H.R. 4936: Taskforce for Recognizing and Averting Payment Scams Act

The bill titled "Taskforce for Recognizing and Averting Payment Scams Act," or the TRAPS Act, proposes the establishment of a Task Force aimed at addressing the issue of payment scams. Here’s a breakdown of the key components and objectives of the bill:

Task Force Establishment

The Secretary of the Treasury would be required to set up the Task Force within 90 days after the bill becomes law. The Task Force's primary purpose is to recognize and prevent payment scams.

Membership Composition

The Task Force would include a variety of members, chaired by the Secretary or their designee, consisting of representatives from:

• The Bureau of Consumer Financial Protection
• The Federal Communications Commission
• The Federal Trade Commission
• The Department of Justice
• The Office of the Comptroller of the Currency
• The Board of Governors of the Federal Reserve System
• The National Credit Union Administration
• The Federal Deposit Insurance Corporation
• The Financial Crimes Enforcement Network
• Financial institutions, credit unions, digital payment networks, community banks, consumer groups, and technology or online platform industry associations
• Representatives from scam victim organizations and support networks

Task Force Purpose and Duties

The Task Force is intended to:

• Examine current trends in payment scams
• Identify effective methods for preventing such scams
• Issue recommendations to enhance prevention efforts
• Adopt a cross-sector approach considering the broader impact of scams across industries
• Evaluate best practices, assess international methods, review current scam tactics, and strategize consumer education programs
• Coordinate identification and pursuit of scam perpetrators by law enforcement
• Consult with relevant stakeholders, including state and local agencies
• Consider additional federal legislation that may assist in combating payment scams

Meetings and Reports

The Task Force is mandated to meet at least three times in its first year and can meet more frequently as needed, potentially using remote technology. Within one year of its establishment, the Task Force must submit a report detailing its findings and recommendations, including:

• The results of reviews and evaluations
• Strategies for consumer education
• Recommendations for legislative or regulatory enhancements
• Suggestions to improve cooperation among various authorities in combating scams

After the initial report, the Task Force must provide annual updates.

Duration and Termination

The Task Force would remain active for three years following its submission of the required report, at which point it would be terminated.

Relevant Companies

None found