TRAPS Act
The TRAPS Act would create the Task Force for Recognizing and Averting Payment Scams within the Department of the Treasury. Its purpose is to study and combat payment scams tied to electronic transfers—such as spoofed calls, scam texts, and deceptive online ads—by examining trends, identifying effective prevention methods, and issuing recommendations to improve detection, prevention, and enforcement. The Task Force would operate cross‑agency and include representatives from financial services, telecommunications, consumer groups, technology platforms, and victim-support networks. It would produce an initial report within a year and then annual updates, and would terminate three years after it submits its required report. The Act also states the Task Force is exempt from Chapter 4 of Title 5, United States Code, indicating it would follow its own process rather than standard federal advisory committee rules.
Key Points
- 1Establishment and scope: Creates the Task Force on Payment Scams, chaired by the Secretary of the Treasury, to study and combat payment scams across financial services, telecom, and tech sectors, with an emphasis on prevention and education.
- 2Wide‑range membership: Includes federal agencies (e.g., CFPB, FCC, FTC, DOJ, OCC, Fed, NCUA, FDIC, FinCEN) plus non-government representatives from financial institutions, credit unions, digital payment networks, community banks, consumer groups, industry associations, and up to 5 victims or scam‑support representatives.
- 3Duties and activities: Tasks include evaluating scam methods (spoofed calls, scam texts, malicious ads), studying international approaches, designing consumer education strategies, coordinating law enforcement efforts, consulting with state/local/Tribal entities, and considering additional federal legislation to curb scams (including business email compromise).
- 4Reporting and oversight: Requires an initial report within one year detailing findings, strategy, and legislative/regulatory recommendations, plus annual updates thereafter with broader cooperation and data‑sharing improvements.
- 5Compensation and governance: Members serving as civilians or federal employees do so without additional compensation beyond their usual government pay.
- 6Sunset and legal framework: The Task Force terminates three years after submitting its required initial report; it is exempt from Chapter 4 of Title 5 (a specific federal advisory committee framework), meaning it operates outside certain standard procedures.