New Consumer Fraud Restitution Fund Offers Hope for Minnesota Scam Victims

Minnesotans who have been defrauded now have a better chance of financial recovery, thanks to a new bipartisan law championed by AARP Minnesota. The Consumer Fraud Restitution Fund, the first of its kind in the nation, was signed into law in 2025 with strong bipartisan support. This innovative fund will help victims of fraud recover lost money—especially in cases where scammers are untraceable or bankrupt.

Fraud is a fast-growing industry that steals billions of dollars from Americans each year and older adults often hit the hardest. Until now, victims in Minnesota had few options for getting their money back. But with the creation of the Consumer Fraud Restitution Fund, that’s changing.

The fund will collect up to $5 million annually from civil penalties paid by companies and individuals found guilty of consumer fraud. These funds will be managed by the Minnesota Attorney General’s Office and used to compensate victims when direct restitution from the scammer isn’t possible.

According to the Federal Trade Commission, Minnesotans reported $144.6 million in fraud losses in 2024 alone. The emotional and financial toll is devastating—especially for older adults who may be living on fixed incomes.


How does the Consumer Fraud Restitution Fund work? 
The fund gives the Attorney General's Office a powerful new tool to help Minnesotans recover money lost to scams. Previously, civil law enforcement actions—like injunctions and monetary orders— rarely resulted in victims getting their money back and were insufficient in stopping scam operations. Now, when the Attorney General brings a public enforcement case and a court confirms that fraud occurred, the Consumer Fraud Restitution Fund can be used to return money to victims, even if the scammers can’t be located or don’t have assets. This also encourages more people to report scams, knowing there is a chance they could be made whole.


Where does the money for fraud victims in the Consumer Fraud Restitution Fund come from? 
The Attorney General routinely wins various civil penalty payments for the State of Minnesota through consumer fraud enforcement cases each year. For instance, if a tech company deceives consumers in internet sales, it must pay civil penalties. Previously, much of this money went into the state’s general fund. Under this new law, up to half of the excess penalties will now go into the Consumer Fraud Restitution Fund. These funds will be used to compensate victims in cases where direct restitution from the scammer isn’t possible and money is available in the Consumer Fraud Restitution Fund.


What should I do if I've been scammed? 
The fund was created in 2025 and is still being set up. It currently does not have money available, and the Attorney General’s Office is working on the process for the distribution of restitution. Minnesota is the first state in the nation to create a fund like this, so it may take extra time to implement. In the meantime, the most important step is to report the scam to the Attorney General’s Office through their website using the “Consumer Assistance Request Form" or call the AGO using the phone numbers listed below.

Office of Minnesota Attorney General Keith Ellison
(651) 296-3353 (Twin Cities Calling Area)
(800) 657-3787 (Outside the Twin Cities)
(800) 627-3529 (Minnesota Relay)

Get Tips to Avoid Scams & Fraud

Get tips from the AARP Fraud Watch Network™ to spot and avoid scams like identity theft, investment fraud and holiday scams, as well as ongoing updates from resources like Watchdog Alerts and a scam-tracking map that provides real-time alerts from law enforcement in your state.

Minnesotans are also encouraged to use the AARP Fraud Watch Network™, a free resource available to everyone. It offers:

• Watchdog Alerts on the latest scams
• A toll-free helpline at 877-908-3360
• Online support sessions for emotional recovery
• A Scam Tracking Map to see what’s happening locally
• Educational tools like webinars, tip sheets, and the podcast The Perfect Scam

Whether you’ve been targeted or simply want to stay informed, the Fraud Watch Network empowers Minnesotans to spot scams early and take action. Learn more at aarp.org/fraudwatchnetwork.