[Congressional Record Volume 167, Number 64 (Wednesday, April 14, 2021)]
[House]
[Pages H1756-H1758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      FRAUD AND SCAM REDUCTION ACT

  Mr. PALLONE. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1215) to establish an office within the Federal Trade 
Commission and an outside advisory group to prevent fraud targeting 
seniors and to direct the Commission to include additional information 
in an annual report to Congress on fraud targeting seniors, and for 
other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1215

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Fraud and 
     Scam Reduction Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

         TITLE I--PREVENTING CONSUMER SCAMS DIRECTED AT SENIORS

Sec. 101. Short title.
Sec. 102. Senior Scams Prevention Advisory Group.

                 TITLE II--SENIOR FRAUD ADVISORY OFFICE

Sec. 201. Short title.
Sec. 202. Office for the Prevention of Fraud Targeting Seniors.

                      TITLE III--BUDGETARY EFFECTS

Sec. 301. Budgetary effects.

         TITLE I--PREVENTING CONSUMER SCAMS DIRECTED AT SENIORS

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Stop Senior Scams Act''.

     SEC. 102. SENIOR SCAMS PREVENTION ADVISORY GROUP.

       (a) Establishment.--There is established a Senior Scams 
     Prevention Advisory Group (referred to in this title as the 
     ``Advisory Group'').
       (b) Members.--The Advisory Group shall be composed of 
     stakeholders such as the following individuals or the 
     designees of those individuals:
       (1) The Chairman of the Federal Trade Commission.
       (2) The Secretary of the Treasury.
       (3) The Attorney General.
       (4) The Director of the Bureau of Consumer Financial 
     Protection.
       (5) Representatives from each of the following sectors, 
     including trade associations, to be selected by the Federal 
     Trade Commission:
       (A) Retail.
       (B) Gift cards.
       (C) Telecommunications.
       (D) Wire-transfer services.
       (E) Senior peer advocates.
       (F) Consumer advocacy organizations with efforts focused on 
     preventing seniors from becoming the victims of scams.
       (G) Financial services, including institutions that engage 
     in digital currency.
       (H) Prepaid cards.
       (6) A member of the Board of Governors of the Federal 
     Reserve System.
       (7) A prudential regulator, as defined in section 1002 of 
     the Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5481).
       (8) The Director of the Financial Crimes Enforcement 
     Network.
       (9) Any other Federal, State, or local agency, industry 
     representative, consumer advocate, or entity, as determined 
     by the Federal Trade Commission.
       (c) No Compensation for Members.--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.
       (d) Duties.--
       (1) In general.--The Advisory Group shall--
       (A) collect information on the existence, use, and success 
     of educational materials and programs for retailers, 
     financial services, and wire-transfer companies, which--
       (i) may be used as a guide to educate employees on how to 
     identify and prevent scams that affect seniors; and
       (ii) include--

       (I) useful information for retailers, financial services, 
     and wire transfer companies for the purpose described in 
     clause (i);
       (II) training for employees on ways to identify and prevent 
     senior scams;
       (III) best practices for keeping employees up to date on 
     current scams;

[[Page H1757]]

       (IV) the most effective signage and placement in retail 
     locations to warn seniors about scammers' use of gift cards, 
     prepaid cards, and wire transfer services;
       (V) suggestions on effective collaborative community 
     education campaigns;
       (VI) available technology to assist in identifying possible 
     scams at the point of sale; and
       (VII) 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

       (B) based on the findings in subparagraph (A)--
       (i) 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
       (ii) 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.
       (2) Encouraged use.--The Chairman of the Federal Trade 
     Commission shall--
       (A) make the materials or guidance created by the Federal 
     Trade Commission described in paragraph (1) publicly 
     available; and
       (B) encourage the use and distribution of the materials 
     created under this subsection to prevent scams affecting 
     seniors by governmental agencies and the private sector.
       (e) Reports.--Section 101(c)(2) of the Elder Abuse 
     Prevention and Prosecution Act (34 U.S.C. 21711(c)(2)) is 
     amended--
       (1) in subparagraph (A)(iv), by striking the period at the 
     end and inserting a semicolon;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) with respect to the report by the Federal Trade 
     Commission, in relevant years, including information on--
       ``(i) the newly created materials, guidance, or 
     recommendations of the Senior Scams Prevention Advisory Group 
     established under section 102 of the Stop Senior Scams Act 
     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;
       ``(ii) the Senior Scams Prevention Advisory Group's 
     findings about senior scams and industry educational 
     materials and programs; and
       ``(iii) any recommendations on ways stakeholders can 
     continue to work together to reduce scams affecting 
     seniors.''.
       (f) Termination.--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.

                 TITLE II--SENIOR FRAUD ADVISORY OFFICE

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Seniors Fraud Prevention 
     Act of 2021''.

     SEC. 202. OFFICE FOR THE PREVENTION OF FRAUD TARGETING 
                   SENIORS.

       (a) Establishment of Advisory Office.--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:
       (1) Oversight.--The advisory office shall monitor the 
     market for mail, television, internet, telemarketing, and 
     recorded message telephone call (hereinafter referred to as 
     ``robocall'') fraud targeting seniors and shall coordinate 
     with other relevant agencies regarding the requirements of 
     this section.
       (2) Consumer education.--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--
       (A) 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;
       (B) 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;
       (C) 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
       (D) 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.
       (3) Complaints.--The Commission through the advisory office 
     shall, in consultation with the Attorney General, establish 
     procedures to--
       (A) 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
       (B) provide to individuals described in subparagraph (A), 
     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.
       (b) Commencement.--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.

                      TITLE III--BUDGETARY EFFECTS

     SEC. 301. BUDGETARY EFFECTS.

       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 
     ``Budgetary Effects of PAYGO Legislation'' 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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Pallone) and the gentleman from Florida (Mr. Bilirakis) 
each will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey.


                             General Leave

  Mr. PALLONE. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on H.R. 1215.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New Jersey?
  There was no objection.
  Mr. PALLONE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise to speak in support of H.R. 1215, the Fraud and 
Scam Reduction Act. This bipartisan bill was introduced by 
Representatives Blunt Rochester and Walberg with strong bipartisan 
support of 16 other Members. It also incorporates a bill originally 
introduced by Representatives Deutch, Buchanan, and Welch.
  Reducing scams and fraud is an issue of utmost importance in every 
community and especially so during these uncertain and unprecedented 
times. Right now, we are seeing the best of humanity, but unscrupulous 
scammers and fraudsters still abound, seeking to capitalize on the 
confusion and fear that is out there.
  Seniors are especially vulnerable. According to the most recent 
report from the Federal Trade Commission, older adults reported nearly 
$400 million in losses from fraud in 2018. It is rare to recover these 
losses. We all need to work together to protect senior citizens from 
scams before they fall victim and suffer monetary losses.
  Mr. Speaker, this bill establishes a new senior scams prevention 
advisory group composed of relevant government agencies and industry 
representatives to collect and implement best practices that stop 
scammers before they can cause harm. It will also establish new 
programs to prevent fraud that targets seniors. The legislation will 
also improve educational materials on senior scams and make sure that 
they are publicly available.
  This legislation also establishes an office at the FTC dedicated to 
preventing fraud targeting seniors and monitoring the market for such 
fraud. This office will also assist the FTC in monitoring the market 
for mail, television, internet, and telemarketing fraud targeting 
seniors. The office will also help with consumer education on fraud 
targeting seniors.
  The bill will help reinforce the efforts of the FTC to prevent fraud 
and mitigate the massive losses from fraud targeting seniors.
  I urge my colleagues to support this important measure, and I reserve 
the balance of my time.
  Mr. BILIRAKIS. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in strong support of H.R. 1215, the Fraud 
and Scam Reduction Act. I want to thank Representative Blunt Rochester, 
my good friend Representative Walberg, and the other members of the 
Energy and Commerce Committee for their tireless work on this important 
bill.
  H.R. 1215 would establish a senior scams prevention advisory council, 
which will create model educational materials to inform employees of 
retail companies and financial institutions on how to identify and 
prevent scams.

[[Page H1758]]

  This bill would work in concert with other recently enacted 
legislation to provide Americans with the tools they need to educate 
and protect themselves against these bad actors. It is a very good 
bill, Mr. Speaker.
  Mr. Speaker, I urge my colleagues to support this bill, and I reserve 
the balance of my time.
  Mr. PALLONE. Mr. Speaker, I yield such time as she may consume to the 
gentlewoman from Delaware (Ms. Blunt Rochester), who is also a member 
of the Energy and Commerce Committee.
  Ms. BLUNT ROCHESTER. Mr. Speaker, I thank Chairman Pallone for his 
tireless work to advance this important legislation.
  Mr. Speaker, today I rise in support of my bill, H.R. 1215, the Fraud 
and Scam Reduction Act. Bad actors preying on older Americans is 
unfortunately nothing new, but in the midst of a global pandemic, 
cracking down on those scams must be a priority of the Federal 
Government.
  That is why I proudly introduced the bipartisan Fraud and Scam 
Reduction Act with my colleagues Mr. Walberg, Deutch, Buchanan, and 
Welch.
  The bill, as its name suggests, was aimed at cracking down on these 
scams by doing two main things. It would create an advisory group under 
the Federal Trade Commission made up of government agencies, consumer 
advocates, and industry representatives, such as financial services and 
retail, to help identify potential sources of fraud and create 
educational materials for our Nation's seniors to protect them from 
these dangerous schemes. It would also establish the senior fraud 
advisory office, which would give seniors hope in recovering their 
assets stolen by fraudsters and improve our understanding of senior 
fraud by encouraging seniors to report this activity.
  We are proud to say that the bill has broad support, including AARP, 
the Retail Industry Leaders Association, Target, Best Buy, Walmart, and 
Western Union, as well as many more.
  Mr. Speaker, one of the most fundamental obligations of government is 
to protect our citizens. The least we can do is protect already 
vulnerable seniors from being taken advantage of by bad actors.
  Mr. Speaker, I thank my colleagues, Democrats and Republicans, for 
their work in strengthening the bill, and I urge all of my colleagues 
to vote in favor of the measure.

                              {time}  1330

  Mr. BILIRAKIS. Mr. Speaker, I yield such time as he may consume to 
the gentleman from the great State of Michigan (Mr. Walberg), my good 
friend.
  Mr. WALBERG. Mr. Speaker, I thank my friend from Florida for 
yielding.
  Mr. Speaker, I rise in support of H.R. 1215, Fraud and Scam Reduction 
Act, and thank my colleague and friend, Representative Blunt Rochester, 
as well as the Committee on Energy and Commerce staff for their hard 
work in bringing the bill to the floor today.
  Sadly, in today's digital age, scams targeting seniors and their 
hard-earned money are growing in number and sophistication.
  Every year, scammers steal billions of dollars from unsuspecting 
consumers. The effect on victims can be financially and emotionally 
devastating, and the COVID-19 pandemic has only made things worse. 
Safeguarding seniors in Michigan and across the country needs to be a 
top priority.
  Retailers have diligently worked to combat these crimes. Their 
ability to educate their employees with best practices and training to 
recognize the signs of a scam can make a huge difference in stopping 
criminals.
  Our bipartisan bill builds upon the work retailers are doing by 
creating a Federal advisory council at the FTC to create a unified 
front against criminals who target our most vulnerable citizens and 
stop this fraud before it is too late.
  Mr. Speaker, I urge the House to pass H.R. 1215 so we can help stop 
scammers from perpetrating a fraud and taking advantage of our loved 
ones and our neighbors.
  Mr. PALLONE. Mr. Speaker, I reserve the balance of my time.
  Mr. BILIRAKIS. Mr. Speaker, I urge Congress to pass this bill and get 
it to the President--actually, before that, we have to get it to the 
Senate and pass it immediately to protect our seniors, particularly 
during this very difficult time.
  Mr. Speaker, I yield back the balance of my time.
  Mr. PALLONE. Mr. Speaker, I also urge support for the bill, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New Jersey (Mr. Pallone) that the House suspend the 
rules and pass the bill, H.R. 1215, 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. HARRIS. Mr. Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________