WASHINGTON – The Protecting Consumers from Payment Scams Act has been introduced in Congress. Designed to protect consumers from fraud impacting payment apps and bank accounts,” the proposed bill has won the endorsement of a number of consumer groups.
Introduced in the Senate by Sen. Richard Blumenthal (D-CT) and Sen. Elizabeth Warren (D-MA), and in the House by Rep. Maxine Waters (R-CA), the bill would update the Electronic Fund Transfer Act (EFTA) and seeks to protect consumers when they are “defrauded into initiating a payment sent to a bad actor, when they lose funds through fraudulent bank wire transfers, and when their accounts are inexplicably frozen or closed,” according to a statement from the co-sponsors.
Blumenthal specifically cited Zelle-related fraud in a statement accompanying introduction of the bill.
The three members of Congress said 49 consumer advocates, experts and other stakeholders have endorsed the bill.
More than $10 Billion in Fraud Reported
The co-sponsors cited data from the FTC showing it has received 2.6 million fraud complaints in 2023 totaling $10 billion in reported losses, though “fraud is vastly underreported.”