Every day, scammers target American consumers and siphon away millions of dollars – and military families are among the most vulnerable.

From fake investment schemes to imposter “relief” offers, fraudsters prey on servicemembers and veterans, many of whom juggle deployments, frequent relocations, and separation from support networks. It’s no surprise that consumer losses to fraud surged by 25% last year, reaching an estimated $12.5 billion in 2023. Iowans alone lost over $52 million to scams in the past year, according to Rep. Zach Nunn, and many of those scams targeted seniors and military families. This alarming rise in financial fraud demands a coordinated, decisive response. As the Chief Advocacy Officer of the Defense Credit Union Council (DCUC) – the organization representing credit unions that serve our armed forces – I am calling on Congress to take action.

Fortunately, bipartisan lawmakers have introduced a solution: the Task Force for Recognizing and Averting Payment Scams Act, better known as the TRAPS Act. This bill has been introduced in both chambers of Congress – H.R. 582 in the House and S. 539 in the Senate – and it deserves the full support of every lawmaker who cares about protecting military families and all consumers from financial predators. In June, Senators Mike Crapo (R-Idaho) and Mark Warner (D-Va.) introduced the TRAPS Act in the Senate, and on August 5th, Reps. Zach Nunn (R-Iowa) and Jim Himes (D-Conn.) followed with a House companion bill. As an advocacy voice for defense credit unions, DCUC “applauds both Congressman Nunn and Congressman Himes for their leadership on the bipartisan TRAPS Act”. This legislation is a commonsense, consumer-first effort to safeguard the financial well-being of those who serve our country.

The TRAPS Act’s purpose is straightforward: to strengthen protections against payment fraud by bringing all key players to the same table. The bill would direct the U.S. Treasury to establish a national task force to examine current trends in payment scams and coordinate a better response. This task force is not just another government commission – it is designed to include voices from across the financial and law enforcement landscape. Members would include representatives from the Consumer Financial Protection Bureau, Federal Trade Commission, Department of Justice, Federal Communications Commission, financial regulators like the Federal Reserve and FDIC, and the Financial Crimes Enforcement Network. Crucially, a credit union representative with expertise in fighting scams would have a seat at the table. This ensures that the unique perspective of member-owned, community-focused financial institutions is included in crafting solutions.

The TRAPS Act lays out a clear, action-oriented mandate for the task force:

• Identify Fraud Trends: Gather data on emerging payment scams and how criminals target consumers (including servicemembers and seniors).
• Coordinate Prevention Efforts: Break down silos between agencies – share information and develop joint strategies to stop scams before they spread.
• Propose Solutions: Recommend new legislative or regulatory actions to strengthen fraud prevention, based on expert insights from law enforcement, regulators, industry (banks and credit unions), tech companies, and consumer advocates.
• Support Victims: Improve victim assistance and recovery of funds, and issue annual reports to guide policymakers on closing loopholes scammers exploit.

By establishing this task force, the TRAPS Act will “create an inter-agency taskforce to identify effective payment scam prevention measures” and ensure the federal response to fraud keeps pace with evolving threats. The bill has attracted a broad coalition of supporters – from the AARP, to major banking and credit union associations, to fintech and consumer protection groups – underscoring that fighting scams is not a partisan issue but a national imperative.

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While all Americans are at risk from payment scams, military families face unique financial vulnerabilities. Frequent moves, overseas deployments, and the challenges of transition from active duty to civilian life create opportunities that scammers cynically exploit. For example, a young service member relocating to a new base might be targeted by a fake moving company scam; an elderly veteran might fall prey to a fraudulent VA benefit scheme. Our servicemembers deserve better safeguards, and the TRAPS Act delivers exactly that.

By fostering collaboration, the TRAPS Act will strengthen the shields that protect military households. Today, a credit union on base might detect a suspicious transfer from a member’s account – say, an unusual wire to an overseas account. Under current practices, that credit union’s ability to intervene may be limited, especially if the scam technically involved an authorized payment (for example, a soldier was tricked into sending money). The TRAPS Act would “give financial institutions the tools they need to detect, stop, and report fraudulent transactions before the damage is done – empowering institutions to pause suspect payments and better coordinate with law enforcement”. In other words, if a servicemember is being scammed, their credit union or bank could freeze the transaction and alert authorities, rather than helplessly watching the money disappear. This is a game-changer for fraud prevention, and it has the full-throated support of defense credit unions. DCUC has stated unequivocally: “We look forward to working with Congress to advance this commonsense legislation that protects consumers, especially those who serve and sacrifice for our country.”

Beyond stopping individual scams, the TRAPS Act’s emphasis on coordination means patterns of fraud that specifically target military communities will be spotted and addressed. For instance, if there’s a surge of phishing texts impersonating a base credit union or a military relief society, the task force can quickly flag it and disseminate warnings and countermeasures across all institutions. It’s about outsmarting the scammers by pooling knowledge and resources. Senator Mark Warner, one of the bill’s sponsors, noted that this task force will help “build a resilient, intelligence-driven infrastructure that protects Americans now and into the future”. In practical terms, military families will be better protected from losing their hard-earned pay to con artists, and those who prey on our troops will face a united front of agencies and financial firms working together to shut them down.

The TRAPS Act focuses on the growing danger – online and payment fraud – that can wipe out a military family’s savings in an instant. By creating a high-level task force that includes defense credit unions and financial regulators, the bill acknowledges that frontline institutions like credit unions are essential partners in protecting military consumers. It formally brings the credit union voice into federal anti-fraud policymaking, which in turn will lead to better tools, information-sharing, and possibly new safeguards that help all financial institutions catch scams faster. This kind of support is invaluable for small credit union branches serving remote bases, which may not on their own have the resources of big Wall Street banks – but when backed by a national task force intelligence network, they can punch above their weight in fighting fraud.

Moreover, the TRAPS Act will help keep servicemembers banking within the safe, regulated financial system rather than being driven to shady alternatives. If we can reduce scams and increase confidence that fraudulent payments will be stopped or reimbursed, military families are more likely to keep their accounts with reputable credit unions and banks. In contrast, if scams run rampant, some victims lose trust in mainstream institutions altogether – a dangerous spiral that can push people toward cash, unregulated apps, or predatory lending, where they have even fewer protections. In this way, by fighting scams, the TRAPS Act indirectly bolsters the broader goal of maintaining access to honest financial services on base. It’s part of a continuum of pro-consumer, pro-military measures that Congress must advance.

When our military communities are financially secure and informed, they are less likely to fall into debt, less likely to become fraud victims, and better able to focus on their missions. The TRAPS Act is a critical step toward that security. It will help “defend those who have served our country” not just on the battlefield, but on the home front where financial predators lurk.

The case for the TRAPS Act could not be clearer. At a time when fraud is at an all-time high and military families are in scammers’ crosshairs, Congress has a bipartisan, fully formed solution on the table. The Task Force for Recognizing and Averting Payment Scams Act will protect Americans’ money, strengthen our financial system’s defenses, and especially safeguard those who wear the uniform and their loved ones at home. As the chief advocate for defense credit unions, I strongly urge every member of Congress – in both the House and Senate – to cosponsor and swiftly pass the TRAPS Act. This bill has Republican and Democrat champions in both chambers and has garnered support from consumer advocates and the financial industry alike. It is not often that we see such unity on an issue; Congress should take advantage of this consensus and deliver a win for the American people.

Passing the TRAPS Act will show our servicemembers and veterans that we have their backs in every way – not only in providing for national defense, but in defending their hard-earned paychecks from thieves and swindlers. It will also reaffirm the importance of maintaining strong, mission-focused financial partners on military bases.

In closing, let me emphasize that when a young recruit, or a military spouse, or a retired veteran walks into a credit union on base, they’re not just conducting a transaction – they’re gaining a protector and an ally. The TRAPS Act recognizes this by empowering those very protectors to join forces with government agencies to combat fraud. It’s a smart, proactive, and patriotic piece of legislation. I urge lawmakers: stand with us in protecting our military families’ financial security. Support the TRAPS Act and help send it to the President’s desk without delay. Our heroes in uniform deserve nothing less.