Davis, Nunn Introduce Bill to Protect Seniors from Fraud
WASHINGTON, D.C. — Congressmen Don Davis (NC-01) and Zach Nunn (IA-03) introduced H.R. 9668, the Safeguarding Transactions to Outpace Predatory (STOP) Senior Fraud Act, which would help financial institutions protect older adults and vulnerable individuals from financial exploitation by authorizing them to refuse or temporarily delay certain transactions when they reasonably believe financial exploitation has occurred, is occurring, or is being attempted.
In 2024, Americans over age 60 reported over $4.8 billion in losses to fraud schemes. The actual number of fraud cases is unknown because many incidents go unreported, particularly among older adults. For seniors living on fixed incomes and relying on savings accumulated over a lifetime, such losses can be devastating and difficult to recover from. At the same time, criminals are using increasingly sophisticated tactics that make fraudulent activity harder to detect and prevent.
Under the STOP Senior Fraud Act, a financial institution may delay a transaction for up to 55 days and extend the delay for an additional 30 days if an internal review supports its suspicion of financial exploitation. The institution may terminate the delay if it determines that financial exploitation will not occur or if directed to do so by a federal court. If a transaction is delayed or refused, the bill would require the financial institution to notify a trusted contact and authorized parties on the account, unless they are suspected of involvement in the financial exploitation. The institution would also be required to report the suspected exploitation to adult protective services, law enforcement, and a federal regulatory authority. Additionally, the bill would require employee training to identify and respond to financial exploitation and provide liability protections for financial institutions acting in good faith under the law. The bill would preserve any state or local law or regulation that provides stronger protections for seniors or vulnerable individuals.
“Across eastern North Carolina, seniors have spent decades working hard, raising families, serving their communities, and saving for retirement. Every dollar they have earned represents a lifetime of sacrifice, responsibility, and perseverance. No one should lose those hard-earned savings to criminals who prey on older Americans. The STOP Senior Fraud Act gives financial institutions the tools to step in before a scam steals a lifetime of savings. Protecting our seniors means protecting their independence, preserving their dignity, and honoring the lifetime of work that has strengthened families and built communities across eastern North Carolina,” said Congressman Don Davis.
“Today, too many Iowa bankers are forced to watch as seniors unknowingly wire away their life savings to scammers because they lack the authority to intervene. Our bipartisan bill gives financial institutions the tools to temporarily delay suspicious transactions, contact a trusted family member, and notify law enforcement. It's a simple, commonsense way to empower the people who know their customers best to stop fraud before it's too late,” said Congressman Zach Nunn.
“We applaud Rep. Don Davis and Rep. Zach Nunn for introducing the STOP Senior Fraud Act, which would allow banks to temporarily delay transactions if they suspect financial exploitation has occurred or is being attempted. This important tool will help combat financial fraud targeting older and vulnerable adults and stop many instances of exploitation in their tracks. We urge lawmakers to move this bill forward to protect consumers,” said Rob Nichols, President and CEO of American Bankers Association.
“America’s Credit Unions thanks Representatives Davis and Nunn for understanding the critical role credit unions play in protecting consumers and combatting fraud. As fraudsters continue to innovate, the STOP Senior Fraud Act will allow credit unions to further protect the more than 146 million members across the country by establishing voluntary trusted contact programs. This legislation will help level the playing field and ensure a secure financial services ecosystem,” said Scott Simpson, President and CEO of America’s Credit Unions.
“Credit unions have long been on the front lines of protecting members from financial fraud, particularly older adults who are increasingly targeted by sophisticated scams. The STOP Senior Fraud Act provides financial institutions with additional tools and legal certainty to intervene when financial exploitation is suspected, helping stop fraud before hard-earned savings are lost. The Carolinas Credit Union League is proud to support this bipartisan legislation and applauds Congressman Don Davis for his leadership in advancing commonsense protections for some of our most vulnerable citizens,” said Dan Schline, President and CEO of Carolinas Credit Union League (CCUL).
“The safety of the American financial system has never been more important. The fraud and scam epidemic stands at crisis levels with billions of dollars being stolen from Americans every single year through increasingly sophisticated scams and international criminal enterprises. Financial institutions should serve as critical gatekeepers in a unique position to protect retirees and vulnerable elderly adults. Congressman Davis' bill is a significant step towards truly prioritizing protecting Americans from fraud and financial ruin,” said Michael C. Bixby, President of Public Investors Advocate Bar Association (PIABA).
“ICBA and the nation’s community bankers thank Reps. Don Davis and Zach Nunn for introducing the STOP Senior Fraud Act to help community banks combat the scourge of elder fraud and scams. Allowing community banks to have more flexibility to place temporary holds in cases of suspected elder fraud will help Main Street institutions protect consumers and fight back against financial crimes in the communities they serve,” said Rebeca Romero Rainey, President and CEO of the Independent Community Bankers of America.
The full bill text can be found HERE.