New Safeguards for Older Investors: The Financial Exploitation Prevention Act and What It Could Mean

Michael C. Loch

September 2, 2026

Fraud targeting older Americans has been on the rise keeps rising year after year, and technology is a big reason why. Scammers can now use AI-generated voices and spoofed caller IDs to impersonate as government agencies, tech support, or even a relative in trouble, which leaves trusting seniors exposed.

Recent legislation has attempted to create additional safeguards. On June 25, 2026, the U.S. House of Representatives took aim at preventing further fraud by passing the Financial Exploitation Prevention Act of 2025 (H.R. 2478) by a vote of 414 to 2.

I've spent over 27 years working alongside clients at every stage of retirement, from the people just starting to picture life after work to those well into the withdrawal years. I see this bill as a win for advisors and the families we serve.

A Bipartisan Response to a Growing Problem

The problem has become hard to ignore. Anna Sulkin Stern recently reported on this on WealthManagement.com, noting that according to the FBI Internet Crime Complaint Center, individuals age 60 and older lost over $7.7 billion to scams in 2025, a 59% increase from the previous year (and many more go unreported).

With roughly 10,000 Americans are turning 65 every day and as many as one-in-five older investors touched by some form of fraud, the safeguards in this bill are both timely and necessary.

How the Bill Protects Certain Adults

Before its passage, advisors faced a difficult choice when they suspected a withdrawal request was the result of fraud or undue influence. Delaying a transaction could leave advisors exposed to potential liability, while processing it could put the client’s assets at risk.

The new legislation provides advisors with a 15-day window to pause suspicious transactions while they investigate, with an additional 10-day extension available if exploitation is confirmed.

The protections are intended for "specified adults" -- people aged 65 or older and vulnerable adults whose mental or physical impairments limit their ability to protect their own interests. The standard is a reasonable belief of exploitation (not just a hunch), which keeps legitimate transactions from getting caught up in unnecessary delays.

Why Advisors Are Sometimes the First to Notice Unusual Activity

Investment advisors often have longstanding relationships with their clients and are uniquely positioned to recognize when a financial request is out of the ordinary. Some of the signals might include a withdrawal that doesn't fit the pattern, a new "friend" suddenly involved in decisions, or pressure to move money quickly. These are signs that a longtime advisor could pick up on.

The ability to temporarily pause a suspicious redemption request while confirming its legitimacy may help prevent further losses from financial exploitation, which has cost older Americans billions of dollars.

Real Protection Should Start Before Anything Goes Wrong

Planning ahead could be even more important than a potential 15-day pause. Actions to take include naming a trusted contact who has permission to ask for and to provide financial information and talking candidly about how financial decisions should be handled if you or a loved one experiences cognitive decline or illness.

Those conversations aren't the easiest ones to start, but they’re extremely important when your intent is to protect yourself, a loved one, or your legacy.

Reach out to Grant Street Asset Management if you’d like to have a conversation about reviewing your plan, naming a trusted contact, or talking through how we can help you watch for warning signs.

🔗To read the full article from WealthManagement.com, click here