TRAPS Act

This bill creates a national task force to fight payment scams, like fake texts, spoofed calls, and phony ads or pop‑ups. The Treasury Secretary must set it up within 90 days after the law takes effect. The group brings together the consumer watchdog, telecom and trade regulators, Justice Department, bank regulators, and financial crime experts. It also includes representatives from banks, credit unions, digital payment networks, community banks, consumer groups, tech/online platforms, and several people who speak for scam victims and support networks. The bill defines “payment” as any way to move money electronically to someone else through a platform or middleman.

The task force will study how scams work, share best ways to stop them, and set a plan to teach people how to spot, avoid, and report scams. It will look at what other countries do, work with state, local, and Tribal partners, coordinate with law enforcement, and suggest if new laws are needed. It will also focus on business email compromise scams. The group must meet at least three times in the first year and can meet remotely. Within a year of being set up, it must publish a public report with results, strategies, and recommendations, then update it every year. The task force will end three years after it issues its first report.

Key points

• Who is involved: Federal consumer, telecom, trade, justice, and banking agencies; banks and credit unions; digital payment networks; community banks; consumer groups; tech/online platforms; and victim/support representatives.
• What changes: A cross‑industry task force studies scam trends, shares best practices, coordinates with law enforcement, and sets consumer education and reporting strategies, including on fake texts, spoofed calls, and malicious ads/websites, plus business email compromise.
• When: Set up within 90 days; meets at least three times in the first year; first public report within one year, with annual updates; ends three years after the first report .