[Congressional Record Volume 156, Number 111 (Tuesday, July 27, 2010)]
[House]
[Pages H6101-H6104]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SENIOR FINANCIAL EMPOWERMENT ACT OF 2010
Mr. SCOTT of Virginia. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 3040) to prevent mail, telemarketing, and Internet
fraud targeting seniors in the United States, to promote efforts to
increase public awareness of the enormous impact that mail,
telemarketing, and Internet fraud have on seniors, to educate the
public, seniors, their families, and their caregivers about how to
identify and combat fraudulent activity, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3040
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 ``Senior Financial Empowerment
Act of 2010''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) The proportion of the population of the United States
age 60 years or older is predicted to drastically increase in
the next 30 years as more than 76,000,000 Baby Boomers
approach retirement and old age.
(2) It is estimated that between 500,000 and 5,000,000
seniors in the United States are abused, neglected, or
exploited each year.
(3) Abuse, neglect, and exploitation of seniors crosses
racial, social class, gender, and geographic lines.
(4) Each year millions of individuals in the United States
are victims of financial exploitation, including mail,
telemarketing, and Internet fraud. Many of those who fall
prey to such exploitation are seniors.
(5) It is difficult to estimate the prevalence of fraud
that targets seniors because cases are severely underreported
and national statistics on senior fraud do not exist.
(6) The Federal Bureau of Investigation notes that seniors
in the United States are less likely to report fraud because
they do not know to whom to report, they are ashamed to have
been a victim of fraud, or they do not know that they have
been a victim of fraud. In some cases, a senior who has been
a victim of fraud may not report the crime because he or she
is concerned that relatives may conclude that the senior no
longer has the mental capacity to take care of his or her own
financial affairs.
(7) According to a 2009 report by the MetLife Mature Market
Institute, the annual financial loss by victims of senior
financial abuse is estimated to be at least $2,600,000,000.
(8) Perpetrators of mail, telemarketing, and Internet fraud
frequently target seniors because seniors are often
vulnerable and trusting people.
(9) As victims of such fraudulent schemes, many seniors pay
a financial cost, having
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been robbed of their hard-earned life savings, and frequently
pay an emotional cost, losing their self-respect and dignity.
(10) Perpetrators of fraud targeting seniors often operate
outside the United States, reaching their victims through the
mail, telephone lines, and the Internet.
(11) The Deceptive Mail Prevention and Enforcement Act
increased the power of the United States Postal Service to
protect consumers against persons who use deceptive mailings,
such as those featuring games of chance, sweepstakes, skill
contests, and facsimile checks.
(12) During fiscal year 2007, Postal Inspection Service
analysts prepared more than 27,000 letters and informative
postcards in response to mail fraud complaints. During that
same year, postal inspectors investigated 2,909 mail fraud
cases in the United States and arrested 1,236 mail fraud
suspects, of whom 1,118 were convicted. Postal inspectors
also reported 162 telemarketing fraud investigations, with 83
arrests and 61 convictions resulting from such
investigations.
(13) In 2000, the United States Senate Special Committee on
Aging reported that consumers lose approximately
$40,000,000,000 each year to telemarketing fraud, and
estimated that approximately 10 percent of the Nation's
14,000 telemarketing firms were fraudulent. Some researchers
estimate that only one in 10,000 fraud victims reports the
crime to the authorities.
(14) A 2003 report by AARP found that, though the crime of
telemarketing fraud is grossly underreported among seniors
who have been victims of such fraud, seniors who are properly
counseled by trained peer volunteers are less likely to fall
victim to fraudulent practices.
(15) The Federal Bureau of Investigation reports that the
threat of fraud to seniors is growing and changing. This is
largely due to the fact that many younger Baby Boomers have
considerable computer skills and criminals have responded by
targeting seniors through online scams like phishing and
email spamming, in addition to traditional telephone calls
and mass mailings.
(16) The Internet Crime Complaint Center (hereinafter
referred to in this paragraph as ``IC3'') is a partnership
between the National White Collar Crime Center and the
Federal Bureau of Investigation that serves as a vehicle to
receive, develop, and refer criminal complaints regarding
cybercrime. The IC3 processed more than 219,553 complaints of
Internet crime in 2007. From these submissions, the IC3
referred 90,008 complaints of Internet crime, representing a
total dollar loss of $239,090,000, to Federal, State, and
local law enforcement agencies in the United States for
further consideration.
(17) Consumer awareness is the best protection from fraud.
SEC. 3. CENTRALIZED SERVICE FOR CONSUMER EDUCATION ON MAIL,
TELEMARKETING, AND INTERNET FRAUD TARGETING
SENIORS.
(a) Centralized Service.--
(1) Requirement.--The Federal Trade Commission, after
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 the Director of the Bureau of Consumer Financial
Protection, shall--
(A) periodically disseminate to seniors, and families and
caregivers of seniors, general information on mail,
telemarketing, and Internet fraud targeting seniors,
including descriptions of the most common fraud schemes;
(B) periodically disseminate to seniors, and families and
caregivers of seniors, information on methods available to
report fraud targeting seniors, such as--
(i) referring complaints to law enforcement agencies,
including the Director of the Federal Bureau of Investigation
and State attorneys general; and
(ii) calling a national toll-free telephone number
established by the Federal Trade Commission for reporting
mail, telemarketing, and Internet fraud;
(C) in response to a specific request by a party to the
Federal Trade Commission inquiring about any history of fraud
committed by a particular entity or individual, provide to
such party any publically available information on any record
of law enforcement action for fraud against such entity or
individual--
(i) by the Federal Trade Commission; and
(ii) by any other agency that reports such actions to the
Federal Trade Commission; and
(D) maintain a website to serve as a resource for
information for seniors, and families and caregivers of
seniors, regarding mail, telemarketing, and Internet fraud
targeting seniors.
(2) Procedures and commencement.--The Federal Trade
Commission shall establish and implement procedures to carry
out the requirements of paragraph (1), including procedures--
(A) with respect to the frequency and mode of dissemination
of information under subparagraphs (A) and (B) of such
paragraph; and
(B) that provide for the implementation of the requirements
of such paragraph not later than one year after the date of
the enactment of this Act.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of the fiscal years 2011 through 2015.
SEC. 4. GRANTS TO PREVENT MAIL, TELEMARKETING, AND INTERNET
FRAUD.
(a) Grant Program Authorized.--Subject to the availability
of funds authorized to be appropriated under this section,
the Attorney General, after consultation with the Secretary
of Health and Human Services, the Postmaster General, the
Chief Postal Inspector for the United States Postal
Inspection Service, and the Director of the Bureau of
Consumer Financial Protection, shall establish and administer
a competitive grant program to award grants to eligible
organizations to carry out mail, telemarketing, and Internet
fraud prevention education programs for seniors.
(b) Eligible Organizations.--The Attorney General may award
grants under this section to State Attorneys General, State
and local law enforcement agencies and groups, senior
centers, and other local nonprofit organizations that provide
assistance to seniors, as determined by the Attorney General.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of the fiscal years 2011 through 2015.
SEC. 5. SENSE OF THE CONGRESS RELATED TO NATIONAL SENIOR
FRAUD AWARENESS WEEK.
It is the sense of the Congress that--
(1) there is a need to increase public awareness of the
enormous impact that mail, telemarketing, and Internet fraud
have on senior citizens in the United States;
(2) a week in the month of May should be designated as
``National Senior Fraud Awareness Week'';
(3) the people of the United States should observe National
Senior Fraud Awareness Week with appropriate educational
activities; and
(4) the President is encouraged to issue a proclamation
supporting increased public awareness of the impact of, and
the need to prevent, fraud committed against seniors.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Virginia (Mr. Scott) and the gentleman from Florida (Mr. Rooney) each
will control 20 minutes.
The Chair recognizes the gentleman from Virginia.
General Leave
Mr. SCOTT of Virginia. Mr. Speaker, I ask unanimous consent that all
Members have 5 legislative days to revise and extend their remarks and
include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Virginia?
There was no objection.
Mr. SCOTT of Virginia. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, H.R. 3040 was introduced to address the need to educate
and inform the public of the predatory practices of unscrupulous
individuals who prey upon the vulnerabilities of our senior citizens.
Ours is an aging society. The U.S. Census Bureau tells us the
following: in 2006, the year in which the first baby boomers began
turning 60, persons age 60 and older compromised almost 17 percent of
the population. By 2030, it is estimated that the 60-plus population
will compromise nearly 25 percent of the U.S. population, and the
number of people older than 65 will exceed 71 million, double the
number in just 2000.
The oldest segment of our population owns the largest portion of
wealth in the United States, and too often seniors have become a very
enticing target to those who would seek to defraud them of their life
savings. Although we currently lack national reporting mechanisms for
tracking financial exploitation of elders, there is no doubt that we've
got a real problem in this country. With the present state of the
economy, older Americans are at greater risk of having their financial
security threatened and disrupted.
Fraud perpetrated against seniors is a crime that they very often are
incapable of recovering from because they don't have enough years left,
so it's a matter of urgency. This bill, H.R. 3040, when enacted into
law, will be part of the continuing effort to curb the rapidly growing
problem of the victimization of senior citizens via telemarketing,
mail, and Internet fraud through public awareness, education, and
prevention.
It will accomplish this by creating a centralized service for
consumer education on mail, telemarketing, and Internet fraud targeting
seniors. It will direct the Federal Trade Commission to disseminate
information on mail, telemarketing, and Internet fraud. It will provide
means of referring complaints of fraud to appropriate law enforcement
agencies. It will direct the FTC to establish a Web site to serve as a
resource for seniors on financial
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fraud. This will be accomplished through an authorization to the FTC of
$10 million per year from FY11 through FY15.
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H.R. 3040 will also authorize $20 million a year from fiscal year
2011 through fiscal year 2015 for the Attorney General to establish and
administer a competitive grant program to award grants to eligible
organizations to carry out locally focused mail, telemarketing, and
Internet fraud prevention and education programs for seniors.
Finally, the bill declares a sense of the Congress related to
National Senior Fraud Awareness Week, and declares that a week in the
month of May, Elder Abuse Awareness Month, should be designated as
``National Senior Fraud Awareness Week.'' It also encourages the
President to issue a proclamation supporting increased public
awareness.
I want to thank the gentlewoman from Wisconsin for her leadership on
this bill, and for those reasons, I urge my colleagues to support the
bill.
I reserve the balance of my time.
Mr. ROONEY. I yield myself such time as I may consume.
Mr. Speaker, crimes against the elderly are a serious growing problem
in America. Senior citizens are often the victims of abuse and neglect.
Experts estimate that as many as 2 million older Americans are the
victims of physical and psychological abuse every year. They are also
the victims of financial crimes, including telemarketing fraud and
identity theft.
The FBI reports that older Americans are prime targets for financial
fraud because they are more likely to have nest eggs, own their homes,
and have excellent credit. Seniors are more vulnerable to fraud schemes
because they are less likely to report fraud or are ashamed of having
been scammed or do not realize that they have been scammed.
These types of fraud are both creative and difficult to detect.
Criminals will offer just about anything in an effort to defraud
elderly victims--from counterfeit drugs, to health insurance, to anti-
aging products, and even funeral services. Additionally, email scams
have become more and more common.
In my home State of Florida, Attorney General Bill McCollum's office
reports that, in 2009, it received over 13,000 consumer fraud
complaints from residents over the age of 60. The number of complaints
has doubled since the previous year and has increased six-fold since
2006.
Congress must address the rising incidence of fraud and scams that
endanger our Nation's seniors. I am pleased to support H.R. 3040, the
Senior Financial Empowerment Act, which is cosponsored by my colleagues
Congresswoman Baldwin, Chairman Conyers, Ranking Member Smith, Chairman
Scott, and Ranking Member Gohmert.
This legislation aims to do just what the title promises--to empower
older Americans to protect themselves from seemingly harmless but
devastating financial fraud schemes. The bill directs the Federal Trade
Commission to provide tips to seniors on how best to safeguard
themselves against fraud, and the bill directs the FTC to educate
victims on how to report fraud to law enforcement authorities. Just
learning simple steps, like shredding our billing statements, can help
anyone prevent identity theft.
Today's seniors need to be empowered to protect themselves from the
Internet, email, and telephone schemes. H.R. 3040 will help them
achieve this goal. I urge my colleagues to support this legislation.
I reserve the balance of my time.
Mr. SCOTT of Virginia. Mr. Speaker, I yield such time as she may
consume to the sponsor of the bill, a great advocate for seniors and a
member of the Judiciary Committee, the gentlewoman from Wisconsin (Ms.
Baldwin).
Ms. BALDWIN. Thank you, Chairman Scott, for yielding the time.
Mr. Speaker, I rise today in strong support of H.R. 3040, the Senior
Financial Empowerment Act of 2009.
My own experience as the primary caregiver for my grandmother opened
my eyes to some troubling exploitative tactics targeted at America's
seniors. Growing up in Wisconsin, I was raised by my maternal
grandparents. Though I went east for college, I returned to my
hometown, Madison, after graduation to be there for my grandmother, who
by then was widowed and who had sacrificed so much of her own time and
energy to raise me. Eventually, I became my grandmother's primary
caregiver.
Around the time that my grandmother turned 90 years old, she asked me
to help her sort through her mail and balance her checkbook. Now,
first, I was struck by the sheer volume of solicitations she was
getting. I was also shocked by how many were fly-by-night organizations
or ``look alike'' charities that were writing her on a monthly basis.
Their pleas for donations looked and sounded legitimate, but I had my
suspicions, so I started digging a little bit deeper.
I was also disturbed by the amount of money my grandmother had been
giving to some of these entities. She believed that those who were able
to do so ought to be as generous as possible to those in need, but she
had no way of determining the legitimacy of the entities that were
contacting her and soliciting her so regularly.
That experience opened my eyes to the very real exploitation of
seniors, like my grandmother, through the mail, telephone, and
Internet. Millions of Americans become victims of similar financial
exploitation each year, but it is not just the isolated and lonely who
may fall prey to these scams. One only need read one's local newspaper
in order to hear how widespread this really is.
In my home district in Wisconsin, over the years, we have seen all
sorts of scams. One reads of ongoing reports about ``notch baby''
schemes in which Social Security beneficiaries born between the years
1917 and 1921 are asked to send money to organizations that promise to
change the Federal laws to increase their benefits. These organizations
go so far as to ask these seniors whether they would like their Federal
money in a lump sum or in monthly payments.
Earlier this year, The Capital Times newspaper in Madison, Wisconsin,
reported that an 84-year-old Madison woman was duped out of nearly
$3,000 after a phone scammer convinced her that her ``granddaughter's
boyfriend'' was in a Canadian jail and needed bail money. Madison
police reported that she received a phone call from the man, who called
her ``Grandma,'' and he told her he was in a Canadian jail after being
picked up for drunk driving. To convince the elderly woman, ``Officer
Jacob Harris'' came on the line and convinced her of the need for bail
money for her ``granddaughter's boyfriend.'' This elderly woman wired
the money, and fell victim to a disturbingly common scam.
I also read that, not days after President Obama signed the historic
health care reform bill into law, fraudsters were figuring out how to
scam seniors. A cable TV advertisement exhorted viewers to call an 800
number so that they wouldn't miss a limited enrollment period to obtain
coverage. We all know that there was no limited enrollment period for
any coverage in the health care legislation that we passed.
Though we all have read and heard these anecdotal stories, it is
difficult to estimate the prevalence of financial exploitation cases
due to severe underreporting. According to a 2009 report by Met Life
Mature Market Institute, for every case of abuse reported, there are an
estimated four or more that go unreported. We do know some facts,
though. This same study found that the annual financial loss by victims
of senior financial abuse is estimated to be at least $2.6 billion.
In my home State of Wisconsin, the Coalition of Wisconsin Aging
Groups estimates that 35,000 seniors in Wisconsin alone were the
victims of financial exploitation last year. The Wisconsin Department
of Financial Institutions reports that half of their cases now being
investigated include older victims.
On a national level, postal inspectors investigated almost 3,000 mail
fraud cases in the U.S., and they arrested more than 1,200 mail fraud
suspects in 2007 alone. Further, the FBI has confirmed that criminals
are modifying their targeting techniques to include online scams, such
as phishing and email spamming.
Given the prevalence of financial fraud targeting seniors,
Congressman Howard Coble and I introduced the Senior Financial
Empowerment Act
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with a very specific goal in mind--to empower seniors and to end the
abuse, neglect, and exploitation of America's elders. The bill builds
on the good work already being done by the Federal Trade Commission and
by the U.S. Department of Justice, and it seeks to empower these
agencies to support local and State efforts to combat financial fraud
and to empower our seniors.
I would like to extend a special thanks to my colleague Howard Coble
from North Carolina for his leadership on this issue. It has been a
pleasure working with him to advance this legislation.
I also want to thank Chairman Scott, Chairman Conyers, and Ranking
Members Gohmert and Smith for their longstanding commitment to
America's seniors.
{time} 1430
Mr. Speaker, when I saw my grandmother go through the last years of
her life, and what she went through with these solicitations, I made a
pledge to make sure that all older Americans have the tools that they
need to protect themselves against financial crimes and fraud. I urge
support for the Senior Financial Empowerment Act.
Mr. ROONEY. Mr. Speaker, I yield back the balance of my time.
Mr. SCOTT of Virginia. Mr. Speaker, I want to thank the gentlewoman
from Wisconsin (Ms. Baldwin) for her leadership on this bill, as well
as the gentleman from North Carolina (Mr. Coble). This important
legislation will protect a lot of seniors, and I would hope that we
would pass the bill.
I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Virginia (Mr. Scott) that the House suspend the rules
and pass the bill, H.R. 3040, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. SCOTT of Virginia. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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