[Congressional Record Volume 146, Number 140 (Monday, October 30, 2000)]
[House]
[Pages H11583-H11584]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1530
                   PROTECTING SENIORS FROM FRAUD ACT

  Mr. BACHUS. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 3164) to protect seniors from fraud.
  The Clerk read as follows:

                                S. 3164

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Protecting Seniors From 
     Fraud Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Older Americans are among the most rapidly growing 
     segments of our society.
       (2) Our Nation's elderly are too frequently the victims of 
     violent crime, property crime, and consumer and telemarketing 
     fraud.
       (3) The elderly are often targeted and retargeted in a 
     range of fraudulent schemes.
       (4) The TRIAD program, originally sponsored by the National 
     Sheriffs' Association, International Association of Chiefs of 
     Police, and the American Association of Retired Persons 
     unites sheriffs, police chiefs, senior volunteers, elder care 
     providers, families, and seniors to reduce the criminal 
     victimization of the elderly.
       (5) Congress should continue to support TRIAD and similar 
     community partnerships that improve the safety and quality of 
     life for millions of senior citizens.
       (6) There are few other community-based efforts that forge 
     partnerships to coordinate criminal justice and social 
     service resources to improve the safety and security of the 
     elderly.
       (7) According to the National Consumers League, 
     telemarketing fraud costs consumers nearly $40,000,000,000 
     each year.
       (8) Senior citizens are often the target of telemarketing 
     fraud.
       (9) Fraudulent telemarketers compile the names of consumers 
     who are potentially vulnerable to telemarketing fraud into 
     the so-called ``mooch lists''.
       (10) It is estimated that 56 percent of the names on such 
     ``mooch lists'' are individuals age 50 or older.
       (11) The Federal Bureau of Investigation and the Federal 
     Trade Commission have provided resources to assist private-
     sector organizations to operate outreach programs to warn 
     senior citizens whose names appear on confiscated ``mooch 
     lists''.
       (12) The Administration on Aging was formed, in part, to 
     provide senior citizens with the resources, information, and 
     assistance their special circumstances require.
       (13) The Administration on Aging has a system in place to 
     inform senior citizens of the dangers of telemarketing fraud.
       (14) Senior citizens need to be warned of the dangers of 
     telemarketing fraud before they become victims of such fraud.

     SEC. 3. SENIOR FRAUD PREVENTION PROGRAM.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Attorney General $1,000,000 for 
     each of the fiscal years 2001 through 2005 for programs for 
     the National Association of TRIAD.
       (b) Comptroller General.--The Comptroller General of the 
     United States shall submit to Congress a report on the 
     effectiveness of the TRIAD program 180 days prior to the 
     expiration of the authorization under this Act, including an 
     analysis of TRIAD programs and activities; identification of 
     impediments to the establishment of TRIADS across the Nation; 
     and recommendations to improve the effectiveness of the TRIAD 
     program.

     SEC. 4. DISSEMINATION OF INFORMATION.

       (a) In General.--The Secretary of Health and Human 
     Services, acting through the Assistant Secretary of Health 
     and Human Services for Aging, shall provide to the Attorney 
     General of each State and publicly disseminate in each State, 
     including dissemination to area agencies on aging, 
     information designed to educate senior citizens and raise 
     awareness about the dangers of fraud, including telemarketing 
     and sweepstakes fraud.
       (b) Information.--In carrying out subsection (a), the 
     Secretary shall--
       (1) inform senior citizens of the prevalence of 
     telemarketing and sweepstakes fraud targeted against them;
       (2) inform senior citizens how telemarketing and 
     sweepstakes fraud work;
       (3) inform senior citizens how to identify telemarketing 
     and sweepstakes fraud;
       (4) inform senior citizens how to protect themselves 
     against telemarketing and sweepstakes fraud, including an 
     explanation of the dangers of providing bank account, credit 
     card, or other financial or personal information over the 
     telephone to unsolicited callers;
       (5) inform senior citizens how to report suspected attempts 
     at or acts of fraud;
       (6) inform senior citizens of their consumer protection 
     rights under Federal law; and
       (7) provide such other information as the Secretary 
     considers necessary to protect senior citizens against 
     fraudulent telemarketing and sweepstakes promotions.
       (c) Means of Dissemination.--The Secretary shall determine 
     the means to disseminate information under this section. In 
     making such determination, the Secretary shall consider--
       (1) public service announcements;
       (2) a printed manual or pamphlet;
       (3) an Internet website;
       (4) direct mailings; and
       (5) telephone outreach to individuals whose names appear on 
     so-called ``mooch lists'' confiscated from fraudulent 
     marketers.
       (d) Priority.--In disseminating information under this 
     section, the Secretary shall give priority to areas with high 
     incidents of fraud against senior citizens.

     SEC. 5. STUDY OF CRIMES AGAINST SENIORS.

       (a) In General.--The Attorney General shall conduct a study 
     relating to crimes against seniors, in order to assist in 
     developing new strategies to prevent and otherwise reduce the 
     incidence of those crimes.
       (b) Issues Addressed.--The study conducted under this 
     section shall include an analysis of--
       (1) the nature and type of crimes perpetrated against 
     seniors, with special focus on--
       (A) the most common types of crimes that affect seniors;
       (B) the nature and extent of telemarketing, sweepstakes, 
     and repair fraud against seniors; and
       (C) the nature and extent of financial and material fraud 
     targeted at seniors;
       (2) the risk factors associated with seniors who have been 
     victimized;
       (3) the manner in which the Federal and State criminal 
     justice systems respond to crimes against seniors;
       (4) the feasibility of States establishing and maintaining 
     a centralized computer database on the incidence of crimes 
     against seniors that will promote the uniform identification 
     and reporting of such crimes;
       (5) the effectiveness of damage awards in court actions and 
     other means by which seniors receive reimbursement and other 
     damages after fraud has been established; and
       (6) other effective ways to prevent or reduce the 
     occurrence of crimes against seniors.

     SEC. 6. INCLUSION OF SENIORS IN NATIONAL CRIME VICTIMIZATION 
                   SURVEY.

       Beginning not later than 2 years after the date of 
     enactment of this Act, as part of each National Crime 
     Victimization Survey, the Attorney General shall include 
     statistics relating to--
       (1) crimes targeting or disproportionately affecting 
     seniors;
       (2) crime risk factors for seniors, including the times and 
     locations at which crimes victimizing seniors are most likely 
     to occur; and
       (3) specific characteristics of the victims of crimes who 
     are seniors, including age, gender, race or ethnicity, and 
     socioeconomic status.

     SEC. 7. STATE AND LOCAL GOVERNMENT OUTREACH.

       It is the sense of Congress that State and local 
     governments should fully incorporate fraud avoidance 
     information and programs into programs that provide 
     assistance to the aging.

  The SPEAKER pro tempore (Mr. Barrett of Nebraska). Pursuant to the 
rule, the gentleman from Alabama (Mr. Bachus) and the gentleman from 
Virginia (Mr. Scott) each will control 20 minutes.
  The Chair recognizes the gentleman from Alabama (Mr. Bachus).


                             General Leave

  Mr. BACHUS. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and to include extraneous material on S. 3164.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Alabama?
  There was no objection.
  Mr. BACHUS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this is Senate bill 3164, titled ``Protecting Seniors 
From Fraud Act.'' It was introduced by Senators Evan Bayh and Rod Grams 
and passed the other body unanimously on October 25.
  The bill will provide funding to local programs that are a part of 
the National Association of TRIADs, a community policing program that 
partners

[[Page H11584]]

law enforcement agencies with senior citizen volunteers to help reduce 
fraud and other crime especially against the elderly. There are 725 
countries with TRIADs nationwide which help more than 16 million of our 
seniors.
  Mr. Speaker, American seniors are disproportionately victims of 
telemarketing and sweepstakes fraud. Even though Americans over the age 
of 50 account for only 27 percent of the United States population, they 
comprise 56 percent of the so-called ``mooch lists'' used by fraudulent 
telemarketers. Unfortunately, fraudulent telemarketers prey upon 
trusting seniors who by their nature are often trusting and 
compassionate individuals.
  As a result, seniors in our country lose approximately $14.8 billion, 
that is almost $15 billion, every year to fraudulent telemarketers.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SCOTT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of S. 3164, the Protecting Seniors 
From Fraud Act. I would have preferred to have seen the bill developed 
through the normal legislative process of hearings and markups at the 
committee level so that we could have judged more fully the need that 
we are seeking to address. However, I am prepared to support the bill 
since its primary function is to reauthorize funding for the TRIAD 
program, a proven community policing program that partners law 
enforcement agencies with senior volunteers to reduce crime and fraud 
amongst the elderly. The TRIAD program operates in 47 States and 725 
counties and assists over 16 million seniors nationwide.
  The bill also creates a clearinghouse for information to educate 
seniors about the dangers of fraud, including telemarketing and 
sweepstakes fraud. It requires the U.S. Attorney General to conduct a 
study of crimes against seniors.
  The bill requires the inclusion of seniors in the National Crime 
Victims Survey, and it encourages State and local governments to fully 
incorporate fraud avoidance information in their aging services 
programs.
  Seniors are often the target of telemarketing and sweepstakes fraud. 
There are over 140,000 telemarketing firms operating in the United 
States. The AARP estimates that about 10 percent of them, fully 14,000 
firms, use fraudulent practices.
  The FBI estimates that consumers lose about $40 billion a year to 
telemarketing fraud. The AARP estimates that while seniors make up 
about 27 percent of the United States population, they incur about 37 
percent of the $40 billion loss.
  Despite considerable efforts to address these issues in recent years, 
many seniors are still not aware of these problems and of their rights 
and protections against them. According to the AARP, Americans over 65 
are the least likely to know about Federal protections from fraud.
  Adopting this bill will allow us to continue the partnerships and 
cooperative efforts with seniors and with State and local governments 
to prevent and address senior fraud.
  I want to thank the gentleman from Alabama (Mr. Bachus) for his 
leadership on this bill. I urge my colleagues to support the bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. BACHUS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the crimes that the gentleman from Virginia (Mr. Scott) 
spoke about, these crimes which cost our elderly citizens $15 billion a 
year, many of them can be prevented if seniors are educated about their 
consumer rights and if they are informed about methods available to 
them to confirm the legitimacy of an investment or product offered to 
them over the telephone.
  According to a national survey, 70 percent of older fraud victims say 
it is difficult for them to identify when fraud is happening. Forty 
percent of older Americans say that they have difficulty distinguishing 
between a legitimate and a fraudulent telemarketing sales call.
  There is definitely a need to educate seniors about the dangers of 
fraud and how to avoid becoming a victim of fraud, and that is what 
this legislation attempts to do. It addresses this problem by 
authorizing a million dollars each year for 5 years to ensure the 
continuation of programs which try to educate seniors.
  The bill also requires the Secretary of Health and Human Services to 
disseminate information to seniors on fraud prevention through the area 
agencies on aging and other existing senior-focused programs.
  The bill continues a provision which would require the statistics 
concerning crime committed against seniors be included in the Annual 
Crime Victims Survey performed by the Department of Justice and would 
also require the Attorney General to conduct a specific study of crimes 
committed against seniors.
  In conclusion, let me say that protecting seniors from fraud is of 
great importance to all of us. Our senior population continues to grow 
as our population ages and more seniors are saving money for their 
retirement, and anything this body can do to help them protect their 
retirement income and retirement money is important.
  Our seniors deserve to know about those who would defraud them, and 
this program will help inform them of various schemes and devices used 
to defraud them. It has the strong support of the law enforcement 
community, bipartisan support.
  I urge all my colleagues to support this bipartisan legislation.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Alabama (Mr. Bachus) that the House suspend the rules 
and pass the Senate bill, S. 3164.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill was passed.
  A motion to reconsider was laid on the table.

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