AARP Eye Center
AARP Advocating for State Fraud Restitution Fund
Posted on 11/19/24
AARP is committed to combating fraud by educating people about current trends, advocating for improved consumer protections, and enforcing laws.
AARP Minnesota is pushing for the passage of legislation to create a state-level Consumer Fraud Restitution Fund (Fund) for victims of fraud, modeled after the federal Consumer Financial Protection Bureau Civil Penalty Fund. This initiative aims to provide financial relief to those who have fallen prey to scams and would be particularly beneficial for older adults who are no longer working and need financial recovery. Urging state lawmakers to establish such a fund is a top AARP legislative priority in 2025.
The Fund would be managed by the state Attorney General’s (AG) office and is seen as crucial for cases where the perpetrator is overseas or bankrupt. Currently, excess money from civil penalty payments in fraud cases won by the AG's office goes into the state’s general fund. The proposed restitution fund would redirect these funds to help fraud victims recover their losses.
Getting money back to people will give AG a reason to go after scammers and incentivize more people to report financial crimes if they know they could get their money back. To receive funds, the AG would have to bring a case against a defendant as a public enforcement action and obtain an order from the court based on the AG’s investigation establishing that the person was defrauded.
It’s an idea we completely support. Such a fund is particularly vital in cases where the perpetrator is overseas or bankrupt.
Jessica Whitney, Minnesota Deputy Attorney General
According to the Federal Trade Commission, Minnesotans reported more than 22,0000 fraud reports within the first three quarters of 2024, with losses totaling near $103 million.
In 2020, a Hennepin County couple in their 80s lost over $110,000 to a scam involving a fake multimillion-dollar sweepstakes. The scammers kept the couple on the phone for hours, gaining their trust and convincing them to pay taxes upfront to claim their prize. Despite filing a police report, the perpetrators remain unidentified, and the money was never recovered.
At least six states have created some form of state-level restitution for victims of investment frauds and scams, an idea AARP is advocating for in more states, says Chad Mullen, AARP’s national director of financial security.
This proposed legislation represents a significant step towards providing much-needed financial relief to fraud victims in Minnesota.
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The AARP Fraud Watch Network™ provides free information, tools and tips to help you protect your hard-earned dollars from frauds and scams. AARP Minnesota advocates at the state, federal, and local levels to improve consumer protections and enforce laws. If you've been targeted by scams or fraud, you are not alone.
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