Indy Standard

This week, Senators Kirsten Gillibrand and Elizabeth Warren called for answers from the Trump administration regarding federal cuts to agencies that protect seniors from financial frauds and scams. Their demand follows a Government Accountability Office (GAO) report highlighting the need for enhanced protections against such frauds through better coordination among federal agencies like the FBI, Treasury Department, FTC, Federal Reserve, and CFPB.

The senators expressed concern over ongoing efforts by the Trump administration to reduce these agencies' effectiveness. For instance, in April, approximately 1,500 employees were dismissed from the CFPB—almost 90% of its staff. The newly established "Department of Government Efficiency" (DOGE) has also been implicated in reducing personnel across federal agencies crucial for safeguarding older adults.

In their letter, the senators wrote: “GAO’s report detailed the need to enhance our nation’s response to scams... Despite that need, President Trump allowed an out-of-touch billionaire to slash the very agencies that protect Americans from scams.” They requested GAO examine how these cuts impact the government's ability to address frauds and scams.

In 2024 alone, American consumers reported losing over $12.5 billion to fraud. Older Americans lost a record $4.8 billion last year according to FBI data. The full text of their letter can be accessed here or below.

Dear Mr. Dodaro,

We write today to request that GAO follow up on its report titled Consumer Protection: Actions Needed to Improve Complaint Reporting, Consumer Education, and Federal Coordination to Counter Scams (GAO-25-107088). Despite recommendations for improved interagency cooperation outlined in this report, President Trump enabled drastic agency cuts affecting millions of older adults.

These scams have significant impacts on older adults' mental and financial health as they are often targeted due to accumulated savings and housing wealth. One victim testified about losing her late husband’s job and self-confidence due to a scam which forced him into medication rationing—contributing further decline in his health.

The GAO's April 2025 report underscored weaknesses within federal anti-scam efforts while recommending measures including a national strategy led by FBI against scams involving overseas criminal organizations collaborating with U.S.-based operatives.

However since January 20th under DOGE leadership spearheaded by Elon Musk—the world’s richest man—there has been an attempt at cutting $1 trillion from vital services aiding working-class citizens alongside those combating fraudulent activities targeting vulnerable groups like seniors or disabled individuals resulting mass firings particularly affecting CFPB staffing levels negatively impacting their mission objectives related specifically towards combating elder abuse/fraudulent practices effectively long-term basis given current trends/efforts underway per latest available information/reports received thus far...

Understanding implications stemming directly indirectly via aforementioned policies/actions undertaken remains critical priority henceforth moving forward accordingly upon receipt/analysis subsequent action plans submitted respective agency heads concerned ultimately ensuring continued protection afforded duly deserving constituencies nationwide...

Sincerely,