Lawmakers approved bipartisan bill to battle fraud among older adults
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Lawmakers in Congress have taken a bipartisan step to better protect vulnerable adults from financial fraud.
Last week, the House passed the Financial Abuse Prevention Act of 2025 by a vote of 414-2. HR 2478. The bill would allow open-ended funds (mutual funds, most exchange-traded funds) and their transfer agents to pause refund requests from older adults or people with disabilities if financial exploitation is suspected. Transfer agents maintain shareholder records and process transactions.
“Many elderly and vulnerable adults need an extra layer of defense against fraud that has become tragically common in today’s world and [this bill] It is a common-sense step to protect parents, grandparents, and families in communities across our country,” Rep. Ann Wagner, a lead sponsor of the bill, said in a statement when the House approved the measure.
The bill now goes to the Senate; It’s unclear whether or when lawmakers here will take up the House-passed measure or its companion bill. P.2840Pending in the Banking Committee. A previous version of the legislation passed the House 419-0 in 2023 but expired when the Senate took no action.
Older adults report $2.4 billion in losses from fraud in 2024
Scams reported to the Federal Trade Commission by adults 60 and older reached $2.4 billion in 2024, an increase of 26.3% from $1.9 billion in 2023 and a 300% increase from the $600 million reported in 2020, according to the FTC. Annual report to CongressIt was published in December. The increase was driven by scams involving individual losses of $100,000 or more, accounting for $1.6 billion, or 68%, of the total.
But because most scams go unreported, the FTC estimates that actual losses experienced by older adults in 2024 could be as much as $81.5 billion. Most of the money lost was due to investment scams.
While adults 60 and older are more likely to report large losses, financial fraud against all generations has increased over time. Total losses in 2025 Reported to FTC reached approximately $15.9 billion; That’s the highest on record and an increase of nearly 27% from $12.5 billion in 2024. Reported losses have increased nearly 430% since 2020, according to the FTC.
How will the bill stop fraud?
The bill, which cleared the Parliament, aims to prevent the sharing of money of fraud victims. Specifically, the fund company or transfer agent allows the requested repayment to be deferred if it believes that the transaction involves the financial exploitation of a person 65 years of age or older or an adult who is unable to protect the interests of an adult for some reason. disability
The bill says the delay could initially last up to 15 days and then an additional 10 days if it is determined that abuse has occurred. Longer delays may apply if permitted by a court, state regulator or other relevant authority.
The bill would also require the Securities and Exchange Commission, in consultation with certain other federal agencies, to issue a report to Congress within one year on regulatory and legislative policies that could reduce financial fraud among vulnerable adults.
While the bill does not require investment companies’ involvement, they would have to ask their clients to provide an adult contact person (also known as a “trusted person”) in certain cases, including if fraud is suspected.
Currently, many banks and other financial institutions require a reliable connection from account holders. The Financial Industry Regulatory Authority, or FINRA, is a trustworthy person accounts, but investors are not required to provide this.
Red flags to look out for to avoid scams
While scams can be difficult to spot, there are some red flags that experts recommend you look out for, including situations where you’ll be asked to act quickly.
“Anytime there’s a sense of urgency … you have to pause,” said Jeff Carpenter, CEO of Weokie Federal Credit Union in Oklahoma City.
“Pausing is the most important thing. If they can create a sense of urgency and get you to move the money quickly, it may be difficult to get the money back,” Carpenter said.
His staff thwarted fraud attempts, including a case in which a 76-year-old woman wired $50,000 to a bank. The crypto account that the scammers helped him set up — they convinced him that his credit union account had been compromised and that he was protecting his money by moving it. In this case, the joint account holder (the victim’s daughter) was contacted, the police were notified and the money was recovered the next day.
Also, if you’re told to lie about what you do with money, that’s a big red flag.
“Anytime someone says, ‘Don’t tell anyone this,’ or encourages you to keep a secret, or asks you to make up a story… that has to be suspicious,” Carpenter said.
