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Minnesota Creates Nation’s First Fraud Fund

The law helps scam victims recoup losses

Donna Liquori,

AARP

Published March 01, 2026

Older couple looks with concern at a mobile phone screen.

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John Larkin of Falcon Heights didn’t initially think it odd when texts from his pastor requested gift cards totaling $2,000 for the church staff.

The pastor said he’d reimburse Larkin. He and his wife headed out to purchase the cards but stopped first for lunch, where Larkin began to wonder about the strange request.

He took a closer look at the text on his wife’s phone. As he scrolled through the message, which included specific directions to email gift card numbers and security codes, Larkin grew suspicious, noticing the email address didn’t match up with the email address for their church. He called the pastor, who assured the Larkins that he would never ask them to do such a thing.

“I actually worked in the cybersecurity arena for a while,” Larkin says “I was sort of shocked that I hadn’t picked up on it right away.”

Larkin, 71, shared his story with AARP Minnesota staff and testified before state lawmakers, urging them to create a restitution fund to help people defrauded in Minnesota recoup some of their losses. In 2024, state lawmakers did just that, passing the restitution law — which became the first of its kind in the nation. AARP advocated for the law as part of its ongoing efforts — including prevention programs and anti-fraud resources — to teach older Americans how to detect scams.

The fund, which is expected to start in early 2026, will bring some relief to Minnesota consumers. In 2024, according to the Federal Trade Commission, people in Minnesota reported losses of $144.6 million due to scams. Annually, up to $5 million — financed by penalties and distributed through the state attorney general’s office — will be available to compensate Minnesota victims of fraud.

Most victims likely won’t be made whole, “but it would be some money for them to help make ends meet,” says Jay Haapala, AARP Minnesota associate state director for community engagement.

Pause. Reflect. Protect.

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The Larkins’ pause was a crucial step in averting financial disaster at the hands of criminals, according to Kathy Stokes, senior director of AARP’s fraud prevention programs that urge people to “Pause, Reflect and Protect.” Scams have become nearly imperceptible due to new technologies and artificial intelligence, she says. “It is a contact from out of the blue that produces a heightened emotional state and contains urgency,” Stokes says.

In the Twin Cities area, police-impersonation scams are trending, Brooklyn Park Police Sgt. Jake Tuzinski says. He adds that most law enforcement inquiries are not so urgent that a person can’t call the station to verify a caller’s story. He is working with AARP Minnesota staff to educate the public by filming social media videos about prevalent scams, including cryptocurrency. He says another popular scam in Minnesota is where a victim is groomed over time in an investment or romance scam.

Haapala says another new state law aims to safeguard consumers from cryptocurrency scams. Criminals direct victims to withdraw cash from a bank and deposit the cash into crypto ATMs to take care of a false urgent matter. The money transfers to the criminals’ accounts. The new law requires warning signs on the machines and sets limits on daily transaction amounts. Haapala calls it “just a way of hopefully not having someone lose their entire life savings.”

AARP also advocated for passage of the law.

AARP Minnesota is planning several events to further educate people about fraud, including a Scam Jam in Maple Grove, where experts will speak about the latest fraud trends and how people can keep their money safe. AARP will also offer multiple document-shredding events. Go to aarp.org/events/find to search for events near you.

AARP Fraud Watch Network Learn more about AARP fraud resources.
AARP Fratch Watch Network Helpline 877-908-3360

Donna Liquori is a New York-based freelance journalist for AARP who covers state and local public policy, benefits, and advocacy issues affecting older adults, with additional bylines in national outlets and as the Times Union’s Bibliofiles columnist.