WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) joined Senators Mike Crapo (R-Idaho), Mark Warner (D-Va.) and Raphael Warnock (D-Ga.) in introducing the bipartisan Task Force for Recognizing and Averting Payment 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.

“Combatting the global rise in fraud starts with making certain federal regulators and law enforcement agencies are coordinating effectively to address these threats,” said Sen. 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.”

“Criminals continue to target vulnerable Americans through creative ways to trick them out of their hard-earned money,” said Sen. 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 Sen. 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.”

“Scams and financial schemes continue to debilitate Americans’ pocketbooks and funds, especially our seniors who work hard their entire lives to build savings,” said Sen. 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.”

Payment scams occur when a scammer induces a victim, usually under false pretenses of romance or investments, to voluntarily send them money. This 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:

1. 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 industry representatives.

2. 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.

3. 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.

Full text of the legislation can be found HERE.

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