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Older Americans are often targets of financial scams by bad actors, and New York Gov. Kathy Hochul (D) wants to see her state’s Legislature address it more directly.
Hochul is seeking to mandate specialized training for bank tellers and other banking professionals in New York to identify and stop instances of elder financial abuse before they take place, according to a report from Newsday.
Hochul announced her efforts as part of an executive budget proposal in January. Last month, her effort received backing from the New York state affiliate of AARP, the influential senior advocacy group. The chapter issued a letter on Feb. 12 to state Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins to take up the measure as quickly as possible.
The measure would “train bank tellers and other bank employees; investment brokers and advisers; and others dealing with the finances of older New Yorkers, in how to spot exploitation,” Newsday reported. “These financial agents would then be legally empowered to put a hold on suspicious spending and refer the case in question to law enforcement.”
Following a referral, consumers would be notified and the flagged transaction would be delayed for an initial period of 15 days, with a possible extension to 40 days if there is “continued reasonable belief of exploitation,” according to official language in the budget proposal reviewed by HousingWire‘s Reverse Mortgage Daily.
Beth Finkel, the director of AARP New York, said at the time the letter was sent that the increasingly sophisticated technology and tactics of scammers necessitates a more comprehensive approach by governments.
“Scammers are using high-tech tools to target older people for financial fraud schemes, often obtaining personal information through social networking sites and internet searches,” Finkel said.
“This leaves our older loved ones and friends open to thieves who never have to show themselves to deplete a victim’s bank accounts. We applaud Governor Hochul for stepping up for some of our state’s most vulnerable residents by proposing an initiative that can prevent scammers from stealing from older New Yorkers.”
Data from the FBI indicates that New Yorkers ages 60 and older lost as much as $203 million to scamming activity in 2023, with $38 million in losses for people living on Long Island alone.
Elder financial exploitation continues to cost older consumers across the world. Just this week, a case involving alleged scammers in Canada — which targeted older Americans — saw 25 Canadian nationals charged and resulted in 23 immediate arrests.
