WASHINGTON--Two senators have introduced a bill to establish a task force to combat payment scams, America's Credit Unions reported.
Sens. Mike Crapo (R-ID) and Mark Warner (D-VA) have introduced the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act.
The bill would direct the Treasury to establish a task force to examine current trends and developments in payment scams, identify effective methods for preventing such scams, and issue recommendations to enhance efforts to identify and prevent such activities, ACU said.
"America’s Credit Unions engaged the senators on the legislation to ensure credit unions’ perspective is accounted for on the task force," ACU said.
The task force – composed of representatives from the NCUA, CFPB, Federal Trade Commission, Department of Justice, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve, Federal Deposit Insurance Corporation, and Financial Crimes Enforcement Network – would also include a representative from a credit union with expertise in identifying, preventing and combating payment scams, ACU explained.
“Payment scams are an unfortunate reality for many consumers, and despite credit unions' member education and preventative technologies, scammers continue to try to steal Americans' hard-earned money. America’s Credit Unions supports Senators Crapo and Warner’s Task Force for Recognizing and Averting Payment Scams (TRAPS) Act,” said Jim Nussle, America’s Credit Unions president/CEO. “The creation of an inter-agency task force focused on identifying effective measures to prevent payment scams is exactly the kind of commitment needed to stop scammers. We are extremely grateful for the inclusion of credit union representatives, from the NCUA and industry, on this task force who will advise and provide the credit union perspective to help keep consumers' money safe.”
Both the GoWest Credit Union Association and The League of Credit Unions also worked closely with Crapo and Warner over the last few months on the TRAPS Act, ACU said.
“GoWest was proud to work with Senator Crapo’s office to support and refine this important legislation in preserving the integrity of our financial system,” said Troy Stang, president and CEO of GoWest Credit Union Association. “Fraud is one of the most detrimental issues facing both consumers and financial institutions. This legislation is a smart, timely investment in finding solutions to prevent fraud before it happens.”
“The TRAPS Act recognizes that the fight against financial crime requires the combined expertise of the entire financial ecosystem—law enforcement, regulators, frontline institutions like credit unions, and the consumers we serve,” said the league’s Vice President of Advocacy and Strategy Grace Colvin. “This is not just about stopping the next scam; it’s about building a resilient, intelligence-driven infrastructure that protects Americans now and into the future. By fostering collaboration between key stakeholders, this bill will help develop best practices and recommendations, as well as empower law enforcement, in the continued fight against fraud.”
ACU said it has launched a task force with member credit unions and partners to explore ways to advocate a better anti-fraud environment and substantive policy changes.
Scams Targeting Military Families On The Rise
The Defense Credit Union Council applauded the legislation.
"As the voice for defense credit unions serving our nation’s military and veterans, we were proud to work with our partners in the lead-up to this legislation’s introduction. Payment scams targeting military families are on the rise, and credit unions are often the first line of defense," said DCUC Chief Advocacy Officer Jason Stverak. "This bill gives credit unions the tools they need to detect, stop, and report fraudulent transactions before the damage is done—empowering financial institutions to pause suspect payments and better coordinate with law enforcement. DCUC strongly supports the TRAPS Act and looks forward to working with Congress to advance this commonsense legislation that protects consumers, especially those who serve and sacrifice for our country.”