WASHINGTON — Sen. Chuck Schumer yesterday unveiled legislation that would strip away the secrecy surrounding users of prepaid cellphones, which have become a favorite tool of terrorists such as admitted Times Square bomb plotter Faisal Shahzad.

The bill would require merchants to collect identifying information from people buying prepaid phones.

“This proposal is overdue, because for years, terrorists, drug kingpins and gang members have stayed one step ahead of the law by using prepaid phones that are hard to trace,” Schumer said.