U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

69–010 

" ! SENATE 

114TH CONGRESS

2d Session 

REPORT

2016

114–370 

Calendar No. 663 

SENIORS FRAUD PREVENTION ACT OF 2015 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 1490 

NOVEMBER 15, 2016.—Ordered to be printed 


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(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED FOURTEENTH CONGRESS

SECOND SESSION

JOHN THUNE, South Dakota, Chairman 

ROGER F. WICKER, Mississippi BILL NELSON, Florida 

ROY BLUNT, Missouri MARIA CANTWELL, Washington 

MARCO RUBIO, Florida CLAIRE MCCASKILL, Missouri 

KELLY AYOTTE, New Hampshire AMY KLOBUCHAR, Minnesota 

TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut 

DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii 

JERRY MORAN, Kansas ED MARKEY, Massachusetts 

DAN SULLIVAN, Alaska CORY BOOKER, New Jersey 

RON JOHNSON, Wisconsin TOM UDALL, New Mexico 

DEAN HELLER, Nevada JOE MANCHIN, West Virginia 

CORY GARDNER, Colorado GARY PETERS, Michigan 

STEVE DAINES, Montana 

NICK ROSSI, Staff Director 

ADRIAN ARNAKIS, Deputy Staff Director 

JASON VAN BEEK, General Counsel 

KIM LIPSKY, Democratic Staff Director 

CHRISTOPHER DAY, Democratic Deputy Staff Director 

CLINT ODOM, Democratic General Counsel 

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1The U.S. Census Bureau projects the senior population in 2050 to be 83.7 million, almost 

double the estimated population in 2012. The Bureau also estimates that, by 2030, 20 percent 

of the U.S. population will be over age 65, compared to 13 percent in 2010 and 9.8 percent in 

1970. See Jennifer Ortman, Victoria Velkoff, & Howard Hogan; U.S. Department of Commerce, 

Continued 

Calendar No. 663 

114TH CONGRESS REPORT " ! SENATE 2d Session 114–370 

SENIORS FRAUD PREVENTION ACT OF 2015 

NOVEMBER 15, 2016.—Ordered to be printed 

Mr. THUNE, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 1490] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 1490) to establish an advisory office 

within the Bureau of Consumer Protection of the Federal Trade 

Commission to prevent fraud targeting seniors, and for other purposes, having considered the same, reports favorably thereon without amendment and recommends that the bill do pass. 

PURPOSE OF THE BILL

The purpose of S. 1490, the Seniors Fraud Prevention Act of 

2015, is to establish an advisory office within the Bureau of Consumer Protection of the Federal Trade Commission (FTC or Commission) to advise the Commission on the prevention of fraud targeting seniors by monitoring the market for specific fraud schemes 

aimed at seniors and coordinating with other agencies to provide 

consumer education materials to seniors and their caregivers. The 

bill would also require the FTC to work with the Attorney General 

to establish procedures to log complaints regarding fraud targeting 

seniors. 

BACKGROUND AND NEEDS

Seniors, those Americans aged 65 and older, number over 43 million and are the fastest growing segment of the population.1 While 

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2 

U.S. Census Bureau, An Aging Nation: The Older Population in the United States, May 2014, 

pp.1–3, at https://www.census.gov/prod/2014pubs/p25-1140.pdf. 2The FTC’s third consumer fraud survey found that the overall victimization rate for seniors 

was significantly lower than for younger consumers. FTC Bureau of Economics Staff Report, 

Consumer Fraud in the U.S., 2011, pp. 56–59, Apr. 2013, at https://www.ftc.gov/reports/consumer-fraud-united-states-2011-third-ftc-survey. But see, FBI Fraud Target: Senior Citizens, 

available at https://www.fbi.gov/scams-safety/fraud/seniors, (FBI estimates that older Americans 

are less likely to report fraud because they are embarrassed, don’t know who to report it to, 

or don’t know that they have been defrauded). 3 In 2011, the net worth for households headed by seniors was approximately $17.2 trillion, with a median net worth of $170,500. See Census Bureau, Table 5, ‘‘Mean Value of Assets for 

Households by Type of Asset Owned and Selected Characteristics: 2011’’ 2011, at http:// 

www.census.gov/people/wealth/files/WealthlTablesl2011.xlsx. 4The Metlife Mature Market Institute, MetLife Study of Elder Financial Abuse, Crimes of Occasion, Desperation, and Predation Against America’s Elders, June 2011, at http:// 

www.metlife.com/assets/cao/mmi/publications/studies/2011/mmi-elder-financial-abuse.pdf. 5TrueLink Report on Elder Financial Abuse 2015, January 2015, at http://www.nasuad/ 

files/True-Link-Report-On-Elder-Financial-Abuse.pdf. 6FTC v. Sun Bright Ventures LLC, No. 140CV–02153–JDW–EAJ (M.D. Fla Oct. 2, 2014), at 

https://www.ftc.gov/enforcement/cases-proceedings/132-3217/sun-bright-ventures-llc-gmy-llc. 7FTC v. Worldwide Information Services, Inc., No. 6:14–CV–8 ORC–28DAB (M.D. Fla Jan. 

13, 2014), at https://www.ftc.gov/enforcement/cases-proceedings/132-3175/worldwide-info-services-inc. 8Pass It On materials, at https://www.ftc.gov/PassItOn. The materials are free and in the public domain and hard copies may be requested from https://www.ftc.gov/bulkorder. 

older Americans are not necessarily victimized by fraud at higher 

rates than younger consumers,2 their relative net worth makes 

them attractive targets to fraudsters.3 Fraud directed toward seniors ranges from Medicare and medical device fraud to ‘‘grandparents schemes,’’ in which fraudsters call a senior and pretend to 

be a grandchild in need of wired prison bail, to imposter schemes 

that claim to provide technical support to remedy non-existent computer problems. Statistics measuring the financial cost of fraud targeting seniors range from $2.9 billion 4 to $12.46 billion 5 annually. 

The FTC, a civil enforcement agency, takes a multi-faceted approach to combating fraud that includes both enforcement and education efforts. In the past few years, it has brought cases against 

fraudsters targeting seniors. One telemarketing scam attempted to 

get seniors to divulge personal information by claiming to be part 

of Medicare.6 The scammers used this information to debit $399 or 

$488 from each of the victims. In another case, fraudsters used 

robocalls to tell seniors that a friend or family member had purchased a medical alert system for them and that monthly monitoring fees would only be charged once the system was installed 

and activated, but instead began charging them immediately.7

In addition to these enforcement actions, the FTC has developed 

a consumer education campaign called Pass It On, which targets 

active, older adults. The goal of Pass It On is to educate seniors 

about common fraud schemes so they can pass on this information 

to their respective communities.8 Since launching the campaign in 

July 2014, the FTC has received requests for more than 250,000 

copies of Pass It On from organizations in 49 States. The FTC also 

partners with organizations such as the American Association of 

Retired Persons to provide education and counseling to seniors that 

have been affected by fraud. Through this program, the FTC refers 

consumers over the age of 60 that have called the FTC’s Consumer 

Response Center with complaints about fraud to peer counselors 

that provide support to those that have been targeted. 

The Commission also participates in the Elder Justice Coordinating Council, an organization composed of 12 Federal agencies, 

which meets regularly to coordinate activities related to elder 

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9The Elder Justice Coordinating Council is chaired by the Department of Health and Human 

Services and its membership includes the Consumer Financial Protection Bureau, the Corporation for National and Community Service, the Department of Housing and Urban Development, 

the Department of Justice, the Department of Labor, the Department of Transportation, the 

Veterans Administration, the FTC, the Securities and Exchange Commission, the Social Security Administration, and the U.S. Postal Inspection Service. 10 U.S. Department of Health & Human Services, Eight (8) Recommendations for Increased 

Federal Involvement In Addressing Elder Abuse, Neglect, and Exploitation, May 2014, at http:// 

www.aoa.acl.gov/AoAlPrograms/ElderlRights/EJCC/docs/ 

EightlRecommendationslforlIncreasedlFederallInvolvement.pdf. 

abuse, neglect, and exploitation.9 Every 2 years, the Council provides a report to Congress with recommendations on how best to 

address these abuses. The Council’s most recent report contained 

eight recommendations for increased Federal involvement in addressing these issues, including a recommendation that agencies 

develop a public awareness campaign to assist in preventing elder 

abuse, including fraud targeting older Americans.10

To address these issues, S. 1490 would establish a permanent advisory office within the FTC’s Bureau of Consumer Protection to 

streamline efforts to prevent fraud targeting seniors. This bill also 

would facilitate coordination between various Federal agencies with 

jurisdiction over fraud to ensure consumer education efforts are effective, contain accurate information, and are consistent across the 

relevant agencies. 

LEGISLATIVE HISTORY

Senator Klobuchar introduced this bill on June 3, 2015, with 

Senator Collins as an original cosponsor. The bill is also cosponsored by Senators Ayotte, McCaskill, Schatz, and Shaheen. On 

June 15, 2016, the Committee met in open Executive Session and, 

by voice vote, ordered S. 1490 to be reported favorably without 

amendment. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office: 

S. 1490—Seniors Fraud Prevention Act of 2015 

S. 1490 would direct the Federal Trade Commission (FTC) to establish an advisory office to assist the commission with preventing 

fraud that targets seniors. CBO estimates that implementing S. 

1490 would have no significant effect on the federal budget. 

Under current law, the FTC has the authority to issue rules regarding unfair or deceptive acts or practices affecting commerce. 

Within the FTC, the Bureau of Consumer Protection investigates 

consumer complaints, develops rules, and educates consumers 

about those practices. S. 1490 would direct the FTC to establish an 

office within the Bureau of Consumer Protection to address deceptive practices that target seniors. The office would monitor fraud 

activity, disseminate information regarding common fraud schemes, 

and maintain a website. The advisory office also would log complaints received in the Consumer Sentinel Network, which is currently operated by the FTC. On the basis of information from the 

FTC, CBO estimates that the costs of implementing S. 1490 would 

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be less than $500,000 annually because the agency is already taking actions to monitor and disseminate information to prevent 

fraud that targets seniors. That spending would be subject to the 

availability of appropriated funds. 

Enacting S. 1490 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. CBO estimates 

that enacting S. 1490 would not increase net direct spending or onbudget deficits in any of the four consecutive 10-year periods beginning in 2027. 

S. 1490 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Stephen Rabent. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

REGULATORY IMPACT

Because S. 1490 would not create any new programs, the legislation would have no additional regulatory impact, and would result 

in no additional reporting requirements. The legislation will have 

no further effect on the number or types of individuals and businesses regulated, the economic impact of such regulation, the personal privacy of affected individuals, or the paperwork required 

from such individuals and businesses. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides that no provisions 

contained in the bill, as reported, meet the definition of congressionally directed spending items under the rule. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title. 

This section would establish the bill’s short title as the ‘‘Seniors 

Fraud Prevention Act of 2015.’’ 

Section 2. Office for the Prevention of Fraud Targeting Seniors. 

This section would establish an office within the FTC’s Bureau 

of Consumer Protection that would advise the Commission on the 

prevention of fraud targeting seniors. 

The advisory office would be tasked with monitoring the market 

for mail, television, internet, and robocall fraud targeting seniors. 

The office also would consult with the Attorney General, Secretary of Health and Human Services, the Postmaster General, the 

Chief Postal Inspector for the United States Postal Inspection Service, and other relevant agencies to undertake efforts to educate consumers, including seniors, their families, and their caregivers, 

about fraud targeting older Americans. This consumer outreach 

program would provide information about the most common senior 

fraud schemes as well as information on how to report senior fraud 

through the national toll-free number or through the FTC’s Consumer Sentinel Network. 

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This section would require the Commission, in response to a specific request, to provide publicly available information about any 

enforcement actions it has taken against any particular individual 

or entity. The advisory office also would maintain a website providing information regarding the various types of fraud targeting 

seniors. 

This section also would require the Commission, through the advisory office, and in consultation with the Attorney General, to establish procedures to log and acknowledge complaints from individuals who believe they have been victims of mail, television, internet, telemarketing, and robocall fraud in the Consumer Sentinel 

Network. These complaints would be made immediately available 

to Federal, State and local law enforcement authorities. In so 

doing, the Commission, acting though the advisory office, would be 

required to consult with the Attorney General to provide specific 

and general information on fraud schemes to individuals and law 

enforcement agencies. 

This section would clarify, however, that the Commission, 

through the advisory office, may implement the consumer education program and complaint procedures described in this section 

without the approval of the officials and agencies with which it is 

required to consult. 

The Commission would have 1 year after the date of enactment 

to commence carrying out the bill’s requirements. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee states that the bill as reported 

would make no change to existing law. 

Æ 

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