U.S. Senator Jerry Moran of Kansas co-introduced the bipartisan task force for recognizing and averting payment scams, or “TRAPS” act, which would create a task force to combat the growing issue of payment scams. The Federal Trade Commission reported losses to fraud have soared 25% over the last year, to $12.5 billion nationwide. Moran says combating the global rise in fraud starts with making certain federal regulators and law enforcement agencies are coordinating effectively to address these threats.
Payment scams occur when a scammer induces a victim, usually under false pretenses of romance or investments, to voluntarily send them money. This legislation would bring together industry, law enforcement, financial regulators and telecommunication regulators to decide best practices for identifying and preventing future scams.
