Every year, millions of older Americans fall victim to financial exploitation—a crime that not only drains bank accounts but also erodes trust, independence, and peace of mind.

If you or someone you love is over 60, this is a topic that hits close to home.

The good news? Congress is finally taking action, and the latest bipartisan proposal could be a game-changer in the fight against elder financial abuse.


Let’s start with the sobering facts. According to a 2023 AARP report, Americans over 60 lose a staggering $28.3 billion annually to financial theft and scams.

Even more heartbreaking, nearly three-quarters of these crimes are committed by someone the victim knows—family, friends, or caregivers.

It’s a betrayal that cuts deep, and it’s happening in every community across the country.


Older adults are often targeted because they may have accumulated savings, own their homes, or simply because they’re perceived as more trusting or less tech-savvy.

Add in the complexities of cognitive decline or physical disabilities, and it’s easy to see why scammers and even unscrupulous relatives see an opportunity.

But it’s not just about the money. Financial abuse can lead to depression, anxiety, and a loss of independence.

It can force older adults to make impossible choices—like skipping medication or cutting back on groceries—just to make ends meet.


Also read: Scammers steal $28,000 from Sacramento senior in elder fraud scheme

Recognizing the urgency, lawmakers from both sides of the aisle have come together to introduce the Financial Exploitation Prevention Act. This isn’t just another bill gathering dust on Capitol Hill—it’s gaining real momentum.

Here’s what you need to know about how this proposal could help protect you and your loved ones:

1. Empowering the SEC to Lead the Charge​

The bill enlists the Securities and Exchange Commission (SEC) to take a more active role in fighting elder financial abuse.

The SEC would be required to report to Congress on the best ways to prevent exploitation through new laws and regulations. This means more oversight, more accountability, and—hopefully—more effective protections.

2. Giving Financial Institutions the Power to Pause Suspicious Transactions​

One of the most innovative aspects of the bill is that it would allow certain financial institutions—like mutual funds and their transfer agents—to temporarily delay transactions if they suspect financial exploitation.

Imagine a scenario where a senior suddenly tries to withdraw a large sum or transfer funds to an unfamiliar account. Instead of letting the transaction go through immediately, the institution could hit the “pause” button, giving time to investigate and potentially stop a scam in its tracks.

This is a big deal. Right now, many financial professionals feel powerless to intervene, even when they see red flags. This bill would give them the legal backing to act in the best interest of their clients.

3. Who’s Behind the Bill?​

The proposal has strong bipartisan support—a rare thing these days! Senators Bill Hagerty (R-Tenn.) and Ruben Gallego (D-Ariz.) have reintroduced the bill in the Senate, while Representatives Ann Wagner (R-Mo.) and Josh Gottheimer (D-N.J.) are championing it in the House.

The House version has already sailed through the Financial Services Committee with unanimous approval, signaling broad support.

4. What Types of Transactions Are Covered?​

The bill specifically targets transactions involving redeemable securities, such as mutual funds. These are common investment vehicles for retirees, making them a prime target for exploitation.

By allowing delays in these transactions, the bill aims to close a loophole that scammers have been exploiting for years.


Also read: Are your finances at risk? New tools aim to stop financial fraud before it happens

If the bill becomes law, you may notice a few changes:

• More Vigilant Financial Institutions: Banks, investment firms, and mutual fund companies will be on higher alert for suspicious activity.
• Possible Delays in Transactions: If a transaction raises red flags, it could be delayed while the institution investigates. While this might be inconvenient in rare cases, it’s a small price to pay for added security.
• Increased Awareness and Reporting: The SEC’s involvement means more public education and better reporting mechanisms for suspected abuse.

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Have you or someone you know experienced financial exploitation? What steps have you taken to protect yourself or your loved ones? Do you think this new bill goes far enough—or is there more Congress should do?