In October 2023, Dennis from Maplewood received a phone call that would change his life. The voice on the other end claimed to be his grandson, urgently needing $20,000 for bail after a car accident with a pregnant woman. The supposed public defender provided convincing details, making the story seem heartbreakingly real. Desperate to help, Dennis withdrew the money and sent it, only to find himself ensnared in a cruel scam.
The situation worsened when the “public defender” called again, claiming the pregnant woman in the crash had miscarried and his grandson now faced manslaughter charges. They said they had negotiated a settlement and would need $15,000 delivered immediately. Running out of funds, Dennis turned to his older brother, who initially provided the money but grew suspicious. Dennis then called his grandson directly and discovered he was safe at home and had never been in an accident. Despite the situation being reported to the police, Dennis never recovered the initial $20,000.
A fast-growing fraud industry steals billions of dollars from U.S. consumers every year, with older adults often being hit the hardest. In the first three quarters of 2024, the Federal Trade Commission received more than 22,000 fraud reports from Minnesota consumers, with losses totaling nearly $103 million. Currently, there are few viable options for recovering money lost to scams. AARP Minnesota is pushing for a state-level Consumer Fraud Restitution Fund to help victims recover their losses. This fund would use penalties from big company wrongdoers to pay back those who can’t get their money back.
Fraud often goes unreported, and even when reported, it frequently remains uninvestigated. As a result, millions of victims lose billions of dollars each year, with little hope of recovering their money or seeing the perpetrators brought to justice. The Consumer Fraud Restitution fund (S.F. 447, Rest) would motivate the Attorney General to sue scammers, help victims recover their money and encourage scam victims to report crimes.
Each year, the Attorney General collects various civil penalty payments from consumer fraud enforcement cases. For example, if a tech company deceives consumers in internet sales, it must pay civil penalties. When victims are identified, the collected money is used to compensate them. In most cases, excess funds go into the state’s general fund. The restitution fund would be financed by these civil penalty payments and directed to the state’s general fund.
AARP is dedicated to fighting fraud by educating the public about current trends, advocating for stronger consumer protections, and enforcing laws. The AARP Fraud Watch Network™ offers free information, tools, and tips to help you safeguard your hard-earned money from fraud and scams. Remember, if you’ve been targeted by scams or fraud, you are not alone.
- Stay informed with AARP’s reliable, up-to-date insights, alerts, and fraud prevention resources.
- Find support withthe AARP fraud helpline, 877-908-3360, a free and available to anyone, and the online support sessions for further emotional support.
- Have a voice by joining AARP Minnesota for The People’s Rally: Minnesotans Speak Out Against Fraud, on Thursday, February 13, from 10 to 10:30 a.m. Share your experiences, unite with others, and advocate for a fraud restitution fund. AARP advocates for laws and regulations to stop scams and shut down fraud attempts. Share your concerns and help shape the public discussion on fraud.
To learn more and get involved, go to aarp.org/MNfraud.
