On October 30, the Senate Special Committee on Aging heard testimony on financial abuse of the elderly and the Elder Justice Act (S. 333). A similar hearing on abuse and exploitation of the elderly was held last week (see The Source, 10/24/03).
S. 333, sponsored by Sen. John Breaux (D-LA), would establish an Office of Elder Justice within the Departments of Health and Human Services (HHS) and Justice to prevent elder abuse, neglect, and exploitation. The measure also would increase the number of health care professionals with geriatric training, and would provide for a long-term care facility employment tax credit. An identical bill, H.R. 2490, sponsored by Rep. Rahm Emanuel (D-IL), has been introduced in the House.
“We must protect seniors from scam artists and predators determined to take the money, the home, and the assets they spent a lifetime saving and accumulating,” Committee Chair Christopher Bond (R-MO) said. He noted that the elderly are “extremely attractive targets” since they “control 70 percent of the nation’s wealth.” Sen. Bond praised the Elder Justice Act as “the first, comprehensive legislation to address the issue of elder abuse in all its forms.”
Ranking Member Barbara Milkulski (D-MD) stated, “Protecting the financial security of older Americans must be a priority.” She noted that “40 percent of all elder abuse involves some kind of financial exploitation.”
A victim of financial abuse, Richmond Chambers of Chevy Chase, Maryland, related his experience earlier this year. A man claiming to be a Visa representative phoned Mr. Chambers and requested personal information, which he said was needed due to a computer error. “I was…suspicious,” Mr. Chambers said. “He finally gave me a toll-free number, which he said would verify his identity.” Mr. Chambers phoned the number, which appeared to be genuine. He then gave his Visa card number, mother’s maiden name, and social security number to the caller. The next day, Mr. Chambers received a flyer describing this type of scheme. “I immediately called the fraud unit at Visa and related the incident,” he said. “My account was closed and reestablished with a new number.”
The Attorney General for Maryland, J. Joseph Curran, Jr., stated that both enforcement and education are needed to combat financial abuse of the elderly. Mr. Curran described his office’s Senior Outreach program, which includes a new website with information designed to help seniors avoid fraudulent investments. He said that Mr. Chamber’s generation is generally “trusting,” but alerts, such as the one Mr. Chambers received, can help. Mr. Curran suggested that fraud alerts could be conveyed through public service announcements, senior centers, and bills sent out by credit card companies.
Carol Scott of the National Association of Long Term Care Ombudsman pointed out that “perpetrators can be family members, friends, healthcare professionals or con men (and women).” “Stopping abuse,” Ms. Scott said, “will take…regular citizens asking questions, courts that are prepared to hear cases, and a better understanding of who can become a victim.” Ms. Scott said that, in addition to allowing better data collection, the Elder Justice Act “will provide federal resources to support state and community efforts on the front lines,” and, “maybe more importantly, will bring national attention to the issue of abuse, neglect, and financial exploitation.”
Testifying on behalf of the National Committee for the Prevention of Elder Abuse, Robert Blancato described dealing with elder financial abuse as “complex.” “The primary abusers in financial abuse and exploitation, as in all other forms of elder abuse, are family members,” he said. Financial abuse is “more difficult to detect and prosecute because it is unclear whether an older person has truly understood and consented to the actions in question.” Mr. Blancato mentioned the importance of the Violence Against Women Act and the Victims of Crime Act in providing “funding and resources on the protection of older victims.” He expressed the support of the National Committee for the Prevention of Elder Abuse for the “speedy enactment of the Elder Justice Act.”
W. Lee Hammond of AARP confirmed that “sons, granddaughters, caregivers, neighbors, new-found friends” are often the perpetrators of elder financial abuse. “AARP,” he said, “is addressing this problem through programs that educate members, families, professionals and potential victims.” In addition to financial literacy programs, AARP has a Foundation Money Management Program, which uses “volunteers to assist vulnerable low-income older people with their daily money management needs.”
