New Legislation to Protect New York Seniors from Exploitation and Abuse

There were many important bills passed at the end of the legislative session to protect senior citizens from abuse and exploitation, as well as streamline the estate planning process to give New Yorker’s greater peace of mind.

Elder abuse is an under reported crime that preys on the people who worked so hard to build our communities. These balanced pieces of legislation will help health care workers and bank employees identify abuse and fraud so they can notify the proper authorities. With a federal administration that’s intent on making big cuts to social services programs and regulatory protections, it’s important that we take steps in New York to ensure seniors can lead safe, independent, healthy lives.

Elder abuse is a far too common occurrence. In New York State, approximately 260,000, or 1 in every 13 seniors, experienced some form of elder abuse in the previous year, with financial exploitation representing the most common form of abuse.[1] It’s essential to address this issue now as aging baby boomers are projected to double the number of older adults by 2030, potentially increasing the prevalence of elder abuse.[2]

One Assembly bill would require the state Office for the Aging to create guidelines to help health care providers and employees identify abuse and maltreatment of senior citizens (A.8258-A). Doctors and nurses often have long-term, trusting relationships with their patients and are in a unique position to identify signs of abuse.  This bill passed both houses and will be considered by the Governor in the coming months.

Another measure directs the superintendent of the state Department of Financial Services to develop training materials to help bank employees recognize and report signs of financial exploitation (A.6395). Further, the bill would protect banks and other financial institutions from state liability when reporting suspected financial abuse in good faith.  This bill passed in the Assembly.

It’s critical that we empower the people who interact with older New Yorkers on a regular basis to do and say something if they suspect that a customer is being scammed. These measures ensure that senior citizens have additional allies who are looking out for their financial well-being.

To make sure seniors are aware of all the banking options available to them, the Assembly passed a measure that requires banks to notify customers seeking to open a joint account if the bank also offers convenience accounts (A.8217-A). Unlike joint accounts which grant the co-signer the right of survivorship and thus all the assets of the account if the other signer passes away, convenience accounts allow the other person on the account to make basic transfers or withdrawals which must be in the best interest of the main account holder, simplifying check writing and bill paying. If the holder of a convenience account passes away, the money in it becomes part of their estate. In addition, it’s easier to prosecute those who exploit a convenience account, rather than a joint one.  This bill passed in the Assembly and was sent to the Senate for consideration.

The final piece of legislation streamlines the estate planning process by simplifying the power of attorney (POA) form to a single document with more straightforward, transparent language (A.8120-B). This will not only greatly simplify the process of executing a POA, but will also help ensure that third parties honor a valid POA. The failure of a third party to honor a valid POA can have dire financial consequences for seniors. Therefore, the bill would also allow the courts to issue sanctions against third parties who unreasonably and unfairly refuse to honor a valid POA form. This too passed in the Assembly and was sent to the Senate.

As a member of the aging committee, I was honored to cosponsor and vote for these important pieces of legislation

As times change and technology and services evolve, we need to make sure we’re not leaving anyone behind, especially the seniors who have done so much for their families and our communities and deserve to live with dignity and respect. This legislation will ensure our regulations and protections keep up with and adapt to society so that we can help prevent elder abuse before it happens.

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New Legislation to Protect New York Seniors from Exploitation and Abuse

Working to stop senior exploitation

Brokers and other financial professionals have been added to the list of those charged with watching for suspected exploitation of older and vulnerable people.

They were included in AB51, joining a long list of professionals from law enforcement to medical providers and even bankers in an effort to stop the growing problem of seniors in particular being exploited by everyone from caregivers to scam artists, so-called friends and, most disturbingly, their own children and other family members. 

“Often the children have the power of attorney and mom or dad trusts them,” said Carrie Embree, Elder Rights Chief for the Nevada Division of Aging Services. “We see it happen for all sorts of reasons and we don’t understand.” 

While the division is concerned with a laundry list of abuses ranging from simple neglect to sexual abuse, financial exploitation is the most common. And, according to a Journal of General Medicine study in 2014, more often than not, the perpetrator was a relative. 

The problem isn’t rare either. The Certified Financial Planner Board of Standards has reported up to 77 percent of their members say they have experience with a senior subjected to financial exploitation. 

Secretary of State Barbara Cegavske, whose staff will set up and monitor the training now required of financial advisers, managers and brokers, said financial abuse costs victims an estimated $2.9 billion a year nationwide. She said those brokers, like other financial professionals such as bankers, must now attend training to learn the warning signs of exploitation and what to do if they are suspicious.

Diana Foley, securities administrator for the Secretary of State, said there was “kind of a hole” in the list of those who have to report suspected abuse.” 

Embree said they were added to the list because those financial managers and advisers often have a long-standing relationship with the potential victims and were in a position to spot something wrong.

“They are in a unique position where they can see if when there are some uncharacteristic financial transactions happening,” she said. 

She said that could be anything from a series of withdrawals, showing the senior may be starting to give away large amounts of money. 

“If they’ve known them for six or eight years then suddenly they start doing that, it could be a red flag,” she said. 

A report by the National Center on Elder Abuse said financial exploitation can take many forms including cashing a vulnerable person’s checks without permission, forging their signature on documents, stealing possessions or coercing a senior into signing documents such as contracts, a will or power of attorney. 

Financial theft, the report states, is typically between $1,000 and $5,000 per transaction but can be more extensive ranging up to real estate transactions. 

And it’s far more common than most believe. 

A study by Met Life Insurance estimated there are as many as a million victims a year in the U.S.

In Fiscal 2014, there were 6,033 allegations of exploitation and abuse in Nevada, according to Embree. She said 1,262 of them were confirmed cases. 

In that total were 272 reports in Carson City, 130 in Douglas and 115 in Churchill counties. Substantiated reports total 108 in Carson, 42 in Douglas and 50 in Churchill. 

More disturbingly, she said, experts believe for every case reported another 23 go unreported, often because senior victims are embarrassed or just don’t want to accuse a loved one. 

Sometimes, she said, they just don’t know who to call for help. 

Nationally, according to Adult Protective Services, the typical victim is 79-89 years old, white, female, frail and cognitively impaired. 

“She is trusting of others and may be lonely or isolated,” the agency report states. 

Embree said the social isolation is a key risk factor. 

If an elder is socially isolated or withdrawn, they’re by themselves,” she said. 

That opens the door for any one from a long time friend to a family member or neighbor to gain their trust. 

She said poor physical health, dementia and even substance abuse are risk factors that make those seniors even more vulnerable. 

Family members, especially children, are often the perpetrators and Embree said it’s often because the child involved has “issues going on.” 

“Substance abuse issues can really intensify the exploitation,” she said. 

They need the money to pay for their drug habit or a gambling habit or something similar. As a result, 1,288 of the 5,667 case reports involved the victim’s child, 507 their spouse and 562 another relative.

But caregivers are also high on the list, accounting for 636 of those complaints. 

Caregivers, some licensed but others not — like a friend or neighbor who volunteers to help out — too often take advantage of the senior victim. 

The key, according to Embree, is to be aware when something involving a senior or other vulnerable person you know just doesn’t look right and report it. 

That report can be made either to the Aging and Disability Services Division at 888-729-0571 or to local law enforcement. 

That prompts Elder Protective Services to send a social worker to check the allegations out and see if there’s enough evidence to believe something is happening. 

“Even if you don’t know, we encourage people to report,” she said.

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Working to stop senior exploitation