Published: August 2024

Advocates support bill to increase protections for bank account and payment app users

Consumer Action was among supporters of federal legislation designed to protect consumers from fraud perpetrated via person-to-person payment apps and bank accounts, which resulted in reported losses totaling $10 billion in 2023.

Consumer Action was among 49 organizations and academics to support companion bills in the U.S. Senate and House of Representatives aimed at protecting consumers from fraud perpetrated via person-to-person (P2P) payment apps and bank accounts. Consumers have been losing billions of dollars each year to this type of fraud. The Protecting Consumers from Payment Scams Act would create incentives for Big Tech and companies facilitating payments to find ways to make their payment systems safer. The Federal Trade Commission (FTC) received 2.6 million fraud complaints in 2023, totaling $10 billion in reported losses, though actual losses are likely much higher since fraud is vastly underreported. The legislation would, among other things, require the financial institutions initiating and receiving a fraudulent payment to share responsibility; clarify that consumers are protected from unauthorized charges, fraud and errors when using bank wire transfers and electronic transfers authorized by phone call; ensure remedies for consumers whose accounts are frozen or closed due to fraud perpetrated by others; and protect consumers against payment errors in certain cases. The bill was introduced in the House by Rep. Maxine Waters (D-CA) and in the Senate by Sen. Richard Blumenthal (D-CT) and Sen. Elizabeth Warren (D-MA).

Lead Organization

National Consumer Law Center

More Information

Read the press release here.

Download PDF

No Download Available