New Bill would restore Consumer Protection Bureau funding, reward whistleblowers reporting scams

WASHINGTON, DC — NEW LEGISLATION HAS BEEN INTRODUCED TO RESTORE VITAL FUNDING TO THE CONSUMER FINANCIAL PROTECTION BUREAU. U.S. Sen. Kirsten Gillibrand, D-NY, ranking member of the U.S. Senate Aging Committee, this week introduced the Stop the Scammers Act as a response to the Republican-led tax bill, which Congress passed on July 3 to cut the agency's funding in half, jeopardizing vital protections for victims of scams and fraud. The Stop the Scammers Act would also permit the CFPB to reward whistleblowers with financial compensation from the Civil Penalty Fund, the revenue of which comes directly from the monetary penalties imposed on companies and individuals who violate federal consumer financial protection laws. Moreover, the bill would also allow whistleblowers to retain independent counsel and protect a whistleblower's identity.

Meanwhile, in New York, this state's Division of Consumer Protection has released tips to protect oneself from scams involving digital payment apps such as Zelle or Venmo. As their usage has increased, so has the number of fraud reports stemming from scams or hacked accounts, many of which the FDIC does not cover. Last year, consumers nationwide reported over $390 million from scams that used payment apps or services.

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