Safeguarding Against Elder Financial Exploitation

• In Event: White-Collar Crime at 75: Industries and Case Studies III

Abstract

According to the Department of Health and Human Services’ Administration on Aging, the population aged 65 and over has increased 18% in the past decade, from 35 million to 41.4 million. By 2050, it is projected that this age group will comprise 20% of the U.S. population. This phenomenon is important to the financial industry, as this population is the target of many fraud schemes. In a study by MetLife in 2009, an estimate of $1.5 billion losses results from all forms of elder financial exploitation annually. As the estimate is based on reported losses, the true cost of elder financial fraud is expected to be at least twice this amount. While there are multiple ways to tackle this growing problem, this presentation examines two methods. The first is collaboration between law enforcement, community outreach groups and financial institutes. The second is data driven, with an emphasis on patterns and outliers. Ultimately, it would be best if both methods are used in conjunction with each other and the advantages and limitations of implementation are discussed.

Authors

• Seokhee Yoon, CUNY Graduate Center

• Christina Siess, Citi