A piece of legislation is currently making its way through Congress with a noble goal: to put up a stronger defense against financial fraud targeting the elderly and other vulnerable groups. The proposed bill is a beacon of hope for preventing the heartache and loss associated with financial exploitation, particularly for those aged 65 and over, as well as younger individuals with impairments.
Here’s the crux of the proposed law: It would empower investment entities like mutual funds and ETFs to pause transactions that smell fishy—specifically those that seem to prey on investors due to their age or impairments. This pause could last up to 25 days, giving time for a closer look to ensure the transaction is legitimate.
The proposal is riding the tailwinds of unanimous bipartisan support in the House and now waits in the wings of the Senate Banking Committee. While it’s a reprise of a similar bill that didn’t quite cross the finish line in the Senate previously, the need for such protections is as pressing as ever.
Financial exploitation is no small matter, with older adults facing an estimated $3 billion yearly toll. To put that into perspective, the average loss per fraud incident rings in at a staggering $120,000. And it’s not just strangers who are taking advantage; often, family members are the culprits, with those suffering from cognitive challenges being particularly at risk.
As the financial sector wakes up to the scale of this issue, especially in an era where transactions are increasingly virtual, the hope is that this bill will offer a much-needed shield, protecting the hard-earned savings of some of our most at-risk citizens.
