Bill to prevent fraud on elderly, disabled opposed by financial
institutions
[May 14, 2026]
By Sean Reed | The Center Square
(The Center Square) – Based on the multiple billions of dollars lost to
scams and exploitation of elderly and disabled adults each year,
victims, lawmakers and interest groups want to move legislation that
would require Illinois banks to provide new protective measures to
prevent fraud.
Rep. Katie Stuart, D-Collinsville, is the sponsor of House Bill 4767,
which would create new requirements for banks and credit unions to
report potential financial exploitation of elderly and disabled adults.
Reports under the legislation would be sent to the Illinois Department
on Aging, the agency behind the bill.
IDoA Director Mary Killough said financial exploitation is one of the
most common forms of elder abuse reported in the state of Illinois, and
$4.9 billion was reportedly lost by adults over 60 in 2024 – according
to FBI data.
“Our legislation allows financial financial institutions to temporarily
pause suspicious transactions and contact trusted representatives when
exploitation is suspected,” Killough said. “We have the responsibility
to ensure older adults can age with dignity and security not fear,
preventing financial exploitation before it occurs is one of the most
effective ways to do that.”
Stuart said she thinks the bill is especially pertinent due to reports
of fraud becoming more sophisticated.
“If they don't have a clear picture of everything that's going on, this
fraud is getting more sophisticated, much easier to be duped, much more
devastating, much more quickly getting more information and other things
about vulnerable people,” Stuart said.
The children of two fraud victims spoke in support of the proposal as
well.
One man named Tony – who did not fully identify himself at the request
of his 83-year-old father, who wanted to avoid embarrassment – said his
father fell victim to a phone scam that drained about $69,000 from his
savings in a little more than a week.
He said the case involved the scammer impersonating a U.S. Marshal.
Lori Hendren with AARP Illinois said her organization sees devastation
from such scams.
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A smartphone rests on top of credit cards on a table. Photo: Dave
Mason / The Center Square
“This is not about money, it impacts individuals' independence,
their health, housing stability, sense of security, and overall
quality of life. For many older adults, their family and or their
caregivers, losing hard-earned savings means losing control of their
future,” Hendren.
The bill has some opposition in financial institutions.
Stuart said after a long negotiation process, she was able to add
language to the bill that accounted for their concerns about who on
staff would be responsible for reporting potential fraud.
Despite the negotiations, bank and credit union groups still oppose
the bill over the new requirements that would be imposed on their
operations.
As for the cost of implementing the fraud prevention plan, Killough
said the department doesn’t expect to need more resources.
“We already spend a lot of money in that direction. I don't think
it's going to add any more, but what we're hoping for is when we
investigate for abuse, it's not for a crime, it's to ensure that the
individual receives the services that they need so they won't be
victimized,” Killough said.
The bill was introduced in early February, and currently awaits
progress in the House of Representatives.
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