St. Paul, Minnesota — Today the Minnesota House of Representatives passed legislation aimed at protecting older Minnesotans from scams and wire transfer fraud. HF 527 and HF 194 received broad bipartisan support and were authored by State Representative Joe Atkins (DFL – Inver Grove Heights).
Too many older Minnesotans fall victim to frauds and scams that can wreak havoc on their financial security. In tough economic times, a senior’s vulnerability to scams only increases. Tens of thousands of Minnesotans have been scammed by making a wire transfer — resulting in millions of dollars of loss per year. Scam artists often target seniors – and they use wire transfers because fraudulent activity is hard to track and law enforcement agencies have few tools to stop the fraud. The bill is a top legislative priority for AARP for this session.
“These scams continue to be a growing problem and we need to do all we can to combat them,” said Rep. Atkins. “This legislation is a tool of protection and will make a huge difference in preventing these types of scams.”
Last year Rep. Atkins spearheaded an effort resulting in a new law that now requires wire transfer companies to establish a consumer education program to help warn seniors of the potential for fraud in a wire transfer. HF 194/SF 247 will help further protect seniors from wire transfer fraud by requiring wire transfer companies to confirm that the location provided by the sender is the location where the money ends up. This is important because too often, the sender believes the money is going to help a grandchild or a friend in a particular state or country – but the money is actually being transferred to a fraud “hotspot” in a different location.
Law enforcement officials also confirm only 5 percent of these crimes are reported, as victims of these scams tend to either be embarrassed or are elderly individuals who are fearful their families will no longer allow them to handle their own finances. Even worse, some victims are blackmailed by their scammers into sending even more money, based on threats that their family members will be contacted and told of what the victim has done.
“Minnesotans are good and trusting people, meaning we get targeted by these scams more than most,” added Rep. Atkins. “Minnesota seniors and their families should never have to be subjected to these terrible, heartbreaking crimes. We have to protect our vulnerable citizens.”
The Senate version of the bill, SF 247 contains provisions to provide more authority to the Department of Commerce to protect consumers by increasing penalties and regulatory actions against this type of organized fraud, require wire transfer companies to provide a confirmation of the money sent and who picked up the transaction, and allow a sender to be put on a "Do Not Send" list to prevent repeated transfers. Once the Senate passes their legislation, the House will likely concur with the additional protections in the Senate bill.