U.S. Senators Susan Collins, Andy Kim, Dave McCormick, and Kirsten Gillibrand introduced the Senior Security Act on Mar. 12. The bipartisan legislation aims to protect older Americans from financial scams by creating a Senior Investor Task Force within the Securities and Exchange Commission (SEC) and strengthening safeguards for senior investors.
The issue is significant as financial fraud continues to target seniors, with billions lost each year through investment scams. The proposed task force would focus on identifying challenges faced by senior investors, coordinating with state and federal agencies, and recommending improvements in regulations and practices.
“As a Senator representing the oldest state in the country, I have consistently worked to fight fraud and financial exploitation targeted at older Americans,” said Senator Collins. “This bipartisan bill would ensure that the Securities and Exchange Commission has the expertise needed to coordinate the efforts of state authorities and regulators to reduce the risk of senior investors being defrauded.”
Senator Kim said, “Scammers are preying on our seniors, stealing billions of dollars from Americans’ hard-earned retirement savings. Aging with dignity and security shouldn’t be too much to ask for in our country. We need this legislation and task force to take targeted and thorough action to confront these crimes and stand up for our nation’s seniors.”
Senator McCormick added, “Pennsylvania seniors deserve to be protected from scammers looking to steal their retirement savings. I’m proud to work across the aisle to give the Securities and Exchange Commission stronger tools to crack down on fraud and ensure our seniors are not targets of financial scammers.”
“Senior investors deserve to be protected, especially as scammers increasingly target older Americans, robbing them of their hard-earned savings and stealing their personal information,” said Senator Gillibrand. “As the top-ranking Democrat on the Senate Aging Committee, I’ve seen firsthand the devastating impact these scams have on older Americans and their families, and how far too often federal agencies remain unprepared to address the specific needs of older populations. Our Senior Security Act would establish a dedicated task force to better protect investors over the age of 65 and help create the stronger protections that our seniors and their families deserve. I am proud to introduce this legislation and will fight to get it across the finish line.”
The bill outlines responsibilities for the new SEC task force such as reporting trends affecting senior investors, summarizing industry practices related to seniors, identifying best practices or areas needing improvement based on enforcement actions or outreach efforts, highlighting serious issues encountered by senior investors regarding financial products or services, and making recommendations for regulatory or legislative changes.
In addition to its introduction in the Senate, Representatives Josh Gottheimer (D-NJ-05) and Ann Wagner (R-MO-02) introduced companion legislation in the House of Representatives where it passed unanimously. The Senior Security Act has also received endorsement from AARP.
While serving as Chair of the Senate Aging Committee from 2015 through 2021, Senator Collins oversaw 25 hearings examining scams targeting older Americans. The committee continues its work by releasing an annual Fraud Book detailing common scams reported through its hotline.
