I 
112TH CONGRESS 
1ST SESSION 
H. R. 370 
To require financial institutions to offer services to protect seniors from 
affinity scams, to report suspected affinity scams, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 20, 2011 
Mr. BACA introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To require financial institutions to offer services to protect 
seniors from affinity scams, to report suspected affinity 
scams, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Preventing Affinity 
Scams for Seniors Act of 2011’’ or the ‘‘PASS Act of 
2011’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
(1) Financial exploitation of the elderly is be-
coming an increasingly familiar problem. Regular re-
view of news headlines reveals that elders and vul-
nerable adults are victimized routinely by frauds and 
scams at the hands of strangers as well as loved 
ones. 
(2) Older individuals may be targeted merely 
because they possess more assets, such as savings, 
annuities, and retirement accounts, stocks and 
bonds, insurance policies, and property than younger 
people. People over 50 years of age control at least 
70 percent of the net worth of the Nation’s house-
holds. 
(3) Those elders with cognitive impairments, 
mental health conditions, or physical disabilities may 
be dependent upon others (family members, friends, 
formal and informal caregivers, or court-appointed 
representatives) for assistance in making financial 
decisions or carrying out daily transactions, and 
therefore may be even more vulnerable to theft, ex-
ploitation, or undue influence. 
(4) Affinity scams on seniors involve trans-
actions in which a person trusted by the senior uses 
the relationship to defraud the senior. Millions of el-
derly are scammed each year, losing at least 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
$2,600,000,000 a year to thieves, many of whom are 
in their own families (conservative estimate given of 
the schemes left unreported). 
(5) Elder financial abuse is commonly linked 
with other forms of abuse and neglect and threatens 
the health, dignity, and economic security of millions 
of older Americans. Elder financial abuse has re-
ceived limited attention because it is not regarded as 
visible, life-threatening, or newsworthy as is the 
physical or sexual abuse of elders. 
(6) Financial exploitation can be devastating to 
the victim and is often traced to family members, 
trusted friends, or caregivers. Financial abuse often 
occurs with the implied acknowledgment and consent 
of the elder person and can be more difficult to de-
tect. 
(7) Elder financial abuse affects elders and 
their families in significant and long-lasting ways by 
putting enormous emotional duress on the elders, in-
creasing their risk of depression, decreasing their 
quality of life, and increasing unnecessary institu-
tionalization. 
(8) The financial services industry is often the 
first to detect a change in the pattern of customers 
with whom they have regular contact. This puts in-
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
stitutions in a unique position to assist in protecting 
customers and upholding the inherent trust relation-
ship with clients. 
SEC. 3. DEFINITIONS. 
For purposes of this Act: 
(1) AFFINITY SCAM.—The term ‘‘affinity scam’’ 
means a transaction in which a person trusted by a 
senior, such as a caregiver, relative, guardian, ‘‘new 
friend’’, or service provider, claims to share similar 
interests or values with the senior, establishes a rela-
tionship with the senior (either on the person’s own 
initiative or through some other method, such as a 
court-appointed guardianship), and then uses the re-
lationship to defraud the senior. 
(2) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ means— 
(A) an insured bank (as defined in section 
3(h) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(h)); 
(B) a credit union; and 
(C) a thrift institution. 
(3) SENIOR.—The term ‘‘senior’’ means an in-
dividual who is at least 65 years of age. 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
SEC. 4. AFFINITY SCAM EDUCATION AND TRAINING. 
(a) STAFF EDUCATION AND TRAINING.—Each finan-
cial institution shall— 
(1) educate the staff of the financial institution 
about affinity scams and how to identify trans-
actions that may be part of an affinity scam; and 
(2) train staff members on educating seniors 
about affinity scams. 
(b) SENIOR CUSTOMER EDUCATION.—Each financial 
institution shall provide educational materials and other 
information to seniors who maintain a deposit account 
with the financial institution about affinity scams and how 
to identify transactions that may be part of an affinity 
scam. 
(c) EDUCATION AND TRAINING OVERSIGHT.—The 
Bureau of Consumer Financial Protection shall— 
(1) issue such regulations as are necessary to 
carry out this section; and 
(2) periodically audit financial institutions to 
ensure compliance with such regulations. 
SEC. 5. SENIOR PROTECTION ACCOUNTS. 
(a) IN GENERAL.—Each financial institution shall 
offer seniors a type of checking account to be known as 
a ‘‘senior protection account’’. 
(b) SENIOR
PROTECTION
ACCOUNT
REQUIRE-
MENTS.— 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
(1) IN GENERAL.—With respect to a senior who 
maintains a senior protection account with a finan-
cial institution, if the financial institution receives a 
transaction request to debit such account and, be-
fore processing the transaction, the financial institu-
tion identifies the transaction as possibly being part 
of an affinity scam, the financial institution shall— 
(A) not process the transaction; and 
(B) initiate an investigation in order to de-
termine if such transaction is part of an affinity 
scam or is legitimate. 
(2) INVESTIGATION.—With respect to a trans-
action that is the basis of an investigation described 
under paragraph (1)(B), a financial institution 
shall— 
(A) notify the senior whose account the 
transaction would debit, if processed, that the 
financial institution— 
(i) has identified the transaction as 
possibly being part of an affinity scam; 
and 
(ii) has not yet processed the trans-
action, pending the result of an investiga-
tion; 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
(B) if the financial institution determines 
that the transaction is part of an affinity 
scam— 
(i) notify the senior of such deter-
mination; 
(ii) refer such transaction to the ap-
propriate law enforcement agency; and 
(iii) report such transaction to the 
Bureau of Consumer Financial Protection; 
and 
(C) if the financial institution does not de-
termine that the transaction is part of an affin-
ity scam— 
(i) notify the senior of such deter-
mination; and 
(ii) process such transaction not later 
than 7 business days from the date on 
which the investigation was started, unless 
instructed otherwise by the senior. 
(3) DESIGNATION OF STAFF PERSON.—Each fi-
nancial institution shall designate a single staff per-
son who shall be notified whenever a staff person 
identifies a transaction that is possibly part of an af-
finity scam. 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
(4) LIABILITY.—A financial institution that 
fails to process a transaction or that refers a trans-
action to law enforcement pursuant to the require-
ments of this subsection shall not be liable to any 
person under any law or regulation of the United 
States, any constitution, law, or regulation of any 
State or political subdivision of any State, or under 
any contract or other legally enforceable agreement 
(including any arbitration agreement), for such fail-
ure or referral. 
(c) RULEMAKING.—The Secretary of the Treasury 
shall issue such regulations as are necessary to carry out 
this section. 
(d) TAX DEDUCTION.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall by regulation establish a deduction to be 
allowed in computing the taxable income of financial 
institutions for purposes of the Internal Revenue 
Code of 1986. 
(2) AMOUNT OF DEDUCTION.—Such deduction 
with respect to any financial institution for a taxable 
year shall be an amount equal to 0.77 percent of the 
average of the amount of deposits held by such fi-
nancial institution in senior protection accounts for 
each day during such taxable year. 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS
(e) CIVIL LIABILITY.—Any financial institution that 
fails to comply with any provision of this section with re-
spect to a senior shall be liable to such senior in an 
amount equal to the sum of the following: 
(1) ACTUAL DAMAGES.—The amount of any ac-
tual damage sustained by the senior as a result of 
such failure. 
(2) ATTORNEYS’ FEES.—In the case of any suc-
cessful action to enforce any liability under para-
graph (1), the costs of the action, together with rea-
sonable attorneys’ fees. 
(f) NONDISCRIMINATION.—A financial institution 
may not discriminate against seniors in any fees or other 
charges required by the financial institution in order to 
cover the cost to the financial institution of implementing 
the requirements of this Act. 
SEC. 6. ADDING AFFINITY SCAMS TARGETING SENIORS TO 
THE SUSPICIOUS TRANSACTION REPORTING 
REQUIREMENT. 
Section 5318(g)(1) of title 31, United States Code, 
is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(A) POSSIBLE
VIOLATION
OF
LAW
OR 
REGULATION.—The Secretary’’; and 
VerDate Mar 15 2010 
02:08 Jan 21, 2011
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H370.IH
H370
smartinez on DSKB9S0YB1PROD with BILLS