U.S. House passes bill to delay suspicious transactions tied to financial scams

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House bill delays suspicious transactions

Highlights

The U.S. House passes H.R. 2478, the Financial Exploitation Prevention Act of 2025, in a 414-2 vote on June 25, 2026.
The bill empowers financial institutions and mutual funds to delay suspicious transactions when exploitation of vulnerable clients is reasonably suspected.
Reported fraud against Americans over 60 climbs nearly 400% from 2020 to 2024, totaling almost $2.5 billion in losses for seniors.

House vote and bill provisions

As reported by the House Committee on Financial Services, the U.S. House of Representatives passes H.R. 2478, the Financial Exploitation Prevention Act of 2025, by a vote of 414-2 on June 25, 2026.

The bill, sponsored by Subcommittee on Capital Markets Chairman Ann Wagner and Representative Josh Gottheimer, gives financial institutions broader authority to temporarily delay some transactions when exploitation of vulnerable customers is reasonably suspected. The measure is aimed at protecting older Americans as well as people with mental or physical disabilities while preserving customer rights and oversight, according to supporters.

Financial Services Committee Chairman Hill says stronger coordination among families, financial institutions and law enforcement is needed to combat fraud and abuse. He says the legislation is designed to address suspected exploitation without removing safeguards, and argues that institutions need clearer authority to act when warning signs appear.

Fraud risks and sector impact

Wagner says senior citizens in Missouri and across the country are frequently targeted by financial fraud, framing the bill as an added line of defense for vulnerable investors. She says the measure would also apply to investment companies such as mutual funds, allowing them to pause a transaction when there is a reasonable belief it stems from exploitation.

She cites Federal Trade Commission data showing fraud against people over age 60 increases by nearly 400% between 2020 and 2024, with total losses for American seniors reaching almost $2.5 billion. The proposal signals tighter anti-fraud expectations for the financial sector as lawmakers push firms to play a more active role in stopping suspicious transfers before customer savings are depleted.

Our earlier coverage of the House oversight subcommittee’s probe into alleged waste, fraud and abuse in the Supplemental Nutrition Assistance Program (SNAP) outlined lawmakers’ concerns about improper payments and trafficking schemes. The report also noted federal efforts to gain broader access to state beneficiary and transaction records, with some states’ noncompliance cited as a barrier to quantifying losses and improving fraud detection.

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