WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, delivered an opening statement at a hearing titled “Protecting Americans’ Money: Combatting Scams and Frauds Against Seniors and Savers.”
Senator Brown welcomed Senator Helmy to the committee before addressing the historical context of scams and frauds, referencing biblical times and Charles Ponzi in the 1920s. He emphasized that while scams are not new, their frequency has increased significantly in recent years.
“These scams can start with a simple text from what seems like just a wrong number,” said Brown. He noted that scammers often use artificial intelligence to disguise their voices or mimic family members. They exploit various tactics to build trust with their targets before draining their savings.
Data from Ohio in 2023 indicated more than $126 million was reported lost to fraud. Nationally, $10 billion were reported lost to fraud in 2023 according to the Federal Trade Commission, marking an increase of over $1 billion from the previous year.
Brown highlighted several cases in Ohio, including a senior who lost $127,000 to criminals posing as bank employees and a man who lost $80,000 to a fake investment scam. He pointed out that many scams go unreported due to victims' embarrassment.
“Seniors face the greatest threat,” stated Brown, explaining that retirement savings make them prime targets for scammers. In Ohio in 2023, individuals over 60 accounted for more than half of the dollars lost to fraud.
Brown called for collaborative efforts between federal, state, and local law enforcement agencies and urged private sector companies to enhance protections against scams. He specifically mentioned payment platforms like Zelle, Venmo, and Cash App needing to take more responsibility for safeguarding consumers' money.
He also referenced legislative efforts by Senators Hagerty and Tester aimed at strengthening financial protections for seniors.
In his concluding remarks, Brown acknowledged the contributions of state and local officials and organizations like AARP in raising awareness about scams. He introduced Sheryl Harris from the Cuyahoga County Department of Consumer Affairs as one of the witnesses testifying at the hearing.
“I look forward to continuing to work with my colleagues to protect workers’ savings,” concluded Brown.
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