Key Takeaways
- •Sen. Scott (R-FL) and Sen. Gillibrand (D-NY) launched "Guarding Your Nest Egg," a bipartisan financial resource guide designed to help seniors navigate Social Security, Medicare, and fraud prevention.
- •Sam Kunjun (Vice President, Consumer Education at the American Bankers Association Foundation) urged Congress to establish federal standards allowing banks to pause transactions when suspecting elder financial exploitation.
- •Sen. Husted (R-OH) questioned Kunjun on AI-driven scams, who advised families to verify identities through known numbers and utilize "trusted contact" options at financial institutions.
- •Sen. Scott (R-FL) emphasized reducing bureaucracy and spending, while Sen. Gillibrand (D-NY) defended the federal government's role in managing Medicare and Medicaid as essential for senior security.
- •The committee will evaluate legislative solutions like the Senior Security Act and potential "hold laws" to give financial institutions more authority to intervene during suspected elder financial abuse.
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Hearing Analysis
Overview
This hearing addressed the critical need to improve financial literacy among older Americans to help them navigate complex retirement decisions and protect themselves against increasingly sophisticated fraud. Witnesses and lawmakers examined how the shift from employer-managed pensions to individual-managed retirement accounts has placed a heavy burden on seniors to understand Social Security claiming strategies, Medicare options, and investment decumulation. The discussion emphasized that financial literacy is not just an educational goal but a vital defense mechanism against scammers who leveraged artificial intelligence and voice cloning to steal nearly $5 billion from seniors in 2024.
Key Testimony & Policy
Christine Kieffer, Senior Director and Interim Head of FINRA’s Office of Investor Education, testified that financial literacy serves as a "critical buffer" against the challenges of aging. She introduced the concept of "persuasion literacy"—the ability to recognize the emotional manipulation tactics used by scammers. Kieffer highlighted FINRA’s "Frontline Responders" program, designed to train congressional staff to assist constituents targeted by fraud, and the "Financial Intelligence Fusion Center," which facilitates threat-sharing between firms to protect customer accounts.
Sam Kunjun, Vice President of Consumer Education at the American Bankers Association (ABA) Foundation, detailed the banking industry's four-pronged strategy: consumer education, banker training, law enforcement partnerships, and technological leverage. He advocated for a national education campaign to expose common scam tactics like "manufactured urgency." Kunjun specifically called for federal legislative standards that would provide a "safe harbor" for banks to delay suspicious transactions, similar to "hold and delay" laws already passed in 27 states.
Carly Roszkowski, Vice President of Financial Resilience Programming at AARP, focused on the "Claiming Age Clarity Act," noting that many seniors lose significant lifetime income by claiming Social Security before age 70 without understanding the 8% annual benefit increase they forfeit. She noted that 64% of older adults worry about outliving their savings, a fear exacerbated by inflation and rising healthcare costs. Roszkowski emphasized that financial education must be lifelong and delivered through trusted messengers in plain language.
Scott Kahan, a Certified Financial Planner (CFP) representing the Financial Asset Management Corporation, discussed the importance of the fiduciary standard. He noted that while CFP professionals are legally required to act in a client's best interest, many "financial advisors" are not. Kahan highlighted the "Tax Relief for Victims of Crimes, Scams, and Disasters Act," which aims to alleviate the "double hit" seniors face when they owe taxes on retirement funds stolen by scammers.
Notable Exchanges & Partisan Dynamics
The hearing was characterized by a high degree of bipartisan cooperation. Chairman Rick Scott (R-FL) and Ranking Member Kirsten E. Gillibrand (D-NY) jointly announced the release of a new resource guide titled "Guarding Your Nest Egg: A Financial Resource Guide for Older Adults," available on the committee’s website.
Sen. Jon Husted (R-OH) expressed outrage at criminals using AI to impersonate grandchildren, stating there is a "special place in hell" for such actors. He discussed his legislation aimed at preventing deepfake scams by establishing a task force to work with financial institutions. Sen. Andy Kim (D-NJ) highlighted the "Senior Security Act," which would create a senior investor task force within the Securities and Exchange Commission (SEC) to strengthen safeguards against exploitation.
Sen. Ashley Moody (R-FL) shared her experience as Florida’s Attorney General, where she established a senior protection team and a statewide cyber fraud unit. She questioned witnesses on the effectiveness of state-level "hold laws," such as Florida’s "Protection of Specified Adult" statute, which allows financial institutions to pause transactions when they suspect exploitation. Mr. Kunjun responded that such laws are effective but require better consumer education so seniors understand that a transaction delay is for their protection rather than an infringement on their autonomy.
Organizations Mentioned
* **Financial Industry Regulatory Authority (FINRA):** Discussed as a primary watchdog for investment markets; mentioned regarding its BrokerCheck tool and its "Frontline Responders" training for congressional offices. * **American Bankers Association (ABA):** Highlighted for its "Safe Banking for Seniors" program and its advocacy for federal "safe harbor" standards for transaction delays. * **AARP:** Mentioned for its Fraud Watch Network, its helpline for victims, and its research on Social Security claiming ages and the "return to work" trend among retirees. * **Federal Bureau of Investigation (FBI):** Cited for data showing a 60% increase in reported financial losses among seniors and for identifying investment and romance scams as top threats. * **Securities and Exchange Commission (SEC):** Discussed in the context of the "Senior Security Act" and its Investment Adviser Public Disclosure database. * **Certified Financial Planner Board of Standards (CFP Board):** Mentioned regarding the fiduciary standard and the importance of professional certification in protecting senior assets. * **National Adult Protective Services Association (NAPSA):** Identified as a key partner for banks in reporting and investigating elder financial exploitation.
What's Next
Chairman Scott (R-FL) announced that the committee’s new financial resource guide, "Guarding Your Nest Egg," is now live at aging.senate.gov. Lawmakers indicated they would continue to push for the "Senior Security Act" and the "Claiming Age Clarity Act." The hearing record remains open until the following Wednesday at 5:00 p.m. for additional witness statements or questions. Chairman Scott also reminded the public of the committee’s fraud hotline (1-855-303-9470) for reporting suspected scams.
Transcript
The U.S. Senate Special Committee on Aging will now come to order. I'd like to start today's hearing by asking you to think about someone you love. We all have somebody we love. I've got a I would first off think about a five-year-old granddaughter that turns six tomorrow. She's so excited about her birthday. Maybe it's a parent, a grandparent, even a neighbor you've lived down the street from your whole life. Someone who worked hard their entire career and did everything they could to set themselves up for retirement with the information available to them. Now ask yourself, ask yourself, is that enough? Does that person know when the best time to claim their Social Security benefits is? Do they know what happens to their monthly check if you claim it at 62 versus 67 versus 70? Do they know the difference between a Medicare Advantage plan and a Medigap supplement? Do they know what questions to ask before handing their savings over to a financial planner? Chances are they don't. And it's not entirely their fault. For so many Americans, and especially our seniors, it's hard to find the information. When you do find it, it's often incredibly complicated and it might be biased. As a country, we have done a poor job of ensuring people know their options and what route will work best for their needs. I wonder how AI answers these questions, it'd be interesting. And it's having real consequences on our seniors' lives. Right now, nearly half of older American households earn less than what's needed to cover basic living expenses. Housing, healthcare, transportation, food, the basics, and they've all gone up in cost. Social Security, which is about 78 percent of retirees what they depend on, only replaces about 40 percent of pre-retirement income on average. Oftentimes people don't think about that. The math's hard, the reality is stark, there's little room for error. At the same time, older Americans are being forced to make some of the most consequential financial decisions of their entire lives. When to retire, when to claim benefits, how to draw down savings without outliving them, how to evaluate insurance products, how to protect a home and an estate. One thing like in our state, people are frustrated you buy a house and then your property insurance keeps going up or your HOA fees. When I was growing up, if you got your house paid off, there was almost no other cost. These aren't easy questions and too many seniors are answering them alone, without clear guidance, under real pressure, and with less of a cushion than they expected. The result becomes a guessing game where they hope for the best and often fear for the worst. But you can't blame them. Too often the resources that are supposed to help people best prepare are buried on government websites, written in language designed for policy experts, and delivered too late. I just learned yesterday when the FDA does a recall, they just put it on a website. That's all they do. So you have no idea. No idea. Who would think that would be a problem? But the challenges don't stop there. On top of all that, the scammers come calling. You know, I get on a daily basis now, and I delete it and I hit spam, somebody that has said I'm approved for a new credit line. Every day, and it's a different number every day. In 2024, fraud and scams cost older Americans nearly $5 billion. These criminals are not amateurs. They use tools like artificial intelligence, voice cloning, government impersonation, and more to attack us all. They do their homework, they know exactly what to say and exactly how to say it. For all the work, they are counting on one thing, that nobody ever warned their victim about what to look for. That needs to change. Financial literacy is one of the most powerful and most underused tools we have to protect older Americans. Not just from fraud, but across the board. When seniors understand how their benefits work, they make better decisions. When they know how to read a financial statement and recognize bad actors, they're harder to deceive. When they understand the difference between a legitimate investment and a pitch that's too good to be true, they protect themselves. I got a letter from a Canadian law firm that said they think somebody died that was related to me because they had the last name Scott. And they said they would split it with me and it was something like $8 or $10 or $12 million bucks. And so it looked like a nice letterhead from a law firm, so I looked up I got on the web and I looked up the law firm, it looked like a legitimate law firm. But they didn't have any lawyers. Details, details. When they understand the difference between legitimate investment and a pitch that's too good to be true, they protect themselves. When they know where to turn for trusted help, they know they're not navigating this alone. And the best part, this doesn't require a new government program or more federal bureaucracy. It doesn't require more spending to be thrown at the problem. It requires clear information, trusted messengers, and the commitment to actually get that information to people's hands. This is exactly what this committee set out to do, and today I'm proud to announce the upcoming release of our it's from both the ranking member and me, a new resource, Guarding Your Nest Egg: A Financial Resource Guide for Older Adults. This package will cover the decisions that matter most in retirement: Social Security, Medicare, housing, charitable giving, disaster preparedness, and planning for the unexpected. It will also provide clear guidelines as to what a scam looks like and how to guard yourself against them. Plain language, tools you can actually use. It's available today at aging.senate.gov. Because every older American in this country deserves the tools to protect what they spent a lifetime building. Not more red tape, not more bureaucracy, just clear information and the freedom to use it. Now let me turn it over to the ranking member who's been a pleasure to work with on this committee.
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