U.S. House Passes Bill to Protect Seniors from Financial Exploitation
The U.S. House has passed the Financial Exploitation Prevention Act (H.R. 2478), aimed at addressing a significant rise in senior fraud losses, which surged by 59% according to FBI data reported for 2025. Americans aged 60 and older lost $7.748 billion that year with an average loss of $38,000 per victim. The bill is now under consideration in the Senate. The legislation seeks to amend the Investment Company Act of 1940 by granting mutual fund companies authority to delay or freeze transactions suspected of involving financial exploitation. This would allow up to a 25-business-day hold on suspicious withdrawals, providing time for verification and potentially preventing fraud-related losses from retirement accounts like IRAs and 401(k)s. The bill responds in part to concerns that the current regulatory framework does not adequately protect seniors or vulnerable adults when they fall victim to scams. Scammers often target victims through phone calls or emails posing as government officials, leading them to liquidate their investments under false pretenses.
Topics: financial regulation Investment Company Act of 1940 senior fraud