Des Moines Sun

Representatives Zach Nunn (IA-03) and Jim Himes (CT-04) have introduced the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act, a bipartisan bill aimed at addressing the rise in payment fraud, particularly among seniors. The legislation proposes the creation of a federal task force to coordinate efforts to prevent scams that manipulate victims into sending money.

“Scammers are becoming more sophisticated, and too often, Iowa families—especially seniors—are the ones paying the price,” said Rep. Nunn. “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.”

Recent data show that Iowans reported more than 3,900 fraud complaints last year with losses exceeding $52 million. Nationwide, there was a 25% increase in fraud cases in 2024 compared to the previous year.

“Congress should be focused on passing legislation that makes a real impact on our constituents. That’s why I’m proud to join Congressman Nunn in introducing the TRAPS Act, which will save Americans money by streamlining federal efforts to prevent payment scams,” said Rep. Himes. “Families lose billions of dollars each year to fraudulent schemes, and I hope to see this legislation passed quickly into law so that we can move towards more meaningful protection for our constituents.”

Iowa Bankers Association President and CEO Adam Gregg stated: “The Iowa Bankers Association thanks Congressman Nunn for introducing the TRAPS Act. Fighting fraud has been a major priority of the IBA, and nobody does more than Iowa banks to protect their customers from fraud. This legislation will help coordinate a national strategy to fight fraud and protect the wealth of hard-working Americans.”

AARP Government Affairs Director Clark Flynt-Barr added: “AARP, which advocates for the more than 100 million older Americans age 50 and older, is pleased to endorse the Taskforce for Recognizing and Averting Payment Scams Act, or TRAPS Act. This bipartisan legislation represents a crucial step towards safeguarding older Americans in the rapidly evolving landscape of digital payments and financial services.”

Criminals have used new technologies for emotionally manipulative schemes such as romance or investment scams. In January 2025, an alert from the Iowa Department of Public Safety warned about an increase in "grandparent scams," where perpetrators impersonate grandchildren seeking urgent funds from elderly individuals.

Currently there is no unified federal approach targeting these types of scams before they occur; most responses happen after losses are reported.

The TRAPS Act would establish a task force led by the U.S. Department of the Treasury with participation from agencies including Consumer Financial Protection Bureau, Federal Communications Commission, Federal Trade Commission, Department of Justice, as well as representatives from financial institutions and consumer groups. The group would examine trends in payment fraud, coordinate prevention across agencies, propose solutions through reports issued annually for three years, and aim to improve support services for victims.

Supporters include Early Warning Services, Electronic Transactions Association, Iowa Credit Unions, American Bankers Association, Consumer Bankers Association, Defense Credit Union Council and America’s Credit Unions.

Companion legislation has been introduced in the Senate by Senators Mike Crapo (R-ID), Mark Warner (D-VA), Jerry Moran (R-KS), and Raphael Warnock (D-GA).

The full text of the bill is available online.