The Continuing Problem of Elder Abuse

According to a 2023 report from AARP, some $28.3 billion is stolen from older adults every year.  About 72% of that, $20.3 billion, is taken by a friend, a family member, or a caregiver, while the remaining $8 billion is stolen by strangers.  Only $7.8 billion of the thefts are reported to the authorities.  The methodology behind these estimates is complicated, given the low rate of reporting, and the losses may be higher or lower than the report’s conclusions. Nevertheless, the thefts run into the billions of dollars, and this has been an important issue for the elderly for many years.

A bipartisan bill has emerged in Congress on the subject, the Financial Exploitation Prevention Act.  However, the legislative remedies included in the bill are limited.  Certain investment companies and transfer agents, including mutual funds, would be allowed to delay redemption of securities when there are suspicions of financial exploitation. How to spot financial exploitation is not specified. The Securities and Exchange Commission would be charged with developing new ways to attack elder abuse through legislation and regulation, which seems to be a deferral of meaningful action to the future.

But there is no magic bullet for the government to fire at this problem. Older adults must have help managing their finances, and the first line of defense is trusted family members.  Adding new layers of paperwork may head off some financial exploitation, but it may also make it harder for the honest agents to do the job that needs to be done for the elder person.  Children need to be actively involved in the financial life of their parents, so as to spot problems early before they become serious.

A concern that one hears repeatedly from older Americans is the frequency of spam telephone calls, sometimes dozens in a day, often robocalls.  Unfortunately, the “Do Not Call” legislation has not been as successful as hoped, and new filtering strategies for telecommunications need to be explored.

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