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New bill aims to curb financial fraud targeting older Americans
🇺🇸 United States /Crime & Justice

New bill aims to curb financial fraud targeting older Americans

From PBS NewsHour · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Approved/passed
  • A new bipartisan bill in Congress, the Financial Exploitation Prevention Act, aims to protect seniors and vulnerable adults from financial fraud.
  • The bill would allow financial institutions to pause suspicious transaction requests from individuals aged 65 and older or those with disabilities.
  • Financial abuse cost older victims nearly $2.4 billion in 2024, with AI sophistication increasing fraud risks.

Congress is advancing a new bipartisan bill designed to combat financial fraud targeting seniors and other vulnerable populations. The Financial Exploitation Prevention Act would empower financial institutions to temporarily halt suspicious transaction requests, providing a crucial window to investigate potential scams.

Financial exploitation is a huge problem in this country

— Nina KohnAn elder law expert at Syracuse University College of Law, commenting on the prevalence of financial fraud.

The legislation specifically targets individuals aged 65 and older, as well as adults with disabilities, who are often prime targets for financial exploitation. When an institution reasonably believes fraud or exploitation is occurring, it can pause redemption requests. "The concern is, in part, that individuals may lose their life savings," explained Nina Kohn, an elder law expert at Syracuse University College of Law. "So financial institutions and entities that are holding individuals' money can be empowered to help put the brakes on scams by delaying disbursement to a suspected victim."

The concern is, in part, that individuals may lose their life savings. So financial institutions and entities that are holding individuals' money can be empowered to help put the brakes on scams by delaying disbursement to a suspected victim.

— Nina KohnExplaining the purpose and potential impact of the Financial Exploitation Prevention Act.

Financial abuse represents a significant problem, with older victims losing nearly $2.4 billion in 2024, according to reported incidents to the Federal Trade Commission. The FTC notes that this figure likely represents only a fraction of the actual losses due to underreporting. The sophistication of fraudsters, aided by artificial intelligence, is making it increasingly difficult for individuals to detect and avoid scams.

there's broad agreement that protecting seniors from financial exploitation shouldn't be a partisan issue

— Rep. Andrew GarbarinoA co-sponsor of the bill, commenting on the bipartisan support for the legislation.

The bill passed the House with overwhelming support, 414-2, signaling broad agreement on the need to protect seniors. "There's broad agreement that protecting seniors from financial exploitation shouldn't be a partisan issue," stated Rep. Andrew Garbarino, R-N.Y., a co-sponsor. The legislation aims to provide financial institutions with additional tools to "recognize when something isn't right and help stop financial abuse before the damage is done."

recognize when something isn't right and help stop financial abuse before the damage is done.

— Rep. Andrew GarbarinoDescribing the tools the legislation provides to financial institutions.
DistantNews Editorial

Originally published by PBS NewsHour in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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