Credit unions across the country witness the devastating impact that payment scams have on families, seniors, and everyday consumers. That’s why The League of Credit Unions applauds Senators Mike Crapo (R-ID), Raphael Warnock (D-GA), and Mark Warner (D-VA) for introducing the Task Force for Recognizing and Averting Payment Scams Act (TRAPS Act)—legislation that couldn’t come at a more critical time. With fraud threats rising nationwide, this bipartisan effort offers a thoughtful, timely solution to help protect the 142 million credit union members we serve—and millions more—from financial exploitation. It’s the kind of proactive policymaking consumers need and deserve.
“The TRAPS Act recognizes that the fight against financial crime requires the combined expertise of the entire financial ecosystem—law enforcement, regulators, frontline institutions like credit unions, and the consumers we serve. This is not just about stopping the next scam; it’s about building a resilient, intelligence-driven infrastructure that protects Americans now and into the future,” said Grace Newcombe Colvin, Vice President of Federal Advocacy and Strategy at The League of Credit Unions. “By fostering collaboration between key stakeholders, this bill will help develop best practices and recommendations, as well as empower law enforcement, in the continued fight against fraud.”
As scams and fraud schemes evolve, credit unions stand at the frontline of the battle to protect their members. Day in and day out, these financial cooperatives see the devastating emotional and financial consequences of these criminal activities, which include spoofed calls, phishing schemes, and fraudulent payment platforms. According to the Federal Trade Commission (FTC), U.S. consumers lost over $12.5 billion to fraud in 2024—a staggering 25% increase from the previous year. This alarming rise highlights the urgency of combating payment scams, and the TRAPS Act offers a timely and vital roadmap to address this growing issue. By establishing a Task Force that unites experts from multiple sectors, this legislation is poised to create a comprehensive strategy to tackle fraud and safeguard consumers.
Further compounding the need for action, the FBI’s Internet Crime Complaint Center (IC3) revealed that cyber-related crimes accounted for over $16.6 billion in losses in 2024, marking a 33% increase from the previous year. This escalation in fraud underscores the immediate necessity of passing the TRAPS Act, which would better assist the financial services industry with the tools and information sharing needed to fight this rapidly evolving threat.
“The Task Force offers more than just coordination—it offers a chance to craft holistic, real-world solutions based on firsthand experiences of credit unions,” said Ryan Fitzgerald, Senior Vice President of Advocacy for the GoWest Credit Union Association. “Credit unions, with their deep community ties and member focus, have a vital perspective to contribute and are uniquely positioned to lead the charge to protect and educate consumers. Together, we can implement smart, scalable defenses against fraud that actually work for consumers and empower law enforcement.”
The TRAPS Act also draws from international best practices, setting a global standard for fraud prevention. Notably, in the United Kingdom (UK) and Australia, government initiatives with telecom providers have significantly reduced phone scam complaints. In the UK, measures to block spoofed calls have led to a 65% reduction in complaints. Similarly, the Australian Communications and Media Authority (ACMA) reported a 72% decrease in phone scam complaints following similar call-blocking actions. By integrating these successful strategies, the TRAPS Act sets a global benchmark for protecting consumers from fraud.
The League wishes to commend Senators Crapo, Warnock, and Warner for their leadership in this critical effort, and we thank our sponsors for their unwavering dedication to advancing the fight against fraud. Together, we can secure a safer financial future for all Americans, ensuring that they can transact with confidence in an increasingly digital world.