On Thursday, Sens. Ruben Gallego (D-Ariz.) and Bill Hagerty (R-Tenn.) introduced the Financial Exploitation Prevention Act. The legislation would give the financial services industry better tools to address suspected financial exploitation and abuse of seniors, as well as those with mental and physical disabilities. “Far too many of Arizona’s seniors fall victim to scammers who target their hard-earned life savings,” Gallego said in a statement. “Once the money is gone from their accounts, it’s almost impossible to get back. I’m proud to lead this legislation to strengthen the financial industry’s banks’ ability to step in when they suspect fraud and give seniors a critical safeguard against bad actors. This bill will protect Arizona’s retirees and keep their accounts safe when they need them most.” “Older Americans are being exploited through financial scams, losing billions of dollars each year,” Hagerty said. “I’m pleased to reintroduce this legislation with Senator Gallego to provide financial professionals the ability to address the growing issue of financial exploitation and abuse of vulnerable investors.” The Financial Exploitation Prevention Act would give the financial services industry new tools to address suspected abuse of “specified adults,” defined by the bill as anyone 65 or older, or adults with physical or mental impairments that make them unable to protect their own interests. Companies could postpone payments for up to 15 business days, with the option to extend for an additional 10 business days if they notify designated contacts, conduct an internal review and maintain funds in a demand deposit account. The bill directs the Securities and Exchange Commission (SEC) to recommend legislative and regulatory changes to Congress, and it allows mutual funds and their transfer agents to delay redemptions if exploitation is suspected. The proposal calls for the SEC to consult with the Federal Reserve, the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau, banking regulators and state securities officials. The measure comes as 10,000 Americans turn 65 each day, with seniors projected to make up roughly 20% of the U.S. population by 2030. Recent data from the Federal Trade Commission shows that the 60-and-older population lost more than $1.9 billion to financial scams in 2023.