With bank fraud on the rise, Janine Williamson, an elder fraud prevention advocate, is calling on Congress to step up with legislation that makes banks accountable when scammers slip through the cracks. The proposed “Protecting Consumers from Payment Scams Act” could be a game-changer for consumers, especially vulnerable seniors. Here’s what you need to know.
Williamson wants Congress to pass S. 4943 and H.R. 9303, which would expand banks’ responsibilities to reimburse consumers hit by fraud. A similar law, called “Larry’s Law,” was enacted earlier this year to help banks spot elder fraud in Virginia. This push for federal accountability comes as elder fraud cases and financial exploitation continue to rise.
How These Scams Work
- Bank Impersonation & Account Fraud: Scammers impersonate banks or other trusted entities to steal login information or convince seniors to transfer money. Often, they use tactics like phishing or urgent calls to pressure victims.
- Phishing Attacks on Seniors: Many scams start with a phishing email or text asking for personal or financial information. Scammers then use this info to access accounts or steal identities.
- Social Engineering: Scammers pretend to be family members, officials, or tech support to gain the victim’s trust and then request funds or sensitive data.
Who’s Targeted?
These scams specifically target seniors, who are often trusting and may be less familiar with digital threats. Scammers play on emotions, urgency, and familiarity to bypass a senior’s defenses.
Real-Life Example
Williamson’s fight for stronger protections is personal. Her uncle, Larry Cook, a retired Navy commander, lost millions to a phishing scam in the final months of his life. Known as “Larry’s Law,” Virginia’s HB 692 enables financial institutions to notify a trusted contact when suspected fraud occurs on a senior’s account, a model that could be replicated nationwide.
Why You Should Care
Elder financial scams don’t just affect the victims—they also hit families and caregivers who have to pick up the pieces. With $10 billion lost to scams last year in the U.S. alone, the economic and emotional toll of elder fraud is staggering. The proposed act would provide extra safeguards, taking the pressure off families and placing more responsibility on financial institutions.
Protecting Yourself Against Elder Fraud
- Verify Any Unusual Requests: Contact banks or institutions directly using verified contact info if you receive a suspicious call or message.
- Set Up a Trusted Contact: Add a trusted contact to your bank accounts, as allowed by Larry’s Law in Virginia. This gives banks a second layer of contact if they suspect fraud.
- Stay Informed: Educate yourself and family members about common scams and the latest tactics scammers use.
- Use Secure Communication: Only discuss sensitive information through secure channels, avoiding text or email for personal details.
- Encourage Reporting: If fraud occurs, report it to the authorities and financial institutions to prevent further loss and protect others.
Quick Tips for Elder Fraud Safety
- Did you know? Legitimate banks and government agencies never ask for payment or account details over the phone or email.
- Pro Tip: Use strong, unique passwords and enable multi-factor authentication for all accounts.
Key Terms Defined
- Phishing: A scam where fraudsters pose as trusted organizations to steal sensitive information.
- Social Engineering: Manipulating people to divulge confidential info by building trust or creating urgency.
- Trusted Contact: A person designated on a bank account who can be notified in case of suspicious activity.
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