AARP NY Highlights Urgent Need to Address Elder Scam Crisis in New York

AARP NY Highlights Urgent Need to Address Elder Scam Crisis

In 2023, older adults in New York lost an astonishing $203 million to scams, according to AARP New York. With this staggering figure amounting to approximately $23,200 every hour, the organization is calling on legislative leaders to take decisive action to combat this issue that affects thousands of vulnerable individuals.

A news conference held at the New York State Capitol brought together a coalition of stakeholders, including state legislators, law enforcement representatives, and experts from the credit union sector. Their aim was to address the growing crisis of financial exploitation targeting the elderly. The statistics are compelling and distressing; over 4,300 New Yorkers aged 60 and over reported losses averaging around $47,000 each in 2023.

Beth Finkel, the Director of AARP New York, expressed her outrage at these figures, noting that many victims had worked tirelessly to save money for retirement only to lose those hard-earned funds through scams. Scammers, realizing that older adults often have accumulated savings, employ increasingly sophisticated tactics to gain access to their financial resources.

AARP New York calls upon Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie to incorporate essential fraud prevention measures into the state’s final budget. These protective measures would empower financial institutions to recognize indicators of financial abuse and intervene to protect older adults from fraud.

Finkel emphasized the vital role that banks must play, stating, "Big banks cannot remain passive in this crisis; they should be working alongside the Governor, the Legislature, and AARP to ensure that their customers — particularly senior citizens — have the protections they need."

Governor Hochul has already included a critical component in her executive budget: a program designed to train bank tellers and other financial institution employees to identify signs of financial scams. Under this proposal, if suspicious activity is detected, these employees would have the authority to put a hold on the transaction while contacting law enforcement for further investigation.

One prevalent scam targeting older adults is the infamous “grandparent scam,” where perpetrators masquerade as a distressed grandchild requesting urgent financial assistance. Older victims may rush to withdraw cash, often at the behest of the scammer, who typically prefers untraceable payment methods such as cash, gift cards, or wire transfers, which complicate recovery efforts.

Senator Cordell Cleare, Chair of the Senate Aging Committee, praised AARP’s relentless focus on eliminating elder fraud, stating, “It is disgraceful that the elderly, who have contributed so much to our society, are victims of such heinous crimes.” He highlighted the need for proactive solutions, including the establishment of an Interagency Elder Justice Task Force.

Similarly, Assemblymember and Aging Committee Chair, Rebecca A. Seawright, voiced her concerns, stating that scams add further strain to older adults who already face challenges related to housing, food, and healthcare. She reinforced her commitment to investing in protective measures for the state’s senior population, stating, “We must mobilize every resource to safeguard the well-being of our aging citizens.”

Assemblymember Gabriella A. Romero echoed this sentiment, acknowledging the heartbreaking prevalence of elder fraud while lauding AARP’s campaigns aimed at providing protection for older New Yorkers. Romero affirmed her support for legislative initiatives that seek to reduce the financial harm inflicted upon this vulnerable demographic.

New York State Police Superintendent Steven G. James also highlighted the growing sophistication of scams targeting seniors. By the time victims report fraud, the funds have often already been transferred. The proposed legislation will grant financial institutions the authority to delay payments when fraud is suspected, ultimately protecting savings and enhancing law enforcement's ability to apprehend suspects.

NYS Chief Cyber Officer Colin Ahern added that the alarming rise in financial exploitation underscored the urgency of implementing proposed legislation allowing financial institutions to take preventive actions against such crimes.

Shane Shoemaker, President of Financial Crimes Bridge, praised initiatives aimed at combatting financial exploitation and reducing the risks for vulnerable adults.

As these sobering statistics of elder fraud continue to dominate headlines, AARP New York is steadfast in its commitment to rallying community, state, and consumer advocates together to equip older adults with the necessary protections against fraudsters. Connecting with AARP New York can be accomplished via various social media platforms like X, Facebook, and LinkedIn to stay informed and engaged in these critical conversations.

About AARP

AARP stands as the nation’s largest nonprofit, nonpartisan organization focused on empowering individuals 50 and older. With a broad presence that addresses community needs and advocates for issues such as health security, financial stability, and personal fulfillment, AARP aspires to enrich the lives of millions across the nation. AARP also educates consumers and promotes quality products and services that earn the AARP name. For more information, please visit AARP's website.