Washington, DC — Representatives Jim Himes (CT-04) and Zach Nunn (IA-03) today introduced the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act, bipartisan legislation to protect Americans, especially seniors, from payment fraud by creating a coordinated federal task force dedicated to preventing scams.
“Congress should be focused on passing legislation that makes a real impact on our constituents. That’s why I’m proud to join Congressman Nunn in introducing the TRAPS Act, which will save Americans money by streamlining federal efforts to prevent payment scams,” said Rep. Himes. “Families lose billions of dollars each year to fraudulent schemes, and I hope to see this legislation passed quickly into law so that we can move towards more meaningful protection for our constituents.”
“Scammers are becoming more sophisticated, and too often, Iowa families—especially seniors—are the ones paying the price,” said Rep. Nunn. “In just the past year, Iowans lost over $52 million to scams ranging from fake investments to romance cons. The TRAPS Act brings law enforcement, regulators, and industry together to stop these criminals before they strike and gives victims a better chance at justice.”
“AARP, which advocates for the more than 100 million older Americans age 50 and older, is pleased to endorse the Taskforce for Recognizing and Averting Payment Scams Act, or TRAPS Act,” said AARP Government Affairs Director Clark Flynt-Barr. “This bipartisan legislation represents a crucial step towards safeguarding older Americans in the rapidly evolving landscape of digital payments and financial services.”
The TRAPS Act addresses this growing threat by:
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- Establishing a task force led by the U.S. Department of the Treasury and composed of members from the Consumer Financial Protection Bureau, Federal Communications Commission, Federal Trade Commission, Department of Justice, and other federal agencies
- Including representatives from financial institutions, credit unions, digital payment networks, consumer groups, scam survivor advocates, and the tech sector
- Requiring the task force to examine fraud trends, coordinate prevention efforts across agencies, and propose legislative or regulatory solutions
- Issuing annual reports for three years to guide federal action and improve victim support services
In addition to AARP, the bill is endorsed by Early Warning Services, the Electronic Transactions Association, American Bankers Association, Consumer Bankers Association, the Defense Credit Union Council, and America’s Credit Unions.
The TRAPS Act is led in the Senate by Senators Mike Crapo (R-ID), Mark Warner (D-VA), Jerry Moran (R-KS), and Raphael Warnock (D-GA), who introduced companion legislation, S. 2019.
Text of the bill can be found here.