RELEASE: Gottheimer Leads Bipartisan Bill to Protect Seniors From Scams

WASHINGTON, D.C. — This week, U.S. Congressman Josh Gottheimer (NJ-05) introduced bipartisan legislation alongside Reps. Zach Nunn (IA-03) and Scott Fitzgerald (WI-05) to combat financial fraud and “pig butchering” scams targeting older Americans.

The bipartisan Guarding Unprotected Aging Retirees from Deception (GUARD) Act would allow state and local law enforcement to use eligible federal grant funding to investigate financial fraud and “pig butchering” scams against retirees. It will also permit federal law enforcement to assist state and local law enforcement with tracing tools for blockchain technology.

“We need twenty-first-century tools to crack down on fraudsters who use every trick in the book — social media, emails, texts, and phone calls — to swindle Americans out of billions of dollars every year. That’s why I’m proud to co-lead the bipartisan GUARD Act to ensure that law enforcement can access cutting-edge technologies to stop these scams and protect our communities,” said Congressman Josh Gottheimer (NJ-5), Co-Chair of the bipartisan Law Enforcement Caucus and member of the House Financial Services Committee. “Our law enforcement is the best in the world, and I’ll never stop fighting to give them the tools necessary to help keep our streets, homes, and families safe.”

“Scammers prey on Iowa retirees and steal their hard-earned money. In 2023 alone, the Iowa Attorney General’s office received more than 13,000 financial fraud reports resulting in approximately $42.6 million in financial losses,” said Congressman Zach Nunn (IA-03). “Iowa retirees shouldn’t have to worry about fraudsters robbing them of their savings with fake investment schemes. But if they are scammed, law enforcement should have the tools needed to bring their case to justice.”

“As technology continues to evolve, so do the tactics used by bad actors to defraud Americans. The GUARD Act represents a critical step in equipping our state and local law enforcement with the tools they need to combat financial fraud more effectively,” said Congressman Scott Fitzgerald (WI-05). “By harnessing innovative technologies like blockchain, we can better protect Wisconsin seniors and families from increasingly sophisticated scams. I’m proud to co-lead this effort to safeguard Americans’ financial security.”

A “pig butchering” scam is a type of financial fraud where scammers target individuals, commonly retirees, to convince them to invest money in a fake opportunity. The term “pig butchering” refers to the process of “fattening up” a victim with false promises before “butchering” them by stealing their invested funds.

In 2021, the median loss for individuals over the age of 70 was a staggering $9,000, compared to $2,400 across all age groups. In 2022, these scams resulted in reported losses of more than $1 billion. While federal agencies are trained in blockchain tracing skills, many states have limited staff with the ability to help these victims. This leads to many crimes going unsolved.

The bipartisan GUARD Act is supported by the AARP, the Iowa State Police Association, the Financial Technology Association, Consumer Bankers Association, America’s Credit Union Association, Digital Chamber, National Police Association, Crypto Council for Innovation, and the Iowa Bankers Association.

“This bipartisan legislation would help to equip state and local law enforcement, who are on the front lines responding to fraud, with the resources they need to investigate fraud, hold criminals accountable and bring justice to victims,” said Bill Sweeney, AARP Senior Vice President of Government Affairs.

Text of the bill can be found here.

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