Member Corner

Subcommittee on Capital Markets Chairman Ann Wagner (MO-02)

July 22, 2026

Fraud losses for Americans aged 60 and older surged nearly 400% between 2020 and 2024.

Rep. Ann Wagner's Financial Exploitation Prevention Act allows financial institutions to temporarily delay transactions suspected of fraud.

The bill passed the House with nearly unanimous bipartisan support last month.

For millions of seniors across this country, retirement isn’t given – it is earned through years of hard work and dedication. It is the result of overtime shifts, vacations postponed and contributions made even when budgets are tight. Retirement is the reward for decades of discipline, and for those who have made personal sacrifices to build up a nest egg, financial independence and peace of mind should be the payoff.

Unfortunately, for a growing number of seniors, this promise is under attack.

Seniors and vulnerable investors need our help, which is why I got to work and drafted the Financial Exploitation Prevention Act to give them simple and commonsense protections from fraud that has become all too commonplace and ruined too many lives.

According to the Federal Trade Commission (FTC), annual fraud losses reported by Americans aged 60 and older surged nearly 400% between 2020 and 2024, reaching almost $2.5 billion every year. One in five senior investors will fall victim to financial fraud in their lifetimes, and, in many of these cases, individual financial losses total over $100,000.

For retirees who rely on their hard-earned savings and investments to pay the bills, keep the lights on and put food on the table, fraud can be absolutely devastating. Sadly, with every day that passes, these crimes are becoming more frequent and even more sophisticated.

Bad actors have begun deploying artificial intelligence to create deepfake videos and cloned voices that can mimic trusted sources like children or grandchildren. By combining fake investment platforms with promises of exclusive offers and massive returns, fraudsters create a counterfeit legitimacy that can be nearly impossible for everyday investors to distinguish from the real thing.

The consequences for investors are real, painful, and in too many cases, irreversible.

Under current regulations, financial institutions that should be in the best position to intervene instead have their hands tied, only to watch from the sidelines as Americans are swindled out of their lifetime savings. Even if a firm recognizes and identifies a case of financial fraud, they are left with a stark choice: process a potentially fraudulent transaction, or delay and risk legal liability for not following a client’s order.

This is the opposite of how our laws should work. Regulations should empower good actors to prevent fraud, not disincentivize help when it is needed most. Firms that make a good-faith effort to protect their most vulnerable clients should not need to worry about facing punishment for doing the right thing.

This is a clear gap that needs to be addressed. And I have a solution.

My bill, H.R. 2478, the Financial Exploitation Prevention Act, allows financial institutions, including investment companies like mutual funds, to temporarily delay a transaction if they have a reasonable belief that the transaction is the result of financial exploitation.

By allowing for this pause, the bill creates a crucial window of up to 15 days that will provide the time necessary to investigate the situation and notify the appropriate authorities.

This important change gives vulnerable investors like our seniors, as well as individuals with certain disabilities, a crucial, extra layer of defense that will help preserve the hard-earned savings they have built up over decades.

This bill would also create a “safe harbor” for financial institutions that make a good faith effort to prevent exploitation. By removing the fear of litigation and the potential reputational harm that could come to the firm as a result, this legal clarity will empower the financial system to stop fraudsters in their tracks with timely, decisive action.

Finally, this bill will require the Securities and Exchange Commission to provide a report to Congress on additional legislative steps that we can take to further combat financial exploitation and fraud.

There is strong, bipartisan support for this effort. Last month, this bill passed on the House floor with a nearly unanimous vote, and now I’m working with my colleagues in the Senate to get this legislation across the finish line and to the President’s desk.

Too many Americans on both sides of the aisle know a loved one who has fallen victim to one of these schemes. There is a clear fix that has bipartisan support in both chambers of Congress. We need to get this done and protect the promise of a dignified, secure retirement.