Washington, D.C. – Today, U.S. Senator Catherine Cortez Masto (D-Nev.) introduced the Stop the Scammers Act to restore critical Consumer Financial Protection Bureau (CFPB) funding and authorize the CFPB to reward whistleblowers who report wrongdoing. This legislation follows the passage of the Republican tax bill, which slashed CFPB funding in half and removed vital protections for victims of scams and fraud and people experiencing unfair, deceptive, and abusive practices from financial institutions.
“The CFPB has proven to be a champion for everyday Americans, protecting them from scammers and predatory business practices,” said Senator Cortez Masto. “Slashing the CFPB’s funding is a short-sighted decision that will have long-lasting effects on working families and our financial markets. It’s important that we not only restore this funding but also give them more tools to keep us safe from scams.”
The Stop the Scammers Act wouldencourage whistleblowers to come forward by allowing the CFPB to reward whistleblowers with financial compensation from the Civil Penalty Fund. The money for this fund comes directly from monetary penalties imposed on companies and individuals who violate federal consumer financial protection laws. The legislation would also allow whistleblowers to retain independent counsel and protect a whistleblower’s identity. The bill also restores CFPB funding to 12 percent of the Federal Reserve’s operating budget, ensuring the Bureau can carry out its mission and properly protect Americans.
Read the full bill here. The Stop the Scammers Act has been cosponsored by Senate Democratic Leader Chuck Schumer (D-N.Y.), Banking Committee Ranking Member Elizabeth Warren (D-Mass.) and Senators Angela Alsobrooks (D-Md.), Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), John Hickenlooper (D-Colo.), Andy Kim (D-N.J.), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Jeff Merkley (D-Ore.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Bernie Sanders (I-Vt.),Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.).
As the former top law enforcement official in Nevada, Senator Cortez Masto has been a leading voice fight fraud throughout her career. She sounded the alarm on increasing check fraud scams, which cost consumers millions of dollars each year. The Senator’s bipartisan legislation to deter disruptive and potentially harmful phone calls and texts was signed into law in 2020. Most recently, she called out the Trump Administration’s Internal Revenue Service Commissioner for his involvement in a tax fraud scheme in which he encouraged people to claim a fake Tribal tax credit.
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