Campaign for combating internet fraudsters: Long overdue action necessary
The TRAPS Act: A United Front Against Digital Payment Scams
The Task Force for Recognizing and Averting Payment Scams Act (TRAPS Act) is a bipartisan bill that aims to establish a multi-agency task force to combat the growing issue of digital payment scams. Sponsored by senators Raphael Warnock, Mike Crapo, Jerry Moran, and Mark Warner, the TRAPS Act seeks to protect Americans, particularly seniors, and restore trust in the nation's marketplaces.
The proposed task force will be led by the U.S. Department of the Treasury, with participation from agencies such as the Consumer Financial Protection Bureau (CFPB), Federal Communications Commission (FCC), Federal Trade Commission (FTC), Department of Justice (DOJ), Financial Crimes Enforcement Network (FinCEN), and other federal agencies. Additionally, representatives from financial institutions, credit unions, digital payment networks, consumer groups, scam survivor advocates, and the technology sector will also be part of the task force.
The task force's mandate includes examining current fraud trends, such as spoofed calls, text message scams, and scams using bank accounts and gift cards. They will identify effective prevention methods and coordinate prevention and enforcement efforts across federal, state, and local law enforcement agencies to improve scam detection and prosecution.
In the past year, New Yorkers reported approximately 280,000 cases of fraud and scams to the Federal Trade Commission, with the amount stolen through payment scams increasing by 25%. These scams often target seniors, with scammers pretending to be family members in distress, asking for money. In some cases, scammers use artificial intelligence to mimic a loved one's voice.
The TRAPS Act has garnered support from a broad range of senators and interest groups, reflecting the urgent need to address the growing problem of payment scams. The bill is compared to an "Avengers" team of fraud prosecution experts, aiming to create a cohesive and proactive federal response rather than fragmented efforts.
The TRAPS Act is supported by groups representing victims, like the AARP, and groups representing business, like the American Bankers Association. It is a response to the increasing prevalence of digital payment scams, which were only just becoming a problem a decade ago when the speaker was prosecuting consumer fraud at the New York Attorney General's Office.
By uniting law enforcement, regulators, industry, and consumer advocates, the TRAPS Act seeks to reduce losses and enhance justice for victims of digital payment scams. It will investigate scammers, recommend new legislation and regulations, and promote stronger coordination of federal, state, and local law enforcement. The task force will also issue annual reports for three years to guide federal action, enhance victim support services, and recommend legislative or regulatory changes. Furthermore, the bill supports public education initiatives to inform and arm the public against digital payment scams.
[1] The Hill [2] AARP [3] American Bankers Association [4] Consumer Reports [5] FTC
- The TRAPS Act, a bipartisan bill, has garnered support from various groups, including [The Hill], [AARP], and [American Bankers Association], reflecting the urgent need for general-news and personal-finance sectors to combat the increasing prevalence of digital payment scams.
- In the effort to reduce losses and enhance justice for victims of digital payment scams, the TRAPS Act aims to coordinate prevention and enforcement efforts across federal agencies, financial institutions, digital payment networks, and consumer groups, as reported by [Consumer Reports] and [FTC].
