2023’s Big Leap: Shielding Older Adults From Financial Crimes

By Michael Pessman

The financial exploitation of older people is a distressing and often overlooked problem, but in 2023 it’s one that received significant legislative attention in the United States. More than 1 in 6 Americans were 65 or older just three years ago, and their numbers are growing faster than those under age 65. With a graying population, protecting these vulnerable members of society is more imperative than ever. 

During the past year, the number of states passing legislation to address concerns about financial exploitation of older adults reached 34, and 17 states enacted specific laws or adopted resolutions to combat financial abuse against seniors. 

Older adult financial exploitation involves the illegal or improper use of a person’s funds, property or assets. This type of abuse often goes unnoticed and unreported; many victims suffer in silence. Family members, unfortunately, are frequently the perpetrators of such exploitation, taking advantage of the trust and reliance their aging relatives placed in them.

Each year, older Americans lose an estimated $28.3 billion because of financial exploitation, according to a report by AARP. In addition, the report indicates that 87.5% of adults ages 60 and older who are victimized by someone they know do not report these incidents to authorities. This figure actually may be much higher because of underreporting, however.

Financial exploitation is particularly prevalent among individuals suffering from dementia or other cognitive impairments. Often, family members justify their actions on the basis that they are “helping” or managing the finances of their relatives.

Several states took action in 2023 in recognition of the severity of this issue. The new laws are designed to improve protections for older adults, to clarify guidelines for legal guardians and caregivers, and to establish stricter punishments for those who violate them. Here are some of the areas these measures address:

Enhanced reporting and monitoring: Several laws were passed to improve the reporting mechanisms for allegations of financial abuse. The regulations include mandatory reporting requirements for professionals who work with older people, such as bankers, health care providers and social workers.

Tougher penalties for perpetrators: Several states have increased penalties for those who are found to have exploited older individuals financially. The punishment could include longer prison sentences and higher fines, particularly if the abuse involves substantial sums of money or results in significant financial harm to the victim.

Educational programs: A number of states have implemented programs aimed at educating potential victims and the general public about the problem. These programs aim to raise awareness of the signs of financial exploitation and emphasize the importance of safeguarding older people’s assets and rights.

Legal and financial support services: A substantial amount of funding and other resources were allocated in 2023 to provide legal and financial counseling to help older adults protect their assets and seek justice if someone exploits them. New Hampshire, for example, has increased the number of cases of financial crimes against older adults that the state investigates and prosecutes.

Although these legislative efforts represent significant progress, there are still challenges to overcome. Critics argue that additional resources are needed to support victims and to enforce these laws effectively. A more cohesive approach to addressing the issue, these critics point out, requires better collaboration between state agencies, financial institutions, and nonprofit organizations.

Still, the legislative actions taken in 2023 are positive steps toward curbing a serious risk for older adults. It is imperative that we continue to raise awareness about this issue and ensure that states effectively implement and enforce laws to deal with the problem. Society must protect those who are vulnerable and ensure that they can live with dignity and security.

It is evident from the legislative achievements made this year that there is growing recognition of what has been a somewhat silent epidemic. The involvement of family members in such crimes adds a layer of complexity and betrayal to the situation for many victims. We must make sure that these laws are more than just words on paper and are actively enforced. 

As the fight against financial exploitation continues, legislators, professionals, community organizations and families must work together to ensure that no one preys upon older adults. They deserve our respect and protection.

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2023’s Big Leap: Shielding Older Adults From Financial Crimes