Following a record-breaking year of consumer fraud losses, Senators Kirsten Gillibrand and Elizabeth Warren are demanding accountability for drastic cuts to federal agencies designed to protect Americans—particularly seniors—from financial scams. In a July 9 letter to the Government Accountability Office (GAO), the senators called for a full investigation into the Trump administration’s actions, which they say have severely undermined efforts to combat fraud.
In 2024, Americans reported more than $12.5 billion in losses due to scams. The toll was especially steep for older adults, who lost an estimated $4.8 billion, according to FBI data. These staggering figures come amid sweeping staffing cuts at agencies like the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and the Federal Bureau of Investigation (FBI).
Key protections slashed, say senators
The senators’ concerns stem from an April 2025 GAO report titled Consumer Protection: Actions Needed to Improve Complaint Reporting, Consumer Education, and Federal Coordination to Counter Scams. That report outlined serious gaps in federal oversight and stressed the need for better coordination across agencies to address fraud. But instead of bolstering protections, the Trump administration has taken steps in the opposite direction, Gillibrand and Warren argue.
- In April 2025, nearly 1,500 CFPB employees—about 90% of the agency—were fired.
- The administration’s new “Department of Government Efficiency” (DOGE), led by Elon Musk, has aimed to slash $1 trillion in federal spending, largely targeting agencies that serve working-class Americans and vulnerable populations.
- DOGE’s reported tactics include pressuring public servants to resign, stalling investigations, and hampering interagency cooperation.
“President Trump allowed an out-of-touch billionaire to slash the very agencies that protect Americans from scams,” the letter states. “We ask GAO to examine the impact of these severe cuts.”
Personal toll on seniors
The senators highlighted testimony from scam victims, including an older woman who lost $39,000 and could no longer afford to keep her refrigerator and stove running. Another case involved a man who lost his job, self-confidence, and health after falling victim to fraud.
“These are not just numbers,” Gillibrand and Warren emphasized. “These are life-altering losses for seniors who worked hard and saved their entire lives.”
GAO urged to assess long-term damage
Gillibrand and Warren have asked the GAO to:
- Assess how staffing cuts and restructurings since January 2025 have affected five key agencies: the CFPB, FTC, FBI, Department of Treasury, and Federal Reserve.
- Determine the impact of those changes on the federal government’s ability to implement GAO’s 16 fraud prevention recommendations.
- Evaluate whether efforts to restore agency operations have been successful, and what barriers exist to rebuilding lost capacity.
The senators acknowledged that a full assessment should wait until affected agencies submit their formal action plans to Congress, as part of GAO’s standard “180-day Letter” review process.
What’s next?
With elder fraud on the rise and federal oversight in disarray, Gillibrand and Warren’s request signals a growing urgency in Congress to hold the administration accountable. If GAO confirms that anti-fraud capabilities have been weakened, it could set the stage for legislative efforts to rebuild and reinforce consumer protection infrastructure.
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