[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.
____________________