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This bill amends federal law to protect consumers from payment scams by treating fraudulently induced electronic fund transfers the same as unauthorized transfers. Currently, when a scammer tricks a consumer into authorizing a money transfer, the consumer may have less legal protection than if their account was hacked without permission. The bill ensures that consumers who are deceived into sending money receive the same liability protections and reimbursement as victims of actual unauthorized transfers. Financial institutions would be required to share the costs of fraudulent transfers evenly between the bank holding the consumer's account and the receiving bank, with an additional sharing mechanism for financial institutions that support the transfer process. The legislation also clarifies what counts as an "error" under consumer protection law and expands the definition of financial institutions covered by these protections.

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