117 HR 1215 : Fraud and Scam Reduction Act
U.S. House of Representatives
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EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the Fraud and Scam Reduction Act
.(b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Title I—Preventing Consumer Scams Directed at SeniorsSec. 101. Short title.Sec. 102. Senior Scams Prevention Advisory Group.Title II—Senior Fraud Advisory OfficeSec. 201. Short title.Sec. 202. Office for the Prevention of Fraud Targeting Seniors.Title III—Budgetary EffectsSec. 301. Budgetary effects.<enum>I</enum><header>Preventing Consumer Scams Directed at Seniors</header><section display-inline="no-display-inline" commented="no" id="H86383283FBF74533B6FB025C9AC9E9B9"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Stop Senior Scams Act</short-title></quote>.</text></section><section commented="no" display-inline="no-display-inline" id="H335F315F669E4310B48D844C0370202F" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Senior Scams Prevention Advisory Group</header><subsection commented="no" display-inline="no-display-inline" id="H98DA189937A84EF69EF8DD9722E383C4"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">There is established a Senior Scams Prevention Advisory Group (referred to in this title as the <term>Advisory Group</term>).</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H2E2C10A283AC47939C2B32202F081D67"><enum>(b)</enum><header display-inline="yes-display-inline">Members</header><text display-inline="yes-display-inline">The Advisory Group shall be composed of stakeholders such as the following individuals or the designees of those individuals:</text><paragraph commented="no" display-inline="no-display-inline" id="H5195E7F4ED544176B9D4C9BF4A4505C8"><enum>(1)</enum><text display-inline="yes-display-inline">The Chairman of the Federal Trade Commission.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA7C376432E8542B695E88C0C00C0A2F4"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary of the Treasury.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE257C86F7AB7478DAD14D4ADA9DE2264"><enum>(3)</enum><text display-inline="yes-display-inline">The Attorney General.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB356E240633841D6B4C1BBAC751CD964"><enum>(4)</enum><text display-inline="yes-display-inline">The Director of the Bureau of Consumer Financial Protection.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H47BDC0DB791D4669A149A3F85AB63D8D"><enum>(5)</enum><text display-inline="yes-display-inline">Representatives from each of the following sectors, including trade associations, to be selected by the Federal Trade Commission:</text><subparagraph commented="no" display-inline="no-display-inline" id="H1F80882317AA4FCBBAD215D2F4584810"><enum>(A)</enum><text display-inline="yes-display-inline">Retail.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H315E863C2A1544439EBA6178F854A738"><enum>(B)</enum><text display-inline="yes-display-inline">Gift cards.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE5DB6CD2101C46AB9C9D238FE397BA0A"><enum>(C)</enum><text display-inline="yes-display-inline">Telecommunications.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED8A505FF26D4A3981522E21AAECF14F"><enum>(D)</enum><text display-inline="yes-display-inline">Wire-transfer services.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE22933D7E2D74345A882147D6C7256D9"><enum>(E)</enum><text display-inline="yes-display-inline">Senior peer advocates.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7AD9CAE2F3364EBF93C6B3E6E3BF683F"><enum>(F)</enum><text display-inline="yes-display-inline">Consumer advocacy organizations with efforts focused on preventing seniors from becoming the victims of scams.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2E44D916664A42D6A43D9856330C9870"><enum>(G)</enum><text display-inline="yes-display-inline">Financial services, including institutions that engage in digital currency.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H622108955BEF4DDD9E030C02B3925AE8"><enum>(H)</enum><text display-inline="yes-display-inline">Prepaid cards.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5C5AAB5C68B481EB01D581AE59EC56D"><enum>(6)</enum><text display-inline="yes-display-inline">A member of the Board of Governors of the Federal Reserve System.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB231DB3CE54F4FCE9C04DBAF0270FD51"><enum>(7)</enum><text display-inline="yes-display-inline">A prudential regulator, as defined in section 1002 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5481">12 U.S.C. 5481</external-xref>).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4A1597B79F404B13B6E596A663962CBF"><enum>(8)</enum><text display-inline="yes-display-inline">The Director of the Financial Crimes Enforcement Network.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H05C6BDF410AA42A686A5215CB3B9EAF9"><enum>(9)</enum><text display-inline="yes-display-inline">Any other Federal, State, or local agency, industry representative, consumer advocate, or entity, as determined by the Federal Trade Commission.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H823B041E2C28469BA7E72B55F916A641"><enum>(c)</enum><header display-inline="yes-display-inline">No compensation for members</header><text display-inline="yes-display-inline">A member of the Advisory Group shall serve without compensation in addition to any compensation received for the service of the member as an officer or employee of the United States, if applicable.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H4BA98F669F424BCFA855415BCEDBCC4C"><enum>(d)</enum><header display-inline="yes-display-inline">Duties</header><paragraph commented="no" display-inline="no-display-inline" id="HE89EF96E39F74CA2AC63D12D986603B5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Advisory Group shall—</text><subparagraph commented="no" display-inline="no-display-inline" id="H083B698A58F44FE3A3403803B310405C"><enum>(A)</enum><text display-inline="yes-display-inline">collect information on the existence, use, and success of educational materials and programs for retailers, financial services, and wire-transfer companies, which—</text><clause commented="no" display-inline="no-display-inline" id="HD81B3B89EEB54F94971C737457248F56"><enum>(i)</enum><text display-inline="yes-display-inline">may be used as a guide to educate employees on how to identify and prevent scams that affect seniors; and</text></clause><clause commented="no" display-inline="no-display-inline" id="HEDBC9D4C1A434F308DC0355DD6FD46EF"><enum>(ii)</enum><text display-inline="yes-display-inline">include—</text><subclause commented="no" display-inline="no-display-inline" id="HEB6FA940F18C4007A5D78F6797B18CCF"><enum>(I)</enum><text display-inline="yes-display-inline">useful information for retailers, financial services, and wire transfer companies for the purpose described in clause (i);</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H12CFFD702AAD4DA7AE06A309E92895C1"><enum>(II)</enum><text display-inline="yes-display-inline">training for employees on ways to identify and prevent senior scams;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H295D2D15818B4493958F46A2A792AF31"><enum>(III)</enum><text display-inline="yes-display-inline">best practices for keeping employees up to date on current scams;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H95D61B8C1032488785FBD81B67BECF04"><enum>(IV)</enum><text display-inline="yes-display-inline">the most effective signage and placement in retail locations to warn seniors about scammers’ use of gift cards, prepaid cards, and wire transfer services;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H828A09EFF6D2401CB933CA877A0FDAF5"><enum>(V)</enum><text display-inline="yes-display-inline">suggestions on effective collaborative community education campaigns;</text></subclause><subclause commented="no" display-inline="no-display-inline" id="HE1B26C9B7F174A27AEA94B2580986E2A"><enum>(VI)</enum><text display-inline="yes-display-inline">available technology to assist in identifying possible scams at the point of sale; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="HA48F0893064F4F3784762F347F2A8629"><enum>(VII)</enum><text display-inline="yes-display-inline">other information that would be helpful to retailers, wire transfer companies, financial institutions, and their employees as they work to prevent fraud affecting seniors; and</text></subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H96F461639EEE44C4ADAE8020407BB874"><enum>(B)</enum><text display-inline="yes-display-inline">based on the findings in subparagraph (A)—</text><clause commented="no" display-inline="no-display-inline" id="HEA513E9DA2DB40D883B8972BCF926E96"><enum>(i)</enum><text display-inline="yes-display-inline">identify inadequacies, omissions, or deficiencies in those educational materials and programs for the categories listed in subparagraph (A) and their execution in reaching employees to protect older adults; and</text></clause><clause commented="no" display-inline="no-display-inline" id="HCB6CD485C34943869E1080385923400C"><enum>(ii)</enum><text display-inline="yes-display-inline">create model materials, best practices guidance, or recommendations to fill those inadequacies, omissions, or deficiencies that may be used by industry and others to help protect older adults from scams.</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6CD331EB8F0E4EC6B8AD354400F6491B"><enum>(2)</enum><header display-inline="yes-display-inline">Encouraged use</header><text display-inline="yes-display-inline">The Chairman of the Federal Trade Commission shall—</text><subparagraph commented="no" display-inline="no-display-inline" id="H9BD9471765FD4E7B8065C7068AFB751A"><enum>(A)</enum><text display-inline="yes-display-inline">make the materials or guidance created by the Federal Trade Commission described in paragraph (1) publicly available; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD54C31F4DA25404B8484D18296D36886"><enum>(B)</enum><text display-inline="yes-display-inline">encourage the use and distribution of the materials created under this subsection to prevent scams affecting seniors by governmental agencies and the private sector.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1B71452DBDE04ADEBB9DDF2580EAF2C1"><enum>(e)</enum><header display-inline="yes-display-inline">Reports</header><text display-inline="yes-display-inline">Section 101(c)(2) of the Elder Abuse Prevention and Prosecution Act (<external-xref legal-doc="usc" parsable-cite="usc/34/21711">34 U.S.C. 21711(c)(2)</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="HD7AD23F36E3A4BAD84F21593D9CB19FF"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)(iv), by striking the period at the end and inserting a semicolon;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H065126D7F1B24E74AFB8E7A4C54FA6EE"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H210D069390444E75A3DFA24A8942E7D2"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="HE76638F9D97F4A698FF0409D2497017A" style="OLC"><subparagraph commented="no" display-inline="no-display-inline" id="HFD7C135CDB194E138E9184129B43660D"><enum>(C)</enum><text display-inline="yes-display-inline">with respect to the report by the Federal Trade Commission, in relevant years, including information on—</text><clause commented="no" display-inline="no-display-inline" id="HA633A74363C34357B201E43DF19AC458"><enum>(i)</enum><text display-inline="yes-display-inline">the newly created materials, guidance, or recommendations of the Senior Scams Prevention Advisory Group established under section 102 of the <short-title>Stop Senior Scams Act</short-title> and any relevant views or considerations made by members of the Advisory Group that were not included in the Advisory Group’s model materials or considered an official recommendation by the Advisory Group;</text></clause><clause commented="no" display-inline="no-display-inline" id="H7F2E0C053BED4644B67C3287B94FE54B"><enum>(ii)</enum><text display-inline="yes-display-inline">the Senior Scams Prevention Advisory Group’s findings about senior scams and industry educational materials and programs; and</text></clause><clause commented="no" display-inline="no-display-inline" id="H8B5A42CC65AA4C54AB9AC6F5AD1B1C34"><enum>(iii)</enum><text display-inline="yes-display-inline">any recommendations on ways stakeholders can continue to work together to reduce scams affecting seniors.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H99E1D06197F0447F80A72B517092C880" commented="no" display-inline="no-display-inline"><enum>(f)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">This title, and the amendments made by this title, ceases to be effective on the date that is 5 years after the date of enactment of this Act.</text></subsection></section><enum>II</enum><header>Senior Fraud Advisory Office</header><section id="H55DD02DECE8C4869B71F04F7A40A8A38"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Seniors Fraud Prevention Act of 2021</short-title></quote>.</text></section><section commented="no" display-inline="no-display-inline" id="HAB06586BFDA543D1A264715B4CDC3087" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Office for the Prevention of Fraud Targeting Seniors</header><subsection commented="no" display-inline="no-display-inline" id="H93ECDE33968B407FA0B1B48DEC76FE38"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of advisory office</header><text display-inline="yes-display-inline">The Federal Trade Commission shall establish an office within the Bureau of Consumer Protection for the purpose of advising the Commission on the prevention of fraud targeting seniors and to assist the Commission with the following:</text><paragraph commented="no" display-inline="no-display-inline" id="H7200AC0E89134D589F07D51911E1B94F"><enum>(1)</enum><header display-inline="yes-display-inline">Oversight</header><text display-inline="yes-display-inline">The advisory office shall monitor the market for mail, television, internet, telemarketing, and recorded message telephone call (hereinafter referred to as <quote>robocall</quote>) fraud targeting seniors and shall coordinate with other relevant agencies regarding the requirements of this section.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H14B4635227E145558DAA8FE97AB18F59"><enum>(2)</enum><header display-inline="yes-display-inline">Consumer education</header><text display-inline="yes-display-inline">The Commission through the advisory office shall, in consultation with the Attorney General, the Secretary of Health and Human Services, the Postmaster General, the Chief Postal Inspector for the United States Postal Inspection Service, and other relevant agencies—</text><subparagraph commented="no" display-inline="no-display-inline" id="HF7A1D9E7B9FF4BD4BC01935065F878FC"><enum>(A)</enum><text display-inline="yes-display-inline">disseminate to seniors and families and caregivers of seniors general information on mail, television, internet, telemarketing, and robocall fraud targeting seniors, including descriptions of the most common fraud schemes;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD4D6D8B29E0E45D384F3E15AADEC4E10"><enum>(B)</enum><text display-inline="yes-display-inline">disseminate to seniors and families and caregivers of seniors information on reporting complaints of fraud targeting seniors either to the national toll-free telephone number established by the Commission for reporting such complaints, or to the Consumer Sentinel Network, operated by the Commission, where such complaints will become immediately available to appropriate law enforcement agencies, including the Federal Bureau of Investigation and the attorneys general of the States;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2747E927666E414F816F2AC87DA3457F"><enum>(C)</enum><text display-inline="yes-display-inline">in response to a specific request about a particular entity or individual, provide publically available information of enforcement action taken by the Commission for mail, television, internet, telemarketing, and robocall fraud against such entity; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7073D515ADCC42CAB82C316C94CA8EC0"><enum>(D)</enum><text display-inline="yes-display-inline">maintain a website to serve as a resource for information for seniors and families and caregivers of seniors regarding mail, television, internet, telemarketing, robocall, and other identified fraud targeting seniors.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H728CC95B2BC04CAA80D834CBF531F681"><enum>(3)</enum><header display-inline="yes-display-inline">Complaints</header><text display-inline="yes-display-inline">The Commission through the advisory office shall, in consultation with the Attorney General, establish procedures to—</text><subparagraph commented="no" display-inline="no-display-inline" id="H2B50241769A24EC4A1E63A2848D47FDE"><enum>(A)</enum><text display-inline="yes-display-inline">log and acknowledge the receipt of complaints by individuals who believe they have been a victim of mail, television, internet, telemarketing, and robocall fraud in the Consumer Sentinel Network, and shall make those complaints immediately available to Federal, State, and local law enforcement authorities; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE0B7BEB7282407AADC461A20F68A9D2"><enum>(B)</enum><text display-inline="yes-display-inline">provide to individuals described in <internal-xref idref="H2B50241769A24EC4A1E63A2848D47FDE" legis-path="2.(a)(3)(A)">subparagraph (A)</internal-xref>, and to any other persons, specific and general information on mail, television, internet, telemarketing, and robocall fraud, including descriptions of the most common schemes using such methods of communication.</text></subparagraph></paragraph></subsection><subsection id="HD8DAD916A63D4C7A881F27818011E1DB" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header display-inline="yes-display-inline">Commencement</header><text display-inline="yes-display-inline">The Commission shall commence carrying out the requirements of this section not later than one year after the date of the enactment of this Act. </text></subsection></section><enum>III</enum><header>Budgetary Effects</header><section id="H74DECC6CCD6444839C4E04E17AF4827E"><enum>301.</enum><header>Budgetary effects</header><text display-inline="no-display-inline">The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled <quote>Budgetary Effects of PAYGO Legislation</quote> for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.</text></section>Passed the House of Representatives April 15, 2021.Cheryl L. Johnson,Clerk.