U.S. Rep. Zach Nunn (R-IA) proposed on Aug. 5 a bipartisan bill that would create a coordinated federal task force dedicated to preventing payment fraud.
“Scammers are becoming more sophisticated, and too often, Iowa families — especially seniors — are the ones paying the price,” Rep. Nunn said. “In just the past year, Iowans lost over $52 million to scams ranging from fake investments to romance cons.”
The congressman joined U.S. Rep. Jim Himes (D-CT) to introduce the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act, which has not yet been published in the Congressional Record. The bill is companion legislation to the same-named S. 2019, introduced on June 10 by U.S. Sens. Mike Crapo (R-ID) and Mark Warner (D-VA).
If enacted, the measure would establish a task force led by the U.S. Department of the Treasury and composed of members from the Consumer Financial Protection Bureau, the Federal Communications Commission, the Federal Trade Commission, the U.S. Department of Justice, and other federal agencies, as well as representatives from financial institutions, credit unions, digital payment networks, consumer groups, scam survivor advocates, and the tech sector.
The task force would be required to examine fraud trends, coordinate prevention efforts across agencies, and propose legislative or regulatory solutions, and issue annual reports for three years to guide federal action and improve victim support services, according to a bill summary provided by Rep. Nunn’s office.
“The TRAPS Act brings law enforcement, regulators, and industry together to stop these criminals before they strike and gives victims a better chance at justice,” said the congressman.
The Iowa Bankers Association, AARP, Early Warning Services, the Electronic Transactions Association, the Iowa Credit Unions, the American Bankers Association, the Consumer Bankers Association, the Defense Credit Union Council, and America’s Credit Unions support the bill.
“Congress should be focused on passing legislation that makes a real impact on our constituents,” Rep. Himes said. “Families lose billions of dollars each year to fraudulent schemes, and I hope to see this legislation passed quickly into law so that we can move towards more meaningful protection for our constituents.”