The Passage of the Fraud And Scams Reduction Act

Wilma Consul:

Scams targeting seniors have increased during the pandemic. Today, we'll hear about new legislation called the Fraud and Scams Reduction Act, which AARP endorsed. Later in the program, we'll hear about a free and easy to use online platform to help with budgeting and unplanned expenses called AARP Money Map.

            Hi. I'm Wilma Consul with An AARP Take on Today.

            The FBI says online scams reached losses of nearly $7 billion, with Americans 50-plus losing almost half of that figure. It's crucial time that Congress this month passed a new legislation called the Fraud and Scams Reduction Act. One of its functions is to establish the Senior Scams Prevention Advisory Group. To tell us more about this new bill is Cristina Martin Firvida, AARP Vice President Of Financial Security and Consumer Affairs. Welcome to Take on Today, Cristina.

Cristina Martin Firvida:

Thank you for having us.

Wilma Consul:

AARP endorsed this bill from the very beginning. We know AARP is all about helping our seniors, especially those being taken advantage of. Can you share how crucial it is for the organization to work on this bill?

Cristina Martin Firvida:

AARP has a very long history of fighting for protections for older Americans and has been on the forefront of advocacy and support of both federal and state laws, as well as regulations to prevent financial exploitation and scams that target older Americans in particular. As you said, there has been such an uptick in fraud and scams, these terrible financial crimes, especially during the last two years of this pandemic. That's why this bill has really made us very happy because there's no time like right now to target these crimes.

Wilma Consul:

AARP has been working on this bill for a while, right?

Cristina Martin Firvida:

We have. We've been working on this legislation for years, as have a bipartisan group of members of Congress. It's really important to underscore that fraud hurts everybody. It is an issue that both parties, which we all know there's so much division these days, parties can't agree on a whole lot, but both Republicans and Democrats like to work together on fraud, because it hurts everyone at every age. But as you pointed out, it really in particular can put older people at risk.

Wilma Consul:

Yeah.

Cristina Martin Firvida:

This has really been a bipartisan effort, and I think that COVID and the acceleration of fraud during COVID absolutely helped get this bill across the finish line.

Wilma Consul:

Before we go into the role of the advisory group and get deeper into this, can you just give a little bit of examples of how grave this problem is? What are the scams that seniors are experiencing out there?

Cristina Martin Firvida:

Sure, absolutely. Scams can affect every part of anyone's life. Criminals are always trying to find new ways to trick people out of their personal information and their money. These can occur over the phone, on the internet, mass marketing is always a popular tactic for these criminals. A big reason that COVID accelerated a lot of the criminal activity is that so many of us were isolated from our family, from our friends, sometimes even our own neighbors, just in a tight-knit community. That isolation can really be a breeding ground for fraud and crime. We know that the Federal Trade Commission says that these crimes are costing older Americans at least $5.9 billion every year, but we think the actual losses are much higher and could be as high as $56 billion. We're talking about a lot of money that is being lost through fraud.

Wilma Consul:

This senior Scams Prevention Advisory Group has a very important role in this. Talk a little bit about this. From what I've read, it's not really aimed exactly for seniors. Or is it more for the companies that deal with seniors?

Cristina Martin Firvida:

That's a great question. The answer is it's both.

Wilma Consul:

Okay.

Cristina Martin Firvida:

The bill has a couple of different parts to it. Not a surprise, because it came about by joining up a couple of different bills. One bill that got enacted sets up a Senior Scams Prevention Advisory Group. This is a group that is really looking at all of the institutions that might touch your life. It's retailers, the places where you shop, it's banks, it's wire transfer companies, it's the government agencies that regulate those institutions. The purpose of this advisory group is to bring together the government agencies, the consumer advocates like AARP, the industry itself, like the banks themselves, to better educate those institutions on how they can play an important role in preventing fraud before it even takes money away from older Americans.

Wilma Consul:

Okay.

Cristina Martin Firvida:

That's one part of what the legislation does.

            It also has another part that creates a Senior Fraud Advisory Office. That office is really looking at working with people directly. That office would educate older adults, their families, caregivers, which is a really important part of this story-

Wilma Consul:

Yes.

Cristina Martin Firvida:

... on how and where to report fraud, how to identify it, how to protect yourself from it. A key part of that office will be helping older adults and their loved ones keeping up with the scammers, basically. You have to stay one step ahead. And educating the public on what to avoid.

Wilma Consul:

You mentioned all these companies, a lot of the scams also happen on social media, especially Facebook. Will they be included in this advisory group or in part of educating companies?

Cristina Martin Firvida:

That is a fantastic observation. A lot of this does happen on social media now. A lot of this happens over the internet. I think that the goal of the Senior Scams Prevention Advisory Group is to really look at where adults are conducting business, whether it's shopping, banking, saving for retirement. Like you said, a lot of that does happen online. A lot of that happens through social media. A lot of sales happen through social media. We're confident that that is going to be a part of what the advisory group will be looking at.

Wilma Consul:

What is the next step for this bill, and when can we start seeing results?

Cristina Martin Firvida:

This bill was already signed into law, which is fantastic.

Wilma Consul:

Yeah.

Cristina Martin Firvida:

That means that the government agencies that regulate all of these different retailers and that have enforcement powers to go after these criminals can get right to work. At AARP, our work is not done. After having spent years advocating for the enactment of these bills, now we're going to get to work to try to make sure that we can be part of the Senior Scam Prevention Advisory Group, so that we can represent older adults and be a voice for all of our members and other older Americans as the Federal Trade Commission puts together this important group and thinks through how to educate older adults, families, and caregivers about financial crimes and fraud.

Wilma Consul:

How will these folks get into the advisory group? Is it appointed or voting?

Cristina Martin Firvida:

Typically, for these kinds of advisory groups, there will be at some point a transparent process that is published by the Federal Trade Commission so that everyone understands what the process will look like. Typically, they will ask for recommendations from the public, essentially from the public, but that includes we're part of the public. That includes AARP. Everyone will have an opportunity to weigh in with the Federal Trade Commission on how the advisory group should look. Then the FTC, under the legislation, they will have the authority to make the final decision on who will sit on that group and how they will organize their meetings and when they will set deadlines for themselves. But it is a very transparent process. It is one that will be unfolding over the next many months. It's a process that we will engage in so that we can represent older adults and their needs as that group is established.

Wilma Consul:

Now, you know this. AARP has a lot of resources to educate its members to protect themselves from scams. But briefly, any advice for our listeners?

Cristina Martin Firvida:

We have the AARP Fraud Watch Network, which has been working for years to empower consumers to spot and stop scams, to provide support and guidance to the victims of these financial crimes, and to do our best to connect people with each other. One of the most important things we can do, as I said, is to stay one step ahead of the scammers. One of the big things Fraud Watch Network does is it gives a place for our members and others in the community to report the scams and frauds that they're seeing in their own community. This time of year, frequently, that's an IRS tax scam.

Wilma Consul:

Ah.

Cristina Martin Firvida:

It's very unfortunate during natural disasters. You always see a lot of folks going door-to-door, claiming they can help you get FEMA dollars or other disaster assistance dollars. These are recurring scams that travel from community to community, or have a natural cycle on the calendar, just like spring and summer come after fall and winter.

Wilma Consul:

Yeah.

Cristina Martin Firvida:

The Fraud Watch Network, which you can visit on our website, is a great place to connect, get information, educate yourself, empower yourself, report things that you're seeing, help others out. It's the Fraud Watch Network that has given us so many insights and has made us such a valuable voice in this arena, which is why we know we are confident we would be a really important addition to the advisory group, because of everything we've learned from our own members and other older adults.

Wilma Consul:

Well, you've given a lot of information and we certainly appreciate that. I hope that this helps our listeners out there. Cristina Martin Firvida is AARP's Vice President of Financial Security and Consumer Affairs. Thank you so much, Cristina.

Cristina Martin Firvida:

Thank you, Wilma.

Wilma Consul:

AARP's Fraud Watch Network helpline is a free resource for AARP members and non-members alike. Trained fraud specialists and volunteers field thousands of calls each month. Get guidance you can trust, free of judgment, at 877-908-3360 or at AARP.org/fraud. Again, that's 877-908-3360 or AARP.org/fraud.

            A new AARP survey shows nearly eight in 10 workers ages 30-plus are worried about prices rising faster than their income, making it difficult to cover everyday expenses, manage debt, and save for the future. With people struggling financially, AARP created a free tool for all ages to build a budget, save money, and manage debt and unplanned expenses. It's called AARP Money Map.

            Here to discuss the state of older adults' finances and AARP Money Map is Mary Liz Burns, Communications Strategy Director for Savings and Planning at AARP.

Mary Liz Burns:

Everyone is really struggling with increased expenses, regardless of your age. You look at the gas pumps, you look at the groceries you're buying, or think about the housing costs. But our new research at AARP shows that there's actually people who are taking on more debt today. The challenge with that is that they're taking on debt in order to cover some of those increased expenses, which means you're just spiraling down in terms of your financial health. It's so hard to get out of debt when you're continually taking it on.

            The price increases people are experiencing today are really eating into your budget, and they're eating into it in different ways. First of all, you can't save for emergencies like you're able to. That means the next time you get an unexpected bill, you may have a hard time paying it. You also aren't able to save for your future, because again, you're trying to deal with what's happening today. It's also hard to just pay for all those everyday expenses and very difficult to make those debt payments that folks are really facing.

Wilma Consul:

If you're looking for a free and easy to use online platform to help with budgeting and unplanned expenses, check out AARP Money Map.

Mary Liz Burns:

AARP Money Map is a free digital tool that actually provides a free action plan on basically any of the financial challenges you're facing related to an unplanned expense like that medical bill. It helps you manage your debt. In one place, you can enter all your debts and figure out what's the best way to tackle these payments and how do I make sure I make the right moves that also don't harm my credit score. We also help you build a budget. Maybe it's been a while that you've looked at your income and expenses. Find a budget that helps you also maybe save a little bit for those emergencies, so you can get out of debt faster.

            It is free and it's something that's available also in Spanish. It's available to everybody age 18 and older. You don't have to be an AARP member to use it. We'd love it if you joined, but people actually under the age of 50 are joining and are actually using the tool and they find a lot of value in it. That's also because we don't link to your financial accounts, which means that your privacy and security are completely protected. We also give you a free action plan that you can take and work on, on a daily, weekly, monthly basis. We chart your progress and we help kind of nudge you and really congratulate you for all the ways you're Trying to take control of your finances.

            Go to AARP.org/MoneyMap and get your free action plan today, and really take control of your finances and your debts.

Wilma Consul:

Mary Liz Burns is Communications Strategy Director for Savings and Planning at AARP. You can find more information at AARP.org/MoneyMap.

            That's it for this week's episode. You can find more resources in the show notes. If you liked this episode, please let us know by emailing us at NewsPodcast@AARP.org. Thanks to our news team: producers, Colby Nelson and Danny Alarcon; engineer, Julio Gonzales; executive producer, Jason Young; and my co-hosts, Bob Edwards and Mike Ellison. Become a subscriber on Spotify, Apple Podcast, Stitcher, or other apps, and be sure to rate our show as well. For An AARP Take on Today, I'm Wilma Consul. Thank you for listening.