PUBLIC TESTIMONY
Testimony by John Holt, Senior Staff Attorney at Weinberg Center for Elder Justice on Elder Fraud Prevention
3:01:17
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162 sec
John Holt, representing the Weinberg Center for Elder Justice, testifies in support of a proposal to provide educational materials on elder fraud, end-of-life preparation, and financial literacy to older adults. He emphasizes the increasing prevalence and complexity of scams targeting seniors and the need for continually updated, effective prevention strategies.
- Highlights the importance of financial and technological literacy in empowering older adults to identify and avoid scams
- Discusses the psychological tactics used by scammers and the barriers that prevent older adults from reporting fraud
- Stresses the need for accessible support systems to prevent re-victimization and mitigate harm from scams
John Holt
3:01:17
Good afternoon.
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Cher Hudson and Cher salon members of the committee.
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I'm John Holt, senior staff attorney for the Weinberg Center for Elder Justice at the Hebrew Home at Riverdale.
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The Weinberg Center strongly supports the proposal to make educational materials on elder fraud, end of life preparation, and financial literacy more widely available to older adults.
3:01:34
In New York State research suggests that one in twenty four older adults experience some form of financial exploitation and review of the elder fraud complaints to the FBI Internet crime complaint center shows that the number of reported crimes and monetary losses have both significantly increased over the last 5 years.
3:01:48
As the scope of the impact of scams on older adult grows so to their variety and complexity.
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Scams evolving cryptocurrency and the use of generative I AI are increasingly prevalent, and scammers reach older adults through a variety of channels, including text messages, phone calls, emails, and social media.
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The landscape of scams is constantly shifting, requiring continual update of educational materials to ensure they are relevant to the current experiences of older adults targeted by scams.
3:02:12
Effective elder fraud prevention begins by providing information to older adults that empowers them to make appropriate decisions about their finances.
3:02:19
Teaching basic financial and technological literacy and providing foundational understanding of how scams function, and the tactic is employed by scammers allows older adults to better identify fraudulent activities and avoid falling prey to exploitation.
3:02:31
However, education geared towards identifying and preventing scams is only one part of the equation.
3:02:35
Older adults also need access to information on how to respond when they have been successfully targeted by a scam, including where to report the crime, what supportive resources are available, how to minimize the likelihood that the fraud will imperil their ability to afford living independently in their community.
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Scammers are sophisticated criminals who adapt their tactics to most effectively reach their audience and achieve their ultimate goal, fraudulently obtaining control of as much money as possible from their target.
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Scammers often establish a relationship of dominance using manipulation, deception, and emotional coercion to instill fear, confusion, or dependence.
3:03:07
Much like other forms of elder abuse, these dynamics of power and control foster and environment reduces the likelihood an older adult will report the fraud, even where an older adult recognizes that they have been the victim of a scam, feelings of fear and shame act as mere major barriers to seeking assistance.
3:03:22
These challenges providing effective prevention and intervention when an older adult has been targeted by a scam.
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Scammers are often successful because what they offer fills a void, whether it is material, spiritual, emotional, or psychological that targets the unmet needs of the older adult.
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The financial impact and fear of familial and social repercussions from the initial fraud can leave an older adult more vulnerable to manipulation and exploitation by new scammers, and literature suggests that once an older adult has been scammed, the cycle of exploitation is likely to be repeated.
3:03:49
Any impactful education initiative on scams must address the stigma and create viable accessible avenues for an older adult to receive assistance and support to prevent re victimization and mitigate harm.
3:03:59
Thank you.
