Halfpoint Images | Moment | Getty Images
Lawmakers in Congress have taken a bipartisan step toward better protecting vulnerable adults from financial fraud.
In a 414-2 vote, the House last week passed the Financial Exploitation Prevention Act of 2025, H.R. 2478. The bill would allow open-end funds — mutual funds, most exchange-traded funds — and their transfer agents to pause redemption requests from older adults or those with disabilities if financial exploitation is suspected. Transfer agents maintain shareholder records and process transactions.
“Many seniors and vulnerable adults need that extra layer of defense from fraud that has become tragically common in today’s world, and [this bill] is a commonsense step to protecting parents, grandparents and families in communities around our country,” said Rep. Ann Wagner, R-Mo., a lead sponsor of the bill, in a statement when the House approved the measure.
The bill now heads to the Senate, where it is unclear whether or when lawmakers might take up the House-passed measure or its companion bill, S. 2840, which is pending in the Banking Committee. A previous version of the legislation passed the House 419-0 in 2023 but expired after the Senate took no action.
Older adults reported $2.4 billion in fraud losses in 2024
Scams reported to the Federal Trade Commission by adults age 60 and older reached $2.4 billion in 2024, up 26.3% from $1.9 billion in 2023 and 300% more than the $600 million reported in 2020, according to the FTC’s annual report to Congress, released in December. The increase is driven by scams that involve individual losses of $100,000 or more, accounting for $1.6 billion, or 68%, of the total amount.
However, because most fraud goes unreported, the FTC estimates the real losses experienced by older adults in 2024 may be as much as $81.5 billion. The bulk of the money lost was due to investment scams.
While adults age 60 or older are more likely to report large losses, financial fraud against all generations has increased over time. In 2025, total losses reported to the FTC reached roughly $15.9 billion — the highest on record and a jump of about 27% from $12.5 billion in 2024. Since 2020, reported losses have increased nearly 430%, according to the FTC.
How the bill would stop fraud in its tracks
The bill that cleared the House aims to prevent victims of scams from being parted with their money. Specifically, it allows the delay of a requested redemption if the fund company or transfer agent believes the transaction involves the financial exploitation of a person age 65 or older or an adult unable to protect their interests due to a disability.
The bill says the delay can be for up to 15 days initially and then another 10 days if it is determined that exploitation is involved. Longer delays can be imposed if permitted by a court, state regulator or other applicable authority.
The bill also would require the Securities and Exchange Commission to issue a report, in consultation with certain other federal agencies, to Congress within one year on regulatory and legislative policies that could reduce financial fraud among vulnerable adults.
While the bill doesn’t require that investment companies participate, those that do would have to ask their customers to provide an adult contact — also known as a “trusted contact” — to be notified in certain situations, including if fraud is suspected.
Already, many banks and other financial institutions ask accountholders for a trusted contact. The Financial Industry Regulatory Authority, or FINRA, requires brokerages to make a reasonable effort to add a trusted contact to accounts, although investors are not required to provide one.
Red flags to watch for to avoid fraud
While scams can be tricky to spot, there are some red flags that experts recommend watching for, including when you’re asked to act quickly.
“Whenever 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 could be hard to get it back, Carpenter said.
His staff has thwarted attempted fraud, including one case of a 76-year-old woman who wired $50,000 to a crypto account that scammers helped her set up — they convinced her that her credit union account had been compromised and she was protecting her money by moving it. In that case, the joint account holder — the victim’s daughter — was contacted, the police were alerted and the money was recovered the next day.
Additionally, if you’re told to lie about what you’re doing with the money, that’s a big red flag.
“Any time someone says, ‘Don’t tell anyone this,’ or they’re encouraging you to be secretive or asking you to make up a story … that’s got to be suspect,” Carpenter said.
