Albany, N.Y. - Thirty New York non-profit organizations, aging advocates, financial planners, business groups and health care entities have signed on to a letter urging state Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins to support Governor Kathy Hochul's initiative to protect older New Yorkers from financial exploitation by scammers.

In the letter dated February 12, the signees, including AARP New York, point out that elder financial exploitation is a "serious and growing concern" nationwide. The Governor's Executive Budget proposal unveiled last month includes a measure that will allow banks, investment advisors, and other financial institutions to place a hold on a transaction if they suspect financial exploitation.

"The Governor's budget proposal will equip bank tellers to be a strong line of defense in protecting the financial security of older adults.," the groups stated in the letter. (See below)

According to the FBI's most recent Elder Fraud Report, elder fraud complaints to the FBI's Internet Crime Complaint Center increased by 14%, and associated losses increased by 11% in 2023. New York had the fifth highest number of complaints filed by people over the age of 60, and is the fourth highest in monetary losses in this age group, according to the FBI data.

A 2024 AARP survey found that 86% of New Yorkers age 45 and older stated that elder financial exploitation is a problem. Further, 88% said they would support a measure that allows banks to put a hold on a transaction if they suspect financial exploitation is occurring.

"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," said Beth Finkel, AARP New York Director. "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."

"Older New Yorkers are unfortunately targeted for financial exploitation and scams at an alarming rate, and we must constantly work to combat such exploitation," said Becky Preve, Executive Director, Association on Aging in New York. "The Association on Aging fully supports legislation that affords older individuals protections against these terrible crimes."

"Financial abuse causes older adults and their families irreparable harm," said Allison Nickerson, Executive Director, LiveOn NY. "LiveOn NY supports this legislation that adds safeguards to our communities and will prevent fraud and abuse."

"We know that financial exploitation is the most prevalent form of elder abuse and cost victims and the state billions of dollars," said Ann Marie Cook, President/CEO of Lifespan of Greater Rochester. "We strongly support legislation so banks can hold a suspicious transaction for further investigation and report suspected abuse to the right authorities. Our ultimate goal is to help older adults in New York State live fulfilling lives free of abuse and exploitation."

"All too often, by the time we discover elder financial exploitation, it is too late to do much about it. Once the funds are removed from the victim's bank account, that money is gone, either sent to a foreign country, or immediately spent by the perpetrator," said Karen L. Nicolson, Esq., CEO, Center for Elder Law & Justice. "This bill will give the bank a much-needed pause to ensure that the accountholder understands the consequences of their actions. As criminals get more sophisticated, New York needs every tool available to fight back. Anyone can be a victim of financial fraud."

As financial crimes against older adults become more sophisticated, New York needs every tool available to fight back,

Connect with AARP New York on X: @AARPNY, Facebook: AARP New York and LinkedIn: AARP New York

About AARP

AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.

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February 12, 2025

The Honorable Andrea Stewart-Cousins

Majority Leader

New York State Senate

907 Legislative Office Building

Albany, NY 12247

The Honorable Carl Heastie

Speaker

New York State Assembly

932 Legislative Office Building

Albany, NY 12248

Dear Majority Leader Stewart-Cousins and Speaker Heastie:

Our organizations are committed to protecting the financial security of older New Yorkers and keeping their hard-earned assets safe from predatory scams and financial exploitation. The Governor's Executive Budget proposes a measure that will allow banks, investment advisors, and other financial institutions to place a hold on a transaction if they suspect financial exploitation (see Transportation, Economic Development, and Environmental Conservation Article VII, Part AA). We strongly support this measure and urge you to include it in the final budget.

Elder financial exploitation is a serious and growing concern. According to the FBI's most recent Elder Fraud Report, elder fraud complaints to the FBI's Internet Crime Complaint Center increased by 14%, and associated losses increased by 11% in 2023.[1] Elder fraud is a more insidious threat than the report shows. Many of these crimes go unreported, and, as the report states, "only about half" of the fraud scam complaints submitted to the FBI included the victim's age. According to the data, New York had the fifth highest number of complaints filed by people over the age of 60, and is the fourth highest in monetary losses in this age group.

Some of the most common scams targeting older people are government impersonation scams, sweepstakes scams, robocall scams, tech support scams, and grandparent scams.[2] These scams often ask for payment through cash or money transfers, making it difficult for the older adult to recover their money once it has been transmitted to the scammer.

The Governor's Executive Budget proposal would require employees of these financial institutions to receive training to spot the signs of financial exploitation, empower them to hold suspicious transactions and work with local law enforcement and Adult Protective Services to investigate potential instances of elder financial exploitation.

Scams and fraud can be devastating to the financial security of older adults. Victims can lose their retirement savings with limited means to recoup that money or return to work to rebuild their assets. By allowing banks and financial institutions to intervene before the transaction is completed, these financial losses can be prevented.

In a 2024 AARP survey of New Yorkers age 45 and older, 86% of respondents said that elder financial exploitation is a problem. Further, 88% said they would support a measure that allows banks to put a hold on a transaction if they suspect financial exploitation is occurring. A national AARP survey shows that 92% of older adults want employees of financial institutions to be trained to recognize financial exploitation, and 67% would be more likely to use a bank or credit union that is taking steps to prevent financial exploitation.[3]

The Governor's budget proposal will equip bank tellers to be a strong line of defense in protecting the financial security of older adults. We strongly urge you to pass a final budget that includes these protections.

Thank you for your attention to this matter.

Sincerely,

AARP New York

Agape Physical Therapy

Age-Friendly Glen Cove

Association for Mental Health and Wellness

Association on Aging in New York

Buffalo Center for Health Equity

Capital District Latinos

Center for Elder Law & Justice

Century Benefits Group, Inc.

Consumer Reports

EAC Network

Erie County Senior Services

Family and Children's Association (FCA)

Family Service League Inc

FPA Long Island

Friends Inc

Glen Cove Senior Center

Gurwin Jewish Nursing and Rehabilitation Center

InterFaith Works of Central New York

Island Harvest Food Bank

Latino Commission on AIDS

Life Enrichment Center

Lifespan of Greater Rochester, Inc.

LiveOn NY

Nassau Council of Chambers of Commerce

NY LGBT Network

Roel Resources

RPEA (Retired Public Employees Association)

United Way of Long Island

Vision Long Island/LI Lobby Coalition

cc: Senator Liz Krueger

Assemblymember Gary Pretlow

David Friedfel

Jonathan Lang

Philip Fields

Jen Best

[1] https://www.fbi.gov/news/stories/elder-fraud-in-focus

[2] https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults/

[3] https://press.aarp.org/6-13-2024-AARP-Report-Nearly-Half-U-S-Adults-Targeted-Financial-Exploitation