Woonsocket Radio News Room

Amo Urges Federal Trade Commission Chair to Address Rampant Senior Fraud

Rhode Island is one of the top ten states that has seen elder fraud on the rise between 2022 and 2023

 

WASHINGTON, DC – Today, Congressman Gabe Amo (RI-01) urged the Federal Trade Commission (FTC) Chair Lina M. Khan to help prevent elder fraud in Rhode Island. In the letter, Congressman Amo highlights that Rhode Island is one of ten states to see the largest increase in elder fraud between 2022 and 2023. The letter asks for assistance in addressing the increasing prevalence of fraud and scams in Rhode Island and across the country affecting seniors.

 

Specifically, the letter asks for advice on legislation to stop scam artists and recover funds for vulnerable consumers, the FTC hold an event in Rhode Island’s First Congressional District, and additional consumer education material on elder fraud to improve consumer awareness. The letter highlights federal legislation passed in 2022 that enhances the FTC’s ability to monitor and respond to fraud complaints.

 

“I appreciate that the Federal Trade Commission has […] partnered with other government agencies, advocacy groups, and private industry stakeholders to expand consumer education and outreach efforts, improve industry training on scam prevention, identify innovative or high-tech methods to detect and stop scams, and review research on effective messaging to prevent scams,” said the letter sent by Congressman Amo. “Unfortunately, despite the additional support provided by Congress and continued efforts by the FTC, fraudulent activities targeting seniors are becoming increasingly prevalent, costly, and sophisticated. I remain committed to working with the FTC to prevent elder fraud and educate consumers on avoiding scams.”

 

Read the full letter HERE

 

READ THE FULL TEXT OF THE LETTER

Dear Chair Khan,

 

I write to express my appreciation for the productive meeting my staff had with staff of the Federal Trade Commission’s (FTC) Bureau of Consumer Protection. Our staff discussed how Congress and the FTC can work together to address the increasing prevalence of fraud and scams in Rhode Island and across the country affecting older constituents.

 

As the Chair of the federal agency tasked with protecting consumers from deceptive or unfair business practices, you are aware of the “highly varied nature of these scams and the limitations of consumer self-reporting.”^[1] Elder fraud and scams encompass a wide range of deceptive practices that often exploit vulnerable communities. These deceitful practices can include impersonation scams, investment scams, and business email compromise scams. The impacts can include significant financial losses for victims and emotional distress that undermine victims’ sense of security and faith in our systems.

 

According to a recent report, elder fraud is on the rise across our country. Ten states, including Rhode Island, have seen the largest increase in elder fraud between 2022 and 2023. While the number of elder fraud cases decreased slightly from its peak in 2020, the average dollar amount lost per complaint is nearly four times higher. ^[2] This harm to constituents is unacceptable.

 

The growing epidemic of elder fraud requires immediate and sustained attention. Last year, elder fraud complaints to the Federal Bureau of Investigation’s Internet Crime Complaint Center rose by 14 percent, with losses [to our seniors] increasing by 11 percent to $3.4 billion.^[3] However, according to the FTC, “less than 3 percent of consumers who experienced fraud reported it to a government entity,” meaning rates of elder fraud are likely significantly higher than reported. Experts estimate fraudulent actors stole between $7.1 billion and $61.5 billion from older adults in 2023.^[4]

 

In 2022, Congress sought to address the rise of scams and fraud by passing the Stop Senior Scams Act, which established the Scams Against Older Adults Advisory Group. I appreciate that the FTC has since partnered with other government agencies, advocacy groups, and private industry stakeholders to expand consumer education and outreach efforts, improve industry training on scam prevention, identify innovative or high-tech methods to detect and stop scams, and review research on effective messaging to prevent scams.^[5] Additionally, the Senior Fraud Prevention Act established an office within the FTC to advise the Commission on strategies to protect older Americans, while also improving the agency’s monitoring and response to fraud complaints.^[6] Lastly, the FTC’s yearly report to Congress on its actions to protect older consumers helps highlight key trends in elder fraud, coordination with other federal agencies and stakeholders, and enforcement actions. I look forward to amplifying the contents of this report and supporting the efforts to combat fraud set forth by the FTC.

 

Unfortunately, despite the additional support provided by Congress and continued efforts by the FTC, fraudulent activities targeting seniors are becoming increasingly prevalent, costly, and sophisticated. I remain committed to working with the FTC to prevent elder fraud and educate consumers on avoiding scams. In furtherance of that goal, I request:

 

1. Your advice on legislation to ensure that the FTC can stop scam artists in federal court, freeze their assets, and return funds to consumers.
2. The FTC hold an event in Rhode Island’s First Congressional District, with key stakeholders, including senior citizens, law enforcement, financial institutions, and caregiving organizations to bring attention to the issue of elder fraud and provide elder fraud prevention information to Rhode Islanders.
3. You provide my staff with consumer education material on elder fraud to improve consumer awareness and prevention efforts for constituents.

 

Thank you for your time and consideration. I look forward to our continued collaboration on efforts to safeguard my constituents from fraud.