The 2025 Minnesota Legislature passed, and the governor signed, legislation to create a Consumer Fraud Restitution Fund. The fund will make it easier for Minnesotans who have been victims of scams or fraud to recover their losses. Under the law, up to $5 million will be available each year to compensate fraud victims. The fund will be financed by dollars collected by the Attorney General’s Office from penalties paid by the individuals and companies that perpetrated the fraud.
AARP Minnesota championed the bill. We asked Cathy McLeer, state director of AARP Minnesota to answer questions about the fund.
Q. What was the impetus for AARP Minnesota’s support for the legislation?
McLeer: Minnesota consumers lost over $144.6 million to fraud in 2024, with older adults hit hardest. Victims often had no way to recover their money because scammers are often untraceable or bankrupt. Civil enforcement tools like injunctions rarely resulted in restitution. AARP Minnesota championed the Consumer Fraud Restitution Fund to give victims a path to financial recovery and restore dignity after devastating losses.
Q. How are older adults affected by scams and fraud?
McLeer: Older adults are disproportionately impacted. Nationally, people in their 70s reported a median loss of $1,000 per scam, compared to $417 for those in their 20s.
Q. Can you give some examples of how people have been scammed?
McLeer: Here are a few types of scams we are seeing:
- Gift card scam: A couple nearly paid $2,000 after receiving an email impersonating their pastor.
- Dental fraud: A woman prepaid $15,000 for dental implants before her dentist’s license was suspended and she lost her money.
- Grandparent scam: A Maplewood man lost $20,000 after a caller posed as his grandson needing legal help.
- Romance scam: A widow wired $85,000 to someone posing as a retired doctor.
Q. What is the extent of the problem?
McCleer: Fraud is a fast-growing industry. Nationally, Americans reported $12.5 billion in losses in 2024, up 25% from the previous year. Older adults lost the most: victims in their 60s reported $1.18 billion in losses. In Minnesota, the FTC logged 31,370 fraud reports in 2024, totaling losses of nearly $147 million.
Q. How will the legislation help?
McLeer: The Consumer Fraud Restitution Fund means people will get restitution when scammers can’t pay (e.g., they are bankrupt or overseas). The fund uses civil penalty money — previously sent to the state’s general fund — to compensate victims. Knowing that the fund is available encourages victims to report, giving them hope of recovery. We also think that the fund will motivate the Attorney General’s Office to aggressively pursue fraud cases.
Q. How will it work?
McCleer: The Attorney General’s Office will allocate up to 50% of civil penalties it collects from consumer fraud enforcement actions to the fund, capped at $5 million annually. Victims would qualify for compensation after a public enforcement case confirms fraud and a court order is issued. The Attorney General’s Office will oversee the payment process.
People can report fraud to the Attorney General’s Office online or by phone.
Online:
Use the Consumer Assistance Request Form available on the AG’s official site. This is the fastest way for the office to receive and process complaints.
By phone, call:
- Twin Cities: (651) 296-3353
- Toll-Free (Outside Twin Cities): 1-800-657-3787
- Minnesota Relay (TTY): 1-800-627-3529
Q. When can people expect to be able to access the fund?
McLeer: The Consumer Fraud Restitution Fund began collecting civil penalties in 2025 after the law was signed. Minnesota is the first state in the nation to create a fund like this, so it may take extra time to implement. Fraud victims should continue to report fraud to the Minnesota Attorney General’s office so their cases are documented. This helps enforcement and may support future restitution eligibility.
Q. How can people protect themselves from scams and fraud?
McLeer: AARP Fraud Watch Network™ recommends:
- Pause. Reflect. Protect. If it sounds too good to be true, it probably is.
- Never pay with gift cards or wire transfers: Legitimate businesses and government agencies don’t ask for these.
- Verify before acting: Call the source directly using a trusted number.
- Secure your information: Use strong passwords, enable two-factor authentication, and shred sensitive documents.
- Sign up for Watchdog Alerts and call the Fraud Watch Network Helpline at 877-908-3360 for free support.