NUNN BILLS TO COMBAT PAYMENT SCAMS, CUT FINANCIAL RED TAPE PASS FINANCIAL SERVICES COMMITTEE

The following information was released by the office of Iowa Rep. Zach Nunn:

Today, the House Financial Services Committee advanced two bipartisan bills introduced by Representative Zach Nunn (IA-03) the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act and the Consumer-Led Enhancement of Annuity and Insurance Registration Forms (CLEAR Forms) Act aimed at stopping payment scams before they drain Iowans' life savings and simplifying the registration paperwork behind the life insurance and annuity products Iowa families rely on.

On Tuesday, the House passed our bipartisan GUARD Act, which would give law enforcement the tools to hunt down scammers and recover Iowans' stolen money. Today, we're advancing the TRAPS Act to stop these criminals before they ever get their hands on an Iowan's life savings, said Rep. Nunn. We're going after fraud from every angle: bringing law enforcement, banks, regulators, and technology experts together to identify these scams earlier and hold the criminals behind them accountable. Iowans worked too hard for their money to lose it to a scammer hiding behind a screen.

The bipartisan TRAPS Act, co-led by Representative Jim Himes (CT-04), would create a coordinated federal task force led by the U.S. Department of the Treasury dedicated to preventing scams. The task force would examine emerging fraud trends, including increasingly sophisticated romance and investment scams, identify effective prevention strategies, improve coordination across the public and private sectors, and recommend legislative and regulatory solutions to better protect consumers.

"Scammers have always been a contemptible part of our financial reality, but AI-powered voice cloning and deepfakes have turbo-charged the tools they have at their disposal to swindle Americans especially seniors out of their hard-earned money," said Rep. Himes. "I'm ecstatic that the TRAPS Act passed out of committee with overwhelming bipartisan support as now, more than ever, we need to bring to bear a whole of government approach that combats financial schemes, protects our citizens, and supports victims of fraud. There's no time to waste: let's put this bill to a full vote."

"Representatives Jim Himes and Zach Nunn deserve credit for recognizing a simple truth: criminals share information, exploit gaps and constantly evolve and those working to stop them must be equally coordinated," said Early Warning CEO Cameron Fowler. "The TRAPS Act will help turn the collective expertise of regulators, law enforcement and industry into action. We have seen the impact of coordination: over the past four years, Early Warning has helped financial institutions stop approximately $16.4 billion in potential fraud. Extending that collaboration across the broader ecosystem will help identify emerging threats sooner and better protect American consumers and small businesses."

"Defeating today's sophisticated payment fraud and scams requires a cross-sector strategy," said Chris Sparks, Head of Card Fraud, Capital One. "By authorizing a dedicated task force, the TRAPS Act creates the public-private framework necessary to disrupt financial criminals and safeguard everyday consumers. Capital One commends Representatives Nunn and Himes for advancing their bipartisan bill through committee markup, and we look forward to supporting its passage on the House floor."

The committee also advanced Rep. Nunn's bipartisan CLEAR Forms Act, co-led by Representative Brittany Pettersen (CO-07).

Iowans shouldn't have to dig through hundreds of pages of Washington paperwork to make an informed decision about their financial future, continued Rep. Nunn. Our CLEAR Forms Act cuts unnecessary red tape, gives families the information they actually need in one place, and makes it easier to understand the financial products they're buying.

The bipartisan CLEAR Forms Act closes a gap in how the Securities and Exchange Commission (SEC) handles newer insurance products. With no tailored form available, issuers register those products on the same general-purpose forms built for corporate stock and debt offerings, burying the information that helps determine whether a product actually fits a family's situation. The legislation directs the SEC to develop tailored forms within 12 months that focus on the information consumers actually need to make informed decisions.

With today's committee passage, both bills now advance to the full House of Representatives for consideration.