WASHINGTON, DC (June 11, 2025) |
Yesterday evening, U.S. Senators Mike Crapo (R-ID) and Mark Warner (D-VA) introduced the Task Force for Recognizing and Averting Payments Scams (TRAPS) Act, a bipartisan effort to address the alarming rise in payment fraud. The legislation aims to strengthen protections for consumers—particularly vulnerable populations like military families—by enhancing coordination among financial institutions and law enforcement.
The Defense Credit Union Council (DCUC) issued the following statement in support:
“DCUC applauds Senators Crapo, Warner, Moran, and Warnock for their leadership on the bipartisan TRAPS Act. As the voice for defense credit unions serving our nation’s military and veterans, we were proud to work with our partners in the lead-up to this legislation’s introduction. Payment scams targeting military families are on the rise, and credit unions are often the first line of defense.
This bill gives credit unions the tools they need to detect, stop, and report fraudulent transactions before the damage is done—empowering financial institutions to pause suspect payments and better coordinate with law enforcement. DCUC strongly supports the TRAPS Act and looks forward to working with Congress to advance this commonsense legislation that protects consumers, especially those who serve and sacrifice for our country.”
Last week, Senate staff from the offices of Senators Warner and Crapo finalized the legislative language for the TRAPS Act and cleared it with Senate Legislative Counsel. The Act would formally establish a task force charged with addressing the nationwide surge in payment fraud.
According to the Federal Trade Commission (FTC), consumer losses to fraud have increased by 25% over the past year, reaching a staggering $12.5 billion in 2023 alone.
U.S. Senators Jerry Moran (R-KS) and Raphael Warnock (D-GA) have joined as original co sponsors of the legislation.
The TRAPS Act has earned broad support from across the financial and consumer protection sectors, including AARP, Early Warning Services, Electronic Transactions Association, GoWest
Credit Union Association, American Bankers Association, Consumer Bankers Association, National Bankers Association, DCUC, and America’s Credit Unions.