South Iowa News

DES MOINES — U.S. Representative Zach Nunn (IA-03) introduced bipartisan legislation aimed at addressing financial scams, particularly “pig butchering” scams, targeting retirees. The Empowering Law Enforcement to Combat Financial Fraud Act, co-led by U.S. Representatives Josh Gottheimer (NJ-05) and Scott Fitzgerald (WI-05), seeks to bolster law enforcement investigations into these fraudulent activities.

“Scammers prey on Iowa retirees and steal their hard-earned money. Just last year, the Iowa Attorney General’s office received more than 13,000 financial fraud reports resulting in approximately $42.6 million in financial losses,” said Rep. Nunn. “Iowa retirees shouldn’t have to worry about fraudsters. And if they are scammed, law enforcement should have the tools needed to bring their case to justice.”

The rise of technology has enabled scammers to develop new methods for defrauding vulnerable and elderly Americans. In 2021, individuals over 70 experienced a median loss of $9,000 compared to $2,400 across all age groups.

“Fraudsters are using every trick in the book — social media, email, and phone — to swindle Americans out of billions of dollars every year. We need Twenty-First century tools to crack down on the criminals behind these scams,” said Rep. Gottheimer. “My new bipartisan bill, the Empowering Law Enforcement to Combat Financial Fraud Act, which I’m co-leading with Congressman Zach Nunn, will ensure that law enforcement can access cutting-edge technologies to stop online scams and keep our communities safe.”

A prevalent scam known as “pig butchering” involves convincing individuals, often retirees, to invest in fake opportunities before stealing their funds. In 2022 alone, such scams resulted in reported losses exceeding $1 billion. The American Association of Retired Persons (AARP) has issued warnings urging Americans over 50 to be vigilant against these schemes.

“Financial fraud crimes increasingly involve sophisticated technology to scam Americans out of their hard-earned dollars,” said Rep. Fitzgerald. “I am proud to co-lead the Empowering Law Enforcement to Combat Financial Fraud Act which will give state and local law enforcement the resources they need to utilize blockchain to track criminals who attempt to defraud Wisconsin seniors and families.”

Blockchain technology offers law enforcement a critical tool due to its permanence and transparency. For instance, in November 2023, the U.S. Department of Justice used blockchain technology to freeze approximately $225 million linked to an international human trafficking syndicate responsible for “pig butchering” scams.

Despite these advances at the federal level, state and local officers often lack sufficient resources and training in blockchain tracing skills necessary for investigating such crimes effectively.

The bipartisan Empowering Law Enforcement to Combat Financial Fraud Act aims to provide state and local law enforcement with federal grant funding for investigating financial fraud and “pig butchering” scams against retirees. It also facilitates federal assistance with blockchain tracing tools.

The bill is supported by AARP, the Financial Technology Association, the REACT Task Force, the Digital Chamber, the Iowa State Police Association, and the National State Police Association.

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