Crapo Leads Legislation to Protect Idahoans from Payment Scams
Washington, D.C.--Citing more than $63 million in reported losses in Idaho to payment scams in 2024, U.S. Senator Mike Crapo (R-Idaho) and U.S. Senator Mark Warner (D-Virginia) introduced the bipartisan Task Force for Recognizing and Averting Payments Scams (TRAPS) Act, which would create a task force to combat the growing issue of payment scams. The Federal Trade Commission (FTC) reported losses to fraud have soared 25 percent over the last year to $12.5 billion nationwide.
U.S. Senators Jerry Moran (R-Kansas) and Raphael Warnock (D-Georgia) are co-sponsors of the legislation.
“Criminals continue to target vulnerable Americans through creative ways to trick them out of their hard-earned money,” said Senator Crapo. “We can--and should--better equip law enforcement and regulators with the tools to go after scammers and prevent scams before they happen."
“The evolving sophistication of financial scams emphasizes the urgent need for unified and proactive defense,” said Senator Warner. “The TRAPS Act will bridge the gap between law enforcement, regulators and the financial industry in order to better protect Americans’ financial welfare and hold those who prey on hard-working individuals accountable.”
“Combatting the global rise in fraud starts with making certain federal regulators and law enforcement agencies are coordinating effectively to address these threats,” said Senator Moran. “Establishing a task force to promote inter-agency cooperation on preventing payment scams and other fraud is yet another step in protecting the financial security of Kansans.”
“Scams and financial schemes continue to debilitate Americans’ pocketbooks and funds, especially our seniors who work hard their entire lives to build savings,” said Senator Reverend Warnock. “The Task Force for Recognizing and Averting Payments Scams (TRAPS) Act better equips law enforcement and regulators to fight back and provide much-needed protection for fraud victims, and helps prevent scams before they happen.”
“Fighting cyber and financial crime is a priority for the Idaho Department of Finance, and Sen. Crapo’s TRAPS Act is an important step for creating strategies to address the growing threat electronic payment scams pose to Idahoans and Americans,” said Idaho Department of Finance Director Patti Perkins.
Payment scams occur when a scammer induces a victim, usually under false pretenses of romance or investments, to voluntarily send them money. Crapo’s legislation would bring together industry, law enforcement, financial regulators and telecommunication regulators to decide best practices for identifying and preventing future scams.
Specifically, the TRAPS Act would:
- Create a task force, chaired by the U.S. Department of the Treasury and composed of the prudential regulators, the Consumer Financial Protection Bureau, the Federal Communications Commission, Federal Trade Commission, U.S. Department of Justice and representatives from industry.
- Direct the task force to examine the payments landscape and compile a report to recommend legislative and regulatory changes, including best practices to coordinate state, local and federal efforts.
- Require the task force to update the report annually for three years.
The TRAPS Act is supported by AARP, Early Warning Services, Electronic Transactions Association, GoWest Credit Union Association, American Bankers Association, Consumer Bankers Association, National Bankers Association, the Defense Credit Union Council and America’s Credit Unions.
"Scams don’t originate on payment platforms, and this legislation is a critical step in protecting consumers and preventing scams by bringing together regulators, law enforcement, industry leaders and consumer advocates to help strengthen our nation’s scam prevention infrastructure,” said Cameron Fowler, CEO, Early Warning Services, the company behind Zelle. “Protecting consumers, small businesses and community financial institutions is essential to preserving trust in our financial system. Early Warning thanks Senators Mike Crapo, Mark Warner, Jerry Moran and Raphael Warnock for their leadership in introducing and sponsoring this proposal. Criminals are constantly evolving how they scam American consumers, small businesses and financial institutions. Combating these criminals demands a united front from government, law enforcement and the private sector.”
“Consumer Bankers Association deeply appreciates Sen. Crapo’s leadership to address the growing fraud and scams crisis. A whole-of-government approach is critically important to make a meaningful difference toward protecting the hardworking Americans we’re all working to serve,” said Consumer Bankers Association President and CEO Lindsey Johnson. "This legislation would convene a comprehensive group of financial regulators along with multiple industry sectors to get the root of the problem and propose solutions.”
“We thank Senator Crapo and the bill’s co-sponsors for their leadership and commitment, not just to credit union members, but to all consumers and the long-term integrity of our financial system,” said Troy Stang, President and CEO, GoWest Credit Union Association. “The TRAPS Act reflects the credit union movement’s deep-rooted priority: protecting the safety and security of our members and communities. This legislation is a smart, holistic approach to identifying and seeking solutions to actively combat and put a stop to the fraud that is eroding the financial security of Americans.”
“Fighting fraud and scams is a priority shared by the payments industry, policymakers and law enforcement,” said Jodie Kelley, CEO, Electronic Transactions Association. “We applaud Sen. Crapo’s TRAPS Act as it brings together the key players needed to help address this common goal.”
Bill text is available here.
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