WASHINGTON—Representatives Zach Nunn (R-IA) and Jim Himes (D-CN) Tuesday introduced the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act, bipartisan legislation intended to protect Americans, especially seniors, from payment fraud by creating a coordinated federal task force dedicated to preventing scams.
“Scammers are becoming more sophisticated, and too often, Iowa families—especially seniors—are the ones paying the price,” said Nunn on his website. “In just the past year, Iowans lost over $52 million to scams ranging from fake investments to romance cons. 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.”
Payment scams, fraudulent schemes in which bad actors manipulate victims into voluntarily sending money, are rising at an alarming rate. Iowans reported more than 3,900 fraud complaints last year, with losses exceeding $52 million across a range of scam types. In 2024 alone, the U.S. experienced a 25% increase in fraud from the previous year – underscoring the urgent need to address this growing concern, Nunn’s site noted.
The Defense Credit Union Council Tuesday shared its support for the bill.
"DCUC applauds both Congressman Nunn and Congressman Himes for their leadership on the bipartisan TRAPS Act. As the voice of defense credit unions serving military members, veterans, and their families, we are proud to support this important legislation," said Anthony Hernandez, DCUC president and CEO.
Hernandez pointed out payment scams disproportionately affect military communities—especially senior veterans and active-duty families navigating frequent relocations, deployments, and service-to-civilian transitions.
“Credit unions are often the first to identify and respond to these threats. The TRAPS Act will strengthen our ability to act quickly and collaboratively by creating a unified task force of regulators, law enforcement, and industry experts,” he said. “By empowering institutions to detect, pause, and report suspicious transactions, this legislation provides the critical infrastructure needed to protect consumers before damage is done. We look forward to working with Congress to advance this commonsense, consumer-first bill that helps defend those who have served our country."
America's Credit Unions and the Iowa CU League commented on the legislation.
"Despite Americans' vigilance and credit unions' efforts to keep members informed of threats and protect accounts, fraudsters remain relentless in scamming people out of their hard-earned money,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. “That's why America's Credit Unions supports the TRAPS Act, which would create an inter-agency taskforce to identify effective payment scam prevention measures. We're grateful for Representative Nunn's leadership to introduce this legislation in the House and we urge Congress to swiftly take it up to help keep consumers' money safe."
“We greatly appreciate Representative Nunn’s leadership in introducing the TRAPS Act and his commitment to protecting Iowans from financial scams. Credit unions in Iowa and across the country are on the front lines of detecting and preventing financial fraud. This bill recognizes the need for stronger coordination and proactive solutions to combat evolving threats and keep our members safe,” said Iowa Credit Union League President/CEO Murray Williams.