[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

[[Page H6102]]

     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

[[Page H6103]]

fraud. This will be accomplished through an authorization to the FTC of 
$10 million per year from FY11 through FY15.

                              {time}  1420

  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

[[Page H6104]]

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.

                          ____________________