The House of Representatives voted 414-2 to approve the Financial Exploitation Prevention Act of 2025, legislation designed to combat fraud targeting older adults and individuals with disabilities. The measure now advances to the Senate, where a companion bill awaits consideration in the Banking Committee.
The bill grants mutual funds, most exchange-traded funds, and their transfer agents authority to delay redemption requests when financial exploitation is suspected. Initial delays can extend up to 15 days, with an additional 10-day pause possible if exploitation is confirmed. Courts and state regulators may authorize longer holds. Additionally, the legislation would require investment companies participating in the program to ask customers to designate a trusted contact who receives notification if fraud is suspected.
Financial fraud targeting seniors has reached alarming levels. Adults age 60 and older reported losses totaling $2.4 billion in 2024, representing a 26.3% increase from the previous year and a 300% jump from 2020 figures. The Federal Trade Commission estimates actual losses may reach $81.5 billion when accounting for unreported incidents. Investment scams drive the majority of losses, with cases involving individual losses exceeding $100,000 accounting for $1.6 billion of reported losses.
Broader fraud trends across all age groups also show significant growth. Total reported fraud losses reached $15.9 billion in 2025, the highest on record and up 27% from the prior year. Since 2020, reported losses have surged nearly 430%. The legislation also directs the Securities and Exchange Commission to issue a report within one year examining regulatory and legislative approaches to reducing financial fraud among vulnerable populations.
A previous version of this bill passed the House unanimously in 2023 but did not advance in the Senate. Experts recommend vigilance against common fraud tactics, including pressure to act quickly, demands for secrecy, and requests to move money to unfamiliar accounts.
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