[Congressional Record Volume 165, Number 70 (Tuesday, April 30, 2019)]
[House]
[Pages H3316-H3318]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUPPORTING THE PROTECTION OF ELDERS THROUGH FINANCIAL LITERACY
Mr. FOSTER. Madam Speaker, I move to suspend the rules and agree to
the resolution (H. Res. 328) supporting the protection of elders
through financial literacy.
The Clerk read the title of the resolution.
The text of the resolution is as follows:
H. Res. 328
Whereas in the context of the financial exploitation of the
elderly, Federal statute defines ``exploitation'' as ``the
fraudulent or otherwise illegal, unauthorized, or improper
act or process of an individual, including a caregiver or
fiduciary, that uses the resources of an elder for monetary
or personal benefit, profit, or gain, or that results in
depriving an elder of rightful access to, or use of,
benefits, resources, belongings, or assets'' (42 U.S.C.
1397j(8)) (``Elder Financial Exploitation'');
Whereas the National Adult Protective Services Association
has stated, ``Elder abuse is vastly under-reported; only one
in 44 cases of financial abuse is ever reported'';
Whereas Elder Financial Exploitation is expected to
increase in the upcoming years as 10,000 baby boomers are
turning 65 each day;
Whereas estimates by the Investor Protection Trust suggest
that as many as one of five citizens over the age of 65 are
victims of the theft of money, property, identity or
belongings;
Whereas according to the National Center on Aging, ``Up to
5 million older Americans are abused every year, and the
annual loss by victims of financial abuse is estimated to be
at least $36.5 billion.'';
Whereas older adults are targeted for Elder Financial
Exploitation through schemes such as fraud by trusted family,
caregivers, and fiduciaries, and through scams by strangers
often committed by international criminal networks;
Whereas common schemes by fraudsters and scammers include,
lottery and sweepstakes scams, telemarketing scams, home-
repair scams, computer-repair scams, investment scams,
internet phishing scams, abuse of fiduciary authority, and
identity theft;
Whereas Financial Literacy Month aims to highlight for all
Americans the importance of establishing and maintaining
healthy financial habits;
Whereas education about healthy financial habits includes
the protection of one's finances from financial exploitation,
especially for older adults who are vulnerable to targeted
frauds and scams;
Whereas to combat this serious financial concern and to
protect the elder community, this education must also extend
to financial institutions, law enforcement, and regulatory
agencies so they may work together to understand and detect
these frauds and scams;
Whereas these partnerships include not only Federal
agencies, but also State, local, and Tribal authorities such
as law enforcement and adult protective services agencies;
Whereas the Financial Crimes Enforcement Network (FinCEN)
is vital to the pursuit of these bad actors, collecting
suspicious activity report (SAR) information and sharing, as
necessary, its data, analysis, and guidance with appropriate
public- and private-sector partners focused on detecting and
ending Elder Financial Exploitation;
Whereas FinCEN, working with Federal consumer and law
enforcement partners engages with financial institutions and
State and local authorities to educate on the signs of Elder
Financial Exploitation;
Whereas FinCEN, the Consumer Financial Protection Bureau,
and the Department of Justice issued in 2017 a joint
memorandum to provide information on the use of SARs in the
investigation of Elder Financial Exploitation, building on a
2011 Advisory that identified red flags for detection; and
Whereas despite the broad efforts by law enforcement,
regulatory agencies, financial institutions, and private
sector organizations to educate and share information, Elder
Financial Exploitation persists as a multi-billion dollar
industry, more can be done: Now, therefore, be it
Resolved, That the House of Representatives--
[[Page H3317]]
(1) supports the goals of Financial Literacy Month to raise
public awareness about--
(A) the importance of personal financial education in the
United States; and
(B) the serious consequences that may result from a lack of
understanding about personal finances;
(2) acknowledges that raising awareness of threats to
personal finances, especially for vulnerable, targeted
populations like older adults and their relatives and
caregivers, is only one party of financial literacy;
(3) understands that to combat Elder Financial
Exploitation, it is also necessary to encourage continued
education and collaboration among law enforcement, financial
institutions, regulatory agencies, and private sector
organizations allowing detection, prevention, reporting, and
investigation of these crimes;
(4) supports work being done by FinCEN and its partners to
educate the stakeholders which serve and protect America's
elder community;
(5) urges continued public-private partnership and
appropriate information sharing to prevent, detect, report,
and investigate Elder Financial Exploitation; and
(6) urges action to assist with remediation and reporting,
as well as prevention and detection to have best possible
data, feedback, and incident response.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Foster) and the gentleman from Arkansas (Mr. Hill) each
will control 20 minutes.
The Chair recognizes the gentleman from Illinois.
general leave
Mr. FOSTER. Madam Speaker, I ask unanimous consent that all Members
have 5 legislative days within which to revise and extend their remarks
on this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. FOSTER. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I am proud to support H. Res. 328, a resolution
introduced by Congressman Casten of Illinois and Congressman Rose of
Tennessee.
This bipartisan resolution acknowledges an important component of
financial literacy, and it is raising awareness of threats to personal
finances, especially for vulnerable targeted populations such as older
adults. It also encourages continued public-private partnerships and
information sharing to effectively prevent, detect, report, and
investigate elder financial exploitation.
As we have heard, the baby boomer generation is getting older; 10,000
of them are turning 65 each day. According to the National Center on
Aging, up to 5 million older Americans are abused every year, and the
annual loss by victims of financial abuse is estimated to be at least
$36.5 billion. That is why we need to be proactive about combating this
serious problem on multiple fronts.
We should work to arm our senior citizens with the knowledge they
need to effectively detect and prevent financial exploitation by would-
be criminals. Understanding the red flags and warning signs to look for
is important first step.
In addition, we should continue to support efforts by FinCEN and
other regulatory and law enforcement agencies to ensure that
information at the disposal of these agencies is used to better deter
and respond to incidents of elder financial exploitation.
Efforts like H. Res. 328, together with the Senior Security Act of
2019 and the Senior Safe Act of 2018, show Congress' commitment to
supporting our Nation's senior citizens on a bipartisan basis. It also
shows our commitment to encouraging collaboration, public-private
partnerships, and information sharing in order to effectively combat
financial exploitation of senior citizens.
Madam Speaker, for these reasons, I want to thank the gentleman from
Illinois (Mr. Casten) and the gentleman from Tennessee (Mr. John W.
Rose) for bringing this bipartisan initiative forward, and I urge all
Members to vote ``yes.''
Madam Speaker, I reserve the balance of my time.
Mr. HILL of Arkansas. Madam Speaker, I yield myself such time as I
may consume.
Madam Speaker, I rise in support of H. Res. 328, Supporting the
Protection of Elders Through Financial Literacy. This collaboration by
Mr. Casten of Illinois and Mr. Rose of Tennessee is, again, an
important bipartisan effort to focus on financial literacy during
Financial Literacy Month as well as to call attention to the challenges
that we have in making sure that our senior Americans are taken care of
and their financial well-being.
According to research conducted by the AARP Public Policy Institute,
one in five older Americans is a victim of financial exploitation each
year. These victims lose up to $3 billion annually, or more than
$120,000 per victim, which is more than most Americans have in their
entire retirement savings.
Sadly, only 1 in 44 cases is reported. That is the challenge that we
have talked about here this afternoon, that we make sure that that
reporting is identified so that restitution can be made.
I am proud of the work the Congress did on the Senior Safe Act,
legislation that originated in the Financial Services Committee and was
ultimately signed into law last year. That legislation took an
important step in offering greater financial protection to seniors by
encouraging financial institutions, investment advisers, and brokers to
report suspected fraud or elder abuse to law enforcement--a good step.
This resolution we are now discussing also complements the fine work
of Mr. Gottheimer and Mr. Hollingsworth for their work on the Senior
Security Act.
Prevention is the best solution. More can and should be done to
educate seniors and all Americans on healthy financial habits and
protection against financial exploitation.
The unfortunate reality is that seniors can be especially vulnerable
to financial fraud, as outlined by Mr. Gottheimer and Mr.
Hollingsworth. Even according to the SEC's own report in 2018, ``Elder
Financial Exploitation,'' it is attributed to cognitive decline and
wealth held by older generations.
We must work together to ensure that bad actors don't take advantage
of this population. These crimes range from complex scams to the all-
too-common case of someone close to an elderly person tricking them
into signing away money that they had saved for retirement. It is this
last type of exploitation that is especially troubling.
{time} 1300
As I referenced a few minutes ago, people in a position of trust:
lawyers, CPAs, financial advisers.
H. Res. 328 highlights the importance of educating the elderly about
healthy financial habits that include protecting one's finances from
financial exploitation. You can't take it for granted that we know
better than to finance a child's entrapment in Mexico or that you are
going to help a Nigerian prince. It sounds farfetched. But it happens
every single day across this country, and education is the best form of
prevention.
I think we can all agree that the status quo is not enough. H. Res.
328 raises much-needed public awareness for the importance of personal
financial education for the elderly and highlights the collaboration
between banks, law enforcement, and financial advisers to protect older
generations.
For those reasons, I congratulate and thank my friends,
Representatives Casten and Rose, for their good work.
Madam Speaker, I yield such time as he may consume to the gentleman
from Tennessee (Mr. John W. Rose), the Republican author of this
measure.
Mr. JOHN W. ROSE of Tennessee. Madam Speaker, I rise in support of H.
Res. 328.
I applaud my colleague, Mr. Casten, for his thoughtful leadership on
this initiative.
For too long, the financial exploitation of our seniors has been
swept under the rug. It is truly heartbreaking to hear stories of
Tennesseans' parents, siblings, and friends being taken advantage of,
often by those they trust the most. It is time to equip our friends,
families, and neighbors with the knowledge and tools they need to guard
against the heartbreak of their hard-earned security and stability
being stolen in the golden years of life.
Age brings many of life's most difficult challenges, but financial
exploitation should not be one of them. It is incumbent upon us to
correct this injustice and encourage the many community partnerships
which work to do the same, including the work of our
[[Page H3318]]
men and women in law enforcement, various nonprofit organizations, and
affiliated regulatory agencies.
Scammers and deceivers hurt good folks across the Sixth District of
Tennessee and across America.
My esteemed colleague from Illinois (Mr. Casten) and I urge our
fellow Members to join us in standing against this despicable injustice
plaguing our country.
Mr. FOSTER. Madam Speaker, I yield 5 minutes to the gentleman from
Illinois (Mr. Casten), the co-author of this legislation.
Mr. CASTEN of Illinois. Madam Speaker, I rise today in support of H.
Res. 328.
I thank Representative Rose for working on this resolution with me in
a bipartisan manner, as well as Chair Waters and her staff for their
commitment to seniors and financial literacy.
H. Res. 328 supports the security of seniors through the promotion of
financial literacy. This resolution supports the critical public-
private partnerships that enable collaboration among law enforcement,
financial institutions, and regulatory agencies to expand financial
literacy and to detect fraud and scams against seniors.
America's seniors have worked hard to raise families, pay their
taxes, protect our country, and build our communities. They have
scraped and saved to ensure their financial futures.
Ten thousand baby boomers are turning 65 every day and, by 2030, the
number of Americans aged 65 and older will more than double to 71
million, or about 20 percent of the United States population.
These older Americans, who have given so much, are increasingly being
targeted for financial exploitation. And in this digital age, with
personal information so easily procured, the scams are only getting
more complex and harder to detect. We cannot stand by and let our
parents and grandparents continue to be ripped off by increasingly
savvy con artists.
What would this resolution do?
It would support the goals of Financial Literacy Month to raise
public awareness about the importance of personal financial education
in the United States;
It would acknowledge that raising awareness of threats to personal
finances, especially for populations like older adults and their
relatives and caregivers, is only one part of financial literacy;
It would recognize that to combat elder financial exploitation, it is
also necessary to encourage continued collaboration among law
enforcement, financial institutions, regulatory agencies, and private
sector organizations to allow the detection, prevention, reporting, and
investigation of those crimes;
It would support work being done by FinCEN, the Financial Crimes
Enforcement Network, and its partners to educate the stakeholders that
serve and protect America's elder community;
It would urge continued public-private partnership and appropriate
information sharing to prevent, detect, report, and investigate elder
financial exploitation; and
Finally, it would urge action to assist with remediation and
reporting, as well as prevention and detection to have the best
possible data, feedback, and incident response.
The path to economic security begins with basic money management. But
in an increasingly complex financial landscape, we cannot limit our
focus on financial literacy only at the level of individuals and
caregivers. We must also include financial institutions, law
enforcement, and regulatory agencies so that they can work together to
understand and detect these frauds and scams.
Financial exploitation can be devastating. Studies have shown that
seniors who suffer from abuse, neglect, or exploitation are three times
more likely to die than their counterparts.
Adding to this devastation--and this is painful, but we have to admit
it--is the exploitation is often committed by family members, by
trusted friends, or by caregivers. Financial abuse often occurs with
the implied acknowledgement and/or consent of the elder person and
therefore can be much more difficult to detect or to prove.
Employees within the financial services industry may often be the
first to detect those changes in the behaviors of customers with whom
they have regular contact. That frontline relationship places
institutions in a unique position to assist to protect customers,
upholding the inherent trust relationship with their clients.
In acknowledging this role, FinCEN issued an advisory to financial
institutions on filing suspicious activity reports regarding elder
financial exploitation that would provide red flag indicators and
instructions on how to report elder financial exploitation through
suspicious activity reports.
Timely reporting of suspicious elder financial exploitation activity
is critical to engaging entities that may have complementary
information on the victim or the perpetrator and may be well positioned
to collaborate or investigations.
Madam Speaker, I urge my colleagues to support H. Res. 328,
supporting efforts to combat elder financial exploitation.
Mr. HILL of Arkansas. Madam Speaker, I yield myself the balance of my
time.
Madam Speaker, in closing, this has been a good afternoon on a
bipartisan basis to talk about the importance of financial literacy. It
is something we all try to practice what we preach. We try to encourage
a broad sense of partnership between the regulators, our financial
services firms, the AARP, our schools, and other people to enhance
financial literacy from adolescence to elder years. And I think about
what we have heard today on what we are trying to protect our
constituents from through education: internet scams, Nigerian princes'
schemes, violators from a trusted person.
And then I thought back, just sitting here, Madam Speaker, of my own
in-laws, now deceased about 7 years--one with Alzheimer's and one just
old-age infirmities--and cleaning up all the sweepstakes applications
that they had received and sent money to in those final years of their
life.
I thank my friends, led by Dr. Foster and others. I congratulate
Representative Casten and Representative Rose on this particular
measure, H. Res. 328. I urge all of my colleagues to support it, and I
yield back the balance of my time.
Mr. FOSTER. Madam Speaker, I yield myself the balance of my time.
Madam Speaker, I want to again congratulate Mr. Casten and Mr. Rose
for having brought this resolution to the floor. I urge my colleagues
to join us in supporting this important resolution to empower senior
citizens and promote public-private partnerships in order to strengthen
our enforcement against crimes of financial exploitation, and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Illinois (Mr. Foster) that the House suspend the rules
and agree to the resolution, H. Res. 328.
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. FOSTER. Madam 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, further
proceedings on this motion will be postponed.
____________________