable groups like seniors and military families.
The Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act would create a federal task force led by the U.S. Department of the Treasury and composed of agencies including the CFPB, FTC, DOJ and FCC, along with stakeholders from financial institutions, digital payment platforms, and consumer advocacy groups. The group would be tasked with identifying fraud trends, coordinating prevention strategies and issuing annual recommendations.
“Iowans lost over $52 million to scams just last year,” Rep. Nunn said. “The TRAPS Act brings law enforcement, regulators and industry together to stop these criminals before they strike.”
Rep. Himes added, “Families lose billions each year to fraudulent schemes. This bill will streamline federal efforts and help Americans hold onto their hard-earned money.”
The Defense Credit Union Council (DCUC) strongly endorsed the legislation, noting its importance for military communities.
“Payment scams disproportionately affect military members — especially senior veterans and active-duty families,” Anthony Hernandez, DCUC's president/CEO, said. “Credit unions are often the first to detect fraud. The TRAPS Act strengthens our ability to act quickly and collaboratively to protect our members.”
The TRAPS Act has also garnered support from a broad coalition, including AARP, America’s Credit Unions, the Iowa Credit Union League, the American Bankers Association,\ and tech industry players like Early Warning Services.
A Senate companion bill (S. 2019) is led by Sens. Mike Crapo (R-Idaho), Mark Warner (D-Va.), Jerry Moran (R-Kan.) and Raphael Warnock (D-Ga.).
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