TRAPS Act

The TRAPS Act establishes a Task Force for Recognizing and Averting Payment Scams within the Treasury Department to study and combat electronic payment scams. The Task Force will include representatives from federal agencies, financial institutions, consumer groups, and other stakeholders, and must issue a public report with findings and recommendations within one year, with annual updates, before terminating after three years.

Sec. 2, Definitions: Defines key terms: 'payment' as any electronic fund transfer via a platform or intermediary; 'Secretary' as the Treasury Secretary; and 'Task Force' as the group established under section 3.

Sec. 3, Task Force on Payment Scams: The Treasury Secretary must create the Task Force within 90 days. It is chaired by the Secretary or a designee and includes representatives from agencies like the CFPB, FCC, FTC, DOJ, OCC, Federal Reserve, NCUA, FDIC, and FinCEN, plus appointed experts from financial institutions, credit unions, digital payment networks, community banks, consumer groups, tech industry associations, and up to five victim or stakeholder representatives. Members serve until the Task Force ends, and vacancies are filled the same way. The Task Force's purpose is to examine scam trends, identify prevention methods, and issue cross-sector recommendations. It must meet at least three times in the first year. Duties include evaluating anti-scam best practices, assessing international efforts, reviewing scam methods, developing consumer education strategies, coordinating law enforcement, consulting state/local/Tribal agencies, recommending federal legislation, and addressing business email compromise scams. Members who are federal employees serve without extra pay. Within one year of establishment, the Task Force must submit a public report to Congress detailing its reviews, strategies, legislative recommendations, and ways to enhance cooperation among authorities. Annual updates follow. The Federal Advisory Committee Act does not apply. The Task Force terminates three years after submitting its first report.