House Bill Would Protect Retirees From Financial Fraud

Representative Zachary Nunn, R-Iowa, introduced bipartisan legislation on Monday that would allow local law enforcement agencies access to federal grants to investigate financial fraud against retirees.  

The Guarding Unprotected Aging Retirees from Deception (GUARD) Act would also permit federal law enforcement to assist state and local law enforcement with investigations, such as using tools for tracing blockchain technology. 

“Scammers prey on Iowa retirees and steal their hard-earned money. In 2023 alone, the Iowa Attorney General’s office received more than 13,000 financial fraud reports resulting in approximately $42.6 million in financial losses,” Nunn said in a statement. “Iowa retirees shouldn’t have to worry about fraudsters robbing them of their savings with fake investment schemes. But if they are scammed, law enforcement should have the tools needed to bring their case to justice.” 

If passed, the bill would permit local officials to use federal grants to hire specialized staff and invest in training focused on emerging financial technologies. 

Agencies that receive federal funding would have one year to report to the granting federal agency how the funds were used, provide data on fraud trends and assess the impact of the funding.  

In addition, the Department of the Treasury and the Financial Crimes Enforcement Network would be tasked with producing two major reports for Congress. One would detail enforcement efforts and scam trends, and another would examine the overall state of fraud and scams in the U.S., including losses, origins and enforcement outcomes. 

The bill would also promote better data sharing and coordination between financial institutions and law enforcement by encouraging the appointment of financial sector liaisons. 

The legislation has two co-sponsors: Representative Josh Gottheimer, D-New Jersey, and Representative Scott Fitzgerald, R-Wisconsin. 

The bill was referred to the House Committee on the Judiciary and to the House Committee on Financial Services. 

Pig Butchering a Specific Target 

The bill specifically aims to address one common type of fraud targeting the elderly, known as ‘pig-butchering’—a form of investment scam in which victims are gradually manipulated into making financial contributions of increasing amounts, often in cryptocurrency, until the fraudster vanishes with the money. 

In 2023, Americans aged 60 or older reported more than $3.4 billion in losses to the Internet Crime Complaint Center—an 11% increase from 2022—while complaints rose by 14%, according to the FBI’s 2023 elder fraud report. 

Nunn’s office positioned passing the GUARD Act as allowing state and local officers access to federal support that would otherwise not be available, according to a statement from Nunn. 

Bill Sweeney, AARP’s senior vice president of government affairs, said the bill would provide additional resources for officials combatting fraud. 

“This bipartisan legislation would help to equip state and local law enforcement, who are on the front lines responding to fraud, with the resources they need to investigate fraud, hold criminals accountable and bring justice to victims,” Sweeney said in a statement.