A group of financial industry associations are calling on Congress to pass a bill that seeks to protect vulnerable adults from financial exploitation.
The bill in question is called the Financial Exploitation Prevention Act (S. 1841), and it would allow companies to postpone securities redemption if they suspect exploitation of seniors or individuals unable to protect their interests.
The call from the groups – including the Financial Services Institute (FSI), the Investment Company Institute (ICI), the Insured Retirement Institute, and the Securities Industry and Financial Markets Association (SIFMA) – coincides with World Elder Abuse Awareness Day, which was June 15.
“As we mark World Elder Abuse Awareness Day, we applaud lawmakers for their commitment to preventing elder financial abuse and increasing protection for seniors,” FSI President and CEO Dale Brown said. “However, there is more to do, which is why we urge the Senate to pass the Financial Exploitation Prevention Act now. With the increase in new technologies, including AI, financial fraudsters are growing more sophisticated in their schemes to defraud seniors.”
The bipartisan legislation comes at a time when financial exploitation of seniors is increasing. In 2022, according to the Bureau of Justice Statistics, there were 167,889 reported fraud or other financial incidents committed against adults aged 65 or older. In 2023, elder fraud complaints increased by 14 percent, with corresponding losses rising by 11 percent.
“We strongly support the efforts in the Senate to pass the Financial Exploitation Prevention Act (S. 1841) to protect our senior citizens from the threat of financial exploitation,” SIFMA President and CEO Ken Bentsen said. “This legislation is a helpful, additional tool in providing essential safeguards for vulnerable adults. As financial crimes against seniors continue to rise, it is imperative that we equip our industry with the tools needed to combat these increasingly sophisticated schemes.”
The bill was introduced by U.S. Sens. Bill Hagerty (R-TN) and Jon Tester (D-MT), along with U.S. Reps. Josh Gottheimer (D-NJ) and Ann Wagner (R-MO).
“The bill would give our industry better tools to address suspected financial exploitation and abuse of seniors and those with mental and physical disabilities,” ICI CEO and President Eric Pan said. “We urge the Senate to pass the bipartisan Financial Exploitation Prevention Act swiftly so seniors and vulnerable investors can receive a greater level of protection.”
The House of Representatives passed the bill last year, and it is now before the Senate.
“Prevention of financial exploitation and the protection of older and vulnerable Americans is an important IRI objective,” Wayne Chopus, president and CEO of IRI, said. “Our members are on the front lines of this issue, working with clients across America every day. As a result, they are often the first to notice that a client may be the victim of a financial crime.”