U.S. Senator Kirsten Gillibrand, the ranking member of the Senate Aging Committee, has introduced the Stop the Scammers Act in response to significant cuts to the Consumer Financial Protection Bureau (CFPB) that followed the recent Republican tax bill. According to data from 2024, New Yorkers lost over $540 million due to fraud.
“Too often, seniors are taken advantage of by scammers who rob them of their hard-earned savings and steal their private information,” said Senator Gillibrand. “We must do more to stop scammers and protect older adults. As the top-ranking Democrat on the Senate Aging Committee, I know how important the CFPB is for American seniors. The Stop the Scammers Act will restore funding to this vital agency and protect Americans from bad financial actors.”
The proposed legislation would enable the CFPB to offer financial rewards to whistleblowers who report violations of consumer protection laws. These rewards would be funded through penalties collected from companies and individuals found guilty of such violations. Additionally, whistleblowers would be permitted to retain independent legal counsel and have their identities protected under the act.
The bill aims to restore CFPB funding by tying it to 12 percent of the Federal Reserve’s operating budget. This measure seeks to ensure that the bureau can continue its mission of protecting consumers.
The Stop the Scammers Act has garnered support from several Democratic senators, including Catherine Cortez Masto, Chuck Schumer, Elizabeth Warren, Angela Alsobrooks, Richard Blumenthal, Cory Booker, Dick Durbin, John Fetterman, Ruben Gallego, John Hickenlooper, Andy Kim, Amy Klobuchar, Ben Ray Luján, Jeff Merkley, Jack Reed, Jacky Rosen, Bernie Sanders, Tina Smith, Chris Van Hollen, Peter Welch, and Sheldon Whitehouse.
Senator Gillibrand has previously championed other consumer protection initiatives such as the Senior Financial Empowerment Act and DO NOT CALL Act. She also introduced provisions for SNAP theft protection that became law in 2022.
The full text of the Stop the Scammers Act can be found here.
