Senators introduce bipartisan bill to create payment scam task force

With a focus on fighting fraud, a bipartisan, lawmakers introduced a credit union-supported bill Tuesday to establish a task force to combat payment scams. Sens. Mike Crapo, R-Idaho, and Mark Warner, D-Va., introduced the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act (S. 2019). 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.

America’s Credit Unions engaged the senators on the legislation to ensure credit unions’ perspective is accounted for on the task force.

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.

“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.

“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.”

Ensuring credit unions and consumers are protected from increasing fraud and scams, America’s Credit Unions launched a task force with member credit unions and partners to explore ways to advocate a better anti-fraud environment and substantive policy changes.