Lawmakers Introduce Protecting Consumers from Payment Scams Act

Payment fraud is on the rise, with fraudsters using scams to steal money from consumers through a variety of payment systems, including mobile wallets, payment apps, and wire transfers. The Federal Trade Commission received 2.6 million fraud complaints in 2023 totaling $10 billion in reported losses, though experts warn the losses are likely much higher since fraud is underreported.

The proposed Protecting Consumers from Payment Scams Act would update the Electronic Fund Transfer Act (EFTA) to better protect consumers who are defrauded when they make payments. The bill would, among other things, protect consumers when they are defrauded into initiating a transfer to a bad actor, when they lose funds through fraudulent bank wire transfers, and when their accounts are inexplicably frozen or closed.

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