Scam victims payback could come from new restitution fund

Scam victims could claw back some of the money they lost even if they can’t find the scammers, if a new bill becomes Minnesota law.

Scam paybacks?

Take it back:

It would basically work like this:

If the state catches a scammer and a court orders penalties above and beyond restitution, half of that money would go into a fund to pay victims who otherwise have no chance to get their money back.

"It's not easy to sit here and talk about being scammed," said Dennis Anderson of Maplewood.

Anderson is hoping his embarrassing story can help people in his same shoes.

Scammers called him posing as his grandson, who had just caused a serious car crash, and the public defender trying to get him out of trouble.

"When the 'public defender' said he needed $20,000 in cash for bail immediately, I didn't wait to act," Anderson said. "I was desperate to help my grandson."

Almost as soon as Anderson sent the $20,000, the scammers came for more, saying the crash victim was pregnant, and she had a miscarriage, so they needed more money.

Even invisible scammers?

Maybe money back:

He stopped it there and the police even caught the courier who came to pick up the extra money, but they never caught the crooks and Anderson was down $20,000.

Minnesotans lost about $130 million to scammers in 2024, and usually without being able to catch whoever did it.

"They're left without any money, and they're left, as we've heard, tens of thousands of dollars in the hole," said Jessica Whitney, a prosecutor in the Minnesota attorney general's office.

Some of the scammers do get caught, though.

And under a new bill, their punishments would include paying into a Consumer Fraud Restitution account.

Money source

Caught scammers pay:

People who can prove they got scammed but couldn’t find the scammer could get paid back from the restitution account.

"The Consumer Fraud Restitution Fund would have been a life-saver," Anderson said. "Not just for me, but for many others who have fallen victim to this heartless scam."

There’s still work to be done on the bill, but it has bipartisan support, and it’s a priority this session for the AARP, so there’s a decent chance it becomes law.

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