House Passes Anti-Fraud Fund Redemption Bill 414-2 as Senior Scam Losses Hit $2.4 Billion
Updated
Updated · CNBC · Jul 2
House Passes Anti-Fraud Fund Redemption Bill 414-2 as Senior Scam Losses Hit $2.4 Billion
1 articles · Updated · CNBC · Jul 2
Summary
A 414-2 House vote sent the Financial Exploitation Prevention Act of 2025 to the Senate, aiming to let mutual funds, most ETFs and transfer agents slow suspected scam-driven withdrawals by vulnerable adults.
The bill would allow an initial 15-day redemption delay for investors 65 or older or disabled adults, extendable by 10 more days and longer with court or regulator approval.
Participating firms would have to seek a trusted contact for customers and the SEC would have one year to report to Congress on additional ways to curb fraud against vulnerable adults.
$2.4 billion in scams was reported by adults 60 and older in 2024, up 26.3% from 2023, while the FTC says actual losses may have reached $81.5 billion and investment scams caused most losses.
The measure now faces an uncertain Senate path after a prior version passed the House 419-0 in 2023 but died when the Senate took no action.